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Ripple’s Japanese dreams: What is going on with their SBI partnership?

Anirudh VK

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Ripple's Japanese dreams: What is going on with their SBI partnership?
Source: Unsplash

The Japanese market is being specifically targeted by Ripple, as seen from their partnership with SBI Holdings and the launch of SBI’s Virtual Currencies trading platform with XRP as an exclusive at launch.

slinuxuzer on XRP Chat Forums claims to have a theory that explains Ripple’s “very specific strategic reason” for entering the Japanese market. This is illustrated in his post on the forums, wherein he starts by establishing some basic facts about the Foreign Exchange [Forex] market.

The Forex market is one of the biggest markets in the world, with the global market transferring upwards of $5 trillion every day. This includes both the interbank and over-the-counter markets, which includes spot trading, forward trading, futures and many others. The part of the market that deals in Japanese Yen [JPY] has a share of about 21%, which translates to 950,000 billion every day. It is the third biggest currency being traded in the market, after USD and EUR.

slin makes the point that forex markets are subject to low regulation, with profit margins for brokers being razor thin. Moreover, forex transactions usually take about 2 days to complete, with some corridors finishing it in one day.

SBI Group is one of Japan’s biggest banking consortiums that represents about 80% of all deposits done in Japan. As Brad Garlinghouse, the CEO of Ripple, has stated, Japan’s inter-country payment rails are not up to the task, Ripple’s partnership with SBI is said to be in the pursuit of leapfrogging payment rails. However, SBI also operates a Forex division with over 1 million traders. Their most recent report mentions an alliance with MoneyGram and also references their partnership with Ripple, stating:

“Money transfer services between SBI Remit and The Siam Commercial Bank Public Company Limited, the largest private bank in Thailand, makes use of the next generation settlements platform (Ripple Solution) from Ripple of the U.S., to provide international remittance services founded on distributed ledger technology, with plans to employ virtual currencies in settlements.”

It was also mentioned that they are interested in creating a synergy between their Forex, Securities and Cryptocurrency businesses. Slinux believes that this synergy is indicative of Ripple’s plan “from the beginning” to target Japanese forex markets. He also made predictions as to the changes that this could bring to the price of the XRP token.

XRP capturing 1% of the Japanese Forex market would result in a $10 billion volume made in trades every day, which represents “one small piece, of one corridor, of one use case”. Comparing this against the circulating supply of the token, which is close to 20 billion, this will cause a “significant price increase”, says slin.

Forex traders are also incentivized to use XRP to decrease settlement times of transactions, which would in turn increase profit margins in an already competitive business. Moreover,  with the use of xRapid, capital in the form of nostro and vostro accounts would be freed up for use elsewhere.




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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Analysis

XRP/USD Technical Analysis: Sideways movement to end as breakout imminent

Priyamvada Singh

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XRP/USD Technical Analysis: Sideways movement to end as breakout imminent
Source: Pixabay

As the cryptocurrency market switches their allegiance between the bull and the bear, XRP is painted red at the moment. The token is slumped by more than a percent wherein the coin is trading at $0.3 with the market cap of $12.4 billion. The 24-hour trading volume is calculated at $305.8 million.

1-hour

XRP 1-hour candlesticks | Source: tradingview

XRP 1-hour candlesticks | Source: tradingview

In the 1-hour price chart, the downtrend is ranging from $0.315 to $0.311 whereas the uptrend is extending from $0.301 to $0.308. A clear possibility of a trend breakout is visible as the prices are packed tightly, ready to explode in either direction.

The Parabolic SAR is bullish on the cryptocurrency as the dots have assembled themselves below the candles to support the bull.

The Aroon indicator is showing a greater strength in the downtrend, which is a bearish sign for XRP. However, it can be observed that the red trend is losing its power and crashing.

The Awesome Oscillator is slightly bullish on the coin as the bars have turned green at present.

