The sudden gains recorded in the cryptoverse has brought a notable crypto asset to the limelight. Data from Coinmarketcap shows that Ripple (XRP) has seen a price rise of over 30% from $0.19 to $0.244 in the last 14 days.
XRP outpaced Tether to become the third most valuable crypto asset in dollar terms, at around $11 billion. Its trading volume was about 1.6 billion at the time this report was written.
There is no clear reason behind this surge, but Nairmetrics, through its data feed, observed few whales increasing their stakes in the digital coin astronomically, even as XRP reclaimed the number three spot from Tether.
Consequently, since July 18, the number of wallets holding 1 million to 10 million XRP has been steadily increasing. Roughly 30 new whales have joined the platform, representing a 3.7% increase in a short period.
In addition, Ripple’s Director of Product, Craig DeWitt, revealed a P2P payment platform built on XRP, thereby increasing its importance in the area of peer to peer payment.
Why are whales buying?
Economic historian, Barry Eichengreen, recently explained that cryptos should not just be considered for speculative reasons, as leading crypto assets have shown characteristics of being tangible assets. He said:
“I don’t think that thinking about crypto as speculative investments is really a long-term viable business model. Speculative investments have come and gone throughout history. Tulips came as a speculative investment and they went. [Digital assets] that provide actual tangible services like cross-border payments are the ones that are likely to have legs.”
Barry went on to explain why cryptos have become the new digital gold, saying:
“Gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it. There is, from that point-of-view, a parallel with cryptocurrencies. People pay actual U.S. dollars for it because they think other people will value it and pay actual U.S. dollars for it.”
Quick fact: Ripple (XRP) plays dual roles as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
Unlike its crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered and Barclays for international transactions worldwide.
#EndSARS Nigerian Rights group switch to Crypto
A Nigerian rights group strongly supporting the #EndSARS campaign has highlighted why it is accepting donations in Bitcoin.
Nigerian millennials in the past few weeks have taken to the streets in unprecedented numbers, kicking against the abuse done by a significant number of law enforcement officers, most specifically, the disbanded Special Anti-robbery Squad (SARS).
As the protest rages on, various rights groups have set up funds to provide participants, support, while they glamour for the long-overdue reforms.
Feminist Coalition, recently gave reasons why it’s now switching to crypto. The group said;
“We’re moving to only accepting donations in Bitcoin using BTC Pay. BTC Pay is a free, secure, decentralized, and censorship-resistant platform, which makes it our best option, given the past few days #EndPoliceBrutalityinNigeria. Please donate here: https://donatebtc.feministcoalition2020.com”
We're moving to only accepting donations in Bitcoin using BTC Pay. BTC Pay is a free, secure, decentralized and censorship-resistant platform, which makes it our best option, given the past few days #EndPoliceBrutalityinNigeria
Please donate here: https://t.co/FvsEKetUL9
— feministcoalition (@feminist_co) October 15, 2020
The fast-rising Nigerian rights group provides logistics, aid to Nigerians pressing for Police reforms via street protests disclosed they raised about 8 bitcoins valued at over $88,0000 and other cash donations.
— feministcoalition (@feminist_co) October 19, 2020
Why this matters
The donations are used in providing medical and legal bills for some Nigerians arrested in recent days, and most importantly to hire private security guards in protecting them against armed gangs, who of late have tried to discredit the theme of the peaceful protests.
Another critical macro making many Nigerian millennials use crypto amid protest for reforms is basically because the #EndSARS protests in principle is decentralized. There is no known centralized authority coordinating the protest, and not forgetting, the much advantage cryptos have over fiat currencies are that they are decentralized finance assets, meaning, funds can’t be controlled, blocked or disengaged by any central authority.
Also, crypto donations are very secure, and privacy concerns kept at a minimal level, on the basis you don’t disclose your personal details when making such transfers.
Nairametrics had earlier given vital insights on how for years, young Nigerians, mostly via social media, have called for the notorious Police unit to be disbanded and rogue elements in the force brought to justice. Despite repeated promises by the government, they have failed to heed to the demands, triggering a new wave of protests that have now spread across the country.
Customers’ data: Coinbase received 1,914 requests from FBI, SEC
Coinbase recently disclosed it had a significant number of requests from law enforcement agencies regarding customers’ data.
