Ripple Buys Adoption As No One Uses Its “Pointless” Token XRP: Alistair Milne On MoneyGram Partnership

  • Digital Currency Group’s Alistair Milne – Ripple offered 50% of MoneyGram’s market cap just to have them use xRapid
  • XRP price & MoneyGram’s shares jump but still down a great deal
  • Ripple announced a major partnership with MoneyGram on Monday that will use the digital currency XRP as part of its day to day operations.
  • As part of this deal, Ripple has made an investment of $30 million that involves buying MoneyGram shares at $4.10 a share to acquire 8 to 10 percent stake in MoneyGram.

The purchase of newly-issued shares of MoneyGram by Ripple is a significant premium on the share’s recent market price, that languished around $1.50. Additionally, Ripple will not receive a seat on MoneyGram’s board immediately, reportedly it will rather have observer status.

With this deal, San Francisco-based Ripple is making a case for its product called xRapid and digital asset XRP. Ripple has long argued that banks should use the cryptocurrency as a form of bridge currency rather than leaving money tied up in foreign accounts as collateral. However, due to XRP’s legal status being unclear, XRP didn’t make it part of the Ripple’s long list of partnerships.

“Ripple Offers *50%* Of MoneyGram's Entire Market cap just to get them to use their service.”

Just about a year back, MoneyGram’s rival Western Union completed a trial experiment with xRapid, stating the XRP transfer service has not generated any significant savings.

“We are always criticized that Western Union is not cost-efficient, blah blah blah, but we did not see that part of the efficiency yet during our tests,” Western Union CEO Hikmet Ersek told Fortune at that time. “The practical matter is it’s still too expensive.”

However, Asheesh Birla, Ripple’s senior vice president of product said the company sent just 10 payments using xRapid, far too few to reap any significant results.

“If they were to move volume at scale, then maybe you would see something, but with 10, it’s not surprising that they’re not seeing cost savings,” Birla said.

Over this partnership, Alistair Milne, CIO at Atlanta Digital Currency Fund took a jab at Ripple, saying,

“So Ripple offers *50%* of MoneyGram's entire market cap just to get them to use their service.”

“Ripple: no-one uses our pointless token so we're buying adoption now. MoneyGram: Woohuu, we were dying!! Exit pamp!” tweeted Milne.

In another event, Facebook’s Libra has been attributed by some as Ripple killer due to their overlapping markets.

A Jump in Price But Still Down

In recent months, Brad Garlinhouse, CEO of Ripple claimed hundreds of partners are now using XRP. XRP is the third largest cryptocurrency by market capitalization of more than $18 billion.

Currently, XRP/USD is trading at $0.432 with 24 hours loss of 0.97 percent.

On the day the announcement was made, XRP rose 8 percent while MoneyGram shares’ jumped 150 percent.

However, Milne pointed out, how in last 5 days, MoneyGram’s share price is in red by over 7% while down over 80% in the past 1 year and XRP is down by 89 percent from its all-time high.

Ripple (XRP) Live Price

1 XRP/USD =$0.1819 change ~ 3.01%

Coin Market Cap

$7.88 Billion

24 Hour Volume

$125.17 Million

24 Hour VWAP

$0

24 Hour Change

$0.0055

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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