1-day:

XRP 1-day candlesticks | Source: tradingview

XRP 1-day candlesticks | Source: tradingview

In the 1-day timeline, the downtrend is stretching from $0.51 to $0.31 whereas the uptrend has been observed from $0.27 to $0.3. A trend breakout is not visible as of now.

The Klinger Oscillator has made a bullish crossover by the signal line. This indicates that the reading line is traveling in favor of a green trend.

The RSI is extremely bearish on the cryptocurrency as the indicator has crashed to the bottom of the graph. A trend reversal is not expected as well, as the reading has not hit the oversold zone.

Conclusion:

In this technical analysis, it is clear that the indicators are giving a mixed sign, advocating for a sideways trend. However, since a trend breakout is predicted in the shorter timeframe, a bullish win might take over the price chart.


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Altcoins

Monero [XMR]’s Riccardo Spagni: BAT is lot more centralized than they purport it to be

Priya

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Monero [XMR]s Riccardo Spagni: BAT is lot more centralized than they purport it to be
Source: Unsplash

Monero’s lead developer, Riccardo Spagni aka fluffypony, spoke about Basic Attention Token [BAT], elucidating why he considers it to be centralized in the latest episode of Magical Crypto Friends.

Basic Attention Token is the digital currency used for rewarding content publishers and users for paying attention to the content, a break-through in the digital advertising sector. This also provides advertisers with more in return for their advertisements. For the very same purpose, Brave Browser browser monitors the users’ attention, while ensuring that the data does not leave the users device.

However, the Spagni stated it has a loophole on Twitter:

“I just found out that BAT has a nice loophole that lets them steal funds from users. Permissionless scamovation indeed! […] Users are NOT going to go & buy BAT when their airdropped tokens run out, no matter how slick. There’s simply too much friction. Consider what happens RIGHT NOW when most people hit a paywall: do they (1) disable their ad blocker, (2) pay the publisher, or (3) just close the tab?”

This was followed by a Twitterati, Patrick, stating that the BAT ecosystem is designed to work in manner wherein the advertisers purchase the tokens and then use them to buy advertising space on the browser. He further stated that users will earn 70% share of the revenue if they agree to view the ads, adding that they will be paid in BAT for their attention and can tip this BAT to their preferred content producers.

To which, Spagni said:

“I understand that part of it, and I think it’s safe to disregard it as (1) it’s going to be gamed making it a race to the bottom for ordinary users, & (2) very few people want to see a plethora of ads even if they’re getting paid. I also think the browser lock-in is shortsighted.”

To counter this statement, Patrick attached a tweet of Brendan Eich, the co-founder and CEO fo Brave, wherein he has remarked that Brave uses Uphold for KYC/AML process, which is required for users to be able to withdraw their funds. This is so that “the threat is DoS not theft by fraud”.

The founder added that they make use of Proof of Browsing and “buffering on the device and in a settlement, allowing anti-fraud/Sybil attack analysis and BAT claw-back”.

In the episode, Spagni stated that he found it interesting that it is “a lot more centralized than they purport to be”, adding that this is true when it comes to a lot of dApps. He further stated:

So I was having this debate on Twitter with a bad show and I said okay but that’s gonna be gained at some point you know someone’s gonna figure out the heuristics and they’re gonna have like right a bunch of bots that are gonna be indistinguishable from real humans […] it’s going to appear to be real browsing and they’re gonna airdrop these tokens onto them”

Following this, Spagni spoke about Proof of Browsing, which will determine whether the ‘attention’ is true or not, whether it is a  human or a bot, and callback if a person is taking advantage of the system. The developer stated that if a user fails to complete the KYC/AML process and Proof of Browser, then the money is taken back from the user.

“I mean it’s not it’s not yours yet because you haven’t withdrawn it, is their theory but at the end of the day that’s no different from a database because you know they’re controlling everything, they’re controlling the influx of supply into the market, they’re controlling whether or not somebody legitimately earns that […] but the reality is it’s a centralized system”


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