Ripple’s director says that the company will be a giant in the area of payments in two years. This occurs in a context in which the company could lose investors.
The company Ripple, developer of the XRP token, is currently in the process of adding new trading strategies to its business model.
The company seeks to be “the Amazon of payments” through a payment platform that allows individual users to use the XRP token.
Brad Garlinghouse, the CEO of Ripple, explained that Amazon initially only sold books and is now a global trade giant. He predicted that people Ripple will be to payments what Amazon was to books “two years from now.”
Of course, this would be in parallel to the service that Ripple has provided to banks and financial institutions since its beginnings.
The newspaper Financial Times considered that the incorporation of this platform implies that Ripple is in the process of making a “commercial strategy reset”. They stated that this occurs because the adoption by banks was not what they had expected.
In this regard, Garlinghouse clarified that this is not a matter of strategy reset. He argued that cross-border XRP payments are working, which he substantiated by saying that “more than two dozen customers are on board.”
Ripple’s Reputation in the Cryptocurrency Ecosystem
Michael Arrington, Founder of the informative website TechCrunch, criticized Ripple’s strategy for winning over banks, whose systems are already adapted to the current system. He said that it would be “like Uber trying to disrupt the taxi business by working with taxis.”
On its new course, Ripple will have to shed its controversial reputation within the cryptocurrency ecosystem. Since many participants in this micro-world have anti-establishment ideals, they do not approve of the links that Ripple tried to consolidate with the traditional banking system.
For that reason, Arrington considers that the new platform that Ripple seeks to develop “will receive a lot of hatred within the world of cryptocurrencies.”
Impact on Price of XRP
In August, the XRP token has not continued the bearish trend that it had. At the time of writing this article, it is trading at USD 0.28, after having reached USD 0.32 on August 2nd. However, it is 47.3% above the USD 0.19 that it cost last month. It will be necessary to wait to see how the innovations mentioned above will influence the price of the cryptocurrency.
Other situations can influence the price of XRP, such as the rumor that two large investors might be thinking about withdrawing the capital that they invested in the Ripple Company, according to an anonymous informant.
That person believes that investors want to get rid of their capital after the hint of an eventual initial public offering. This could suggest that Ripple shareholders do not trust the company to be ready to go public on the stock market shortly.
The Securities and Exchange Commission (SEC) reported on August 12th that Goldman Sachs had sold USD 6.5 million worth of shares that it had on MoneyGram, Ripple’s partner remittance company. It is important to remember that Goldman Sachs is one of the largest financial groups in the world.
By Alexander Salazar