The world’s most valuable crypto exchange, Coinbase, recently disclosed that it had a significant number of requests from law enforcement agencies in the world’s largest economy, U.S, and other parts of the globe.
In its first-ever Transparency Report, Coinbase disclosed that it currently serves about 38 million customers globally, thus it collected 1,914 requests from global law enforcement and government agencies in H1,2020 that sought to get details on customers’ details and their financial data.
Unsurprisingly, the United States leads the pack with 58% of such requests; others include law enforcement agencies from the United Kingdom, Germany, and France which filed for 441, 176, and 45 information requests, respectively.
Why this matters: The leading American U.S crypto exchange believes that trust is optimized through transparency and honesty via releasing a Transparency Report that shares insights into how it handles legitimate government requests for some customers’ data.
Coinbase believes that transparency reports like this should be encouraged, in spite of the opaque reporting seen by many startups, especially in financial services. It believes that it is important, not just for crypto companies, but for fintechs and banks at large to shed light on financial data sharing practices, and contribute to the understanding of industry trends in a meaningful way.
- 58% of all requests come from US agencies.
- 90% of all requests come from three jurisdictions: the U.S., UK, and Germany.
- 16% of all U.S. requests come from state or local authorities.
Bitcoin could reach $225,000 by 2021
Morgan Creek Digital Assets’ Anthony Pompliano outlines key fundamentals that may trigger Bitcoin price action.
Popularly known Crypto hedge fund manager and co-founder of Morgan Creek Digital Assets, Anthony Pompliano, recently revealed some key strategies on how the world’s flagship crypto, Bitcoin, could reach $225,000 by 2021.
In his most recent letter to investors, the hedge fund manager outlined key fundamentals that may trigger such price action in the not too distant future by saying:
“The average investor fears inflation right now, regardless of whether we actually see that inflation or not. This fear has driven significant capital flows into inflation-hedge assets (Gold, Bitcoin, Real estate, etc). The combination of the Fed’s asset price manipulation and inflation fears have driven gold and Bitcoin to drastically outperform equities and other commodities.
“Let’s first look at the demand side of the equation. The macro-environment is serving as a tailwind. Bitcoin is up more than 50% year-to-date. The continued 0 rate environment and QE will continue to drive demand. Additionally, we are seeing traditional asset management firms start to make the leap into owning Bitcoin.
“Fidelity Investments recently published a paper showing a positive impact for 1%-5% Bitcoin allocation in clients’ portfolios. Stone Ridge ($10B asset manager) now owns $115M in Bitcoin.
“Paul Tudor Jones publicly revealed that he has put 2% of assets into Bitcoin. Multiple public pensions in the US have now gained exposure to Bitcoin via fund managers. Grayscale, the largest digital asset investment manager, saw record inflows of $1B+ in 3Q20 and now has almost $6B in total AUM.”
Why it matters: The world’s economy now looks to be heading toward the insolvency phase, meaning that crypto traders, and global investors are now wary that pre-COVID-19 global economic growth will take longer than anticipated, thereby leading popular companies to hedge against currency devaluation and inflation via investing in digital assets like Bitcoin. Coupled with the bias, there is a fixed amount of BTCs to satisfy the huge appetite prevalent in institutional investors.
Anthony Pompliano also gave key insights on why bitcoin’s high demand, in spite of its fixed amount of supply, might just signal the push in price value next year. He said:
“This increase in demand is just starting in my opinion. We can list all of the leading, forward-thinking firms in only two paragraphs. Eventually, their peers will join them. The demand outlook is strong, and it shows signs of actually accelerating into the first half of 2021.
“More than 60% of all Bitcoin in circulation today have not changed hands in the last 12 months. This means that the majority of Bitcoin investors stomached multiple double-digit price movements, both up and down, and continued to hold the asset.
“You could evaluate this situation as (a) demand is increasing significantly, (b) the supply shock is making Bitcoin more scarce, and (c) the available float is much smaller than people actually realize. This framework leads me to believe that we are going to see a violent upward movement in the Bitcoin price by the end of 2021. My base case is approximately 10x to $100,000 and the bull case is around $250,000 per Bitcoin.”