by Ray Hayes
Ripple (XRP), the third largest digital token in the world, is looking to diversify its cryptocurrency by investing in tech startups that will use XRP in a variety of ways. While the estimated value of XRP is currently around the range of $30 billion, this is a drop from its $128 billion worth in early 2018. With such a large drop Ripple is looking to secure a solid foundation as the turbulent crypto market sorts itself out.
The news of Ripple’s recent plan is is a welcome update as criticism has been thrown at the company due to a lack of XRP usage. Originally, XRP was marketed as a tool for banks to decrease transfer times from days to seconds, but so far the digital token has only attracted cross-border payment (a transaction that involves individuals, corporations, settlement institutions, central banks or a combination thereof, in at least two different countries) and not the domestic bank to bank transactions it is hoping to one day secure.
As we move forward, the big question that remains is why banks are more interested in creating their own token versus outsourcing to XRP? Time will tell if the XRP token can expand the way it envisions, but for now the current plan of startup investment is a good move.