XRP to be used to Support ICOs
The latest news reports suggest that a small group of coders are planning to use the XRP platform to launch crypto tokens. And this is not news that XRP’s creator Ripple is too happy about.
Traditionally, Ripple has tried to distance itself from cryptocurrencies, focusing instead on distributed ledger technology offerings to some of the world’s biggest financial companies. And while the XRP platform is open-source, the foundation has not gone out of its way to publicize it.
Usually, it is the Ethereum blockchain that is used to launch new cryptocurrencies. However, lately, a significant number of issuers have been looking for other options.
Why XRP?
According to a small Brazilian company called Allvor that focuses on streamlining digital payments, the XRP ledger is a more attractive option for operating its (hopefully) expanding token-based business. Allvor is planning to launch its own crypto token called ALV and develop a platform that the token can interact with.
According to the company’s white paper, Ripple’s XRP ledger is the “best and most efficient” database tech ever created. The company says that it is fast, among other plus points. It is also a system that does more than settle transactions. The system can integrate merchant logistics, marketing software as well as customer management.
The company feels that XRP’s platform offers multiple payment gateways, which means that Allvor will be able to set up a global system much more easily.
Adoption of XRP
While Ripple has been struggling to position its XRP platform as a technology that banks and other financial institutions can use – basically trying to prove that XRP is serious business, there are still others who have already begun using the crypto platform to launch their own tokens. This group might still be small, but experts believe that adoption could take place in the near future.
Jon Holmquist, an entrepreneur in the cryptocurrency industry as well as the founder of the Bitcoin Black Friday lobby, was the first to launch his token on Ripple’s platform back in June 2017. Through his ICO he was able to generate about $1,500 worth of XRP, however, after a month, he refunded his investors because of the fear of the guidance the SEC had put out in the wake of the DAO fiasco.
According to him, the only thing that is holding people back is the fear of regulators and how the cryptocurrency industry structure is going to pan out. Having said that, Holmquist still believes that many more entrepreneurs are going to see the benefits of the XRP ledger in relation to issuing tokens.