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XRP-collateralized stablecoin will enhance XRP ledger, suggests Ripple’s David Schwartz

Jibin George

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Source: Pixabay
The crypto-verse has witnessed the growth of prominent stablecoin, USDT as the fairly new coin made its way into the 4th position on CoinMarketCap’s list of top cryptocurrencies, surpassing Bitcoin Cash. David Schwartz , Ripple’s CTO suggested that the launch of an XRP collateralized stablecoin would act as a medium for the enhancement of the XRP ledger. 

As per a recent blog post published by Schwartz, the CTO highlighted how a stablecoin would help the XRP ledger in terms of functionality along with expansion. The XRP ledger, which functioned as a free and decentralized system for cross-border payments, was abruptly correlated with an idea which wasn’t entirely decentralized. While stablecoins like Tether and USDC are backed with a huge supply of fiat currency keeping in mind the stability of the digital asset. Schwartz implied a distinct synopsis, one where the stablecoin would be backed by an equivalent amount in XRP to give the assets its value.

The model proposed by Schwartz also induced connections from DAI stablecoin’s model, which was mounted on the ETH blockchain and backed with Ether. He said,

“The key distinguishing property of this proposal is that the stablecoin is always redeemable for XRP on the ledger from the collateral pool.”

Furthermore, Schwartz detailed that a user processing on-ledger transactions by holding one USD-backed stablecoin would be able to make payments just like holding $1 worth of XRP. He further said,

“Some organization or federation still must supply the price the asset is pegged to on a continuous basis or the stablecoin will freeze.”

The entire idea seems to be risky, following the volatile nature of cryptocurrencies. The recent crypto carnage is another example of the volatility of digital assets.

Jibin is a news editor at AMBCrypto. With over three years of experience as a political writer, he primarily focuses on the political impact of crypto developments. A graduate in Law and International Relations, his writing is by and large focused on cryptocurrencies from the political and financial perspective. A Liverpool FC fan. YNWA

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Altcoins

Litecoin’s ailing price prepares for breach of descending channel

Namrata Shukla

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Source: Pixabay

Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.

Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.

Short-term

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.

The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.

Source: LTC/USD on TradingView

Source: LTC/USD on TradingView

The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.

Conclusion

Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.