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Ripple (XRP) Outlook and Analysis

Ripple (XRP) has been one of the most talked about crypto plays on the planet over the past few years, and for good reason. With the coin weathering a pullback on the chart over the past few weeks, we thought it was an excellent time to take a fresh look at this payment network.

“Ripple” refers to both a payment network and a protocol system. For those unfamiliar with these terms, the coin populates a network with nodes that interface on the basis of a protocol system that defines the characteristics and potential for what is possible over the network. In this case, the future for Ripple is defined in terms of its ability to increase the speed and reliability of financial transactions between major financial hubs while decreasing the potential for errors and fraud.

The main difference between Ripple (XRP) and most other cryptos has to do with the nature of its management and administration: Ripple is not a decentralized network. Its source code is owned privately by the company and cannot be verified by any external framework, process, organization, or individual.

Nonetheless, Ripple’s success is defined by its adoption rate. At this point, there are already many traditional financial institutions that employ Ripple as a principal tool of transaction settlement processes. That’s why you see XRP consistently sitting in the top five cryptos by market cap.

Right now, the “powers that be” are going through a process of determination with the goal of imposing some form of universal regulatory framework on the cryptocurrency universe. Given that Ripple is a major player on the radar of the big banks as both competitor and potential tool, XRP is constantly involved in speculation as to the ultimate impacts wrought by new regulatory measures.

When the G20 meets in March, we expect many new rumors to float out onto the world stage about coordinated pushback from regulators, and Ripple may be suffering for now in advance of those revelations. But the longer-term future continues to look extremely bright now that the fast money has been pushed to the sidelines. The $1/coin level appears to holding as strong support and may now act as the ultimate launching pad for this coin’s new leg higher.

For those looking to diversify within the space, we have some notes on a few interesting payment network altcoins.

 

Bread (BRD)

Bread is effectively positioning itself as a mobile version of a combination between Coinbase and Paypal, which should tell you why we think this could be an extremely interesting opportunity here. At this point, it is already very easy to push and pull Bitcoins around on the Bread app, and more diversity of coins is apparently on the way.

As we all know, the difficulty of understanding how to push and pull coin is possibly the number one complaint for those new to crypto. And Bread offers an easier way to pick it up, which could translate into a huge adoption over time.

Charlie Lee is an advisor, which is another reason to take notice. He founded Litecoin (LTC), and was also the Co-founder and Director of Engineering at Coinbase. He recently famously divested all of his exposure to LTC, which may signal what he believes about the future of BRD.

Bread started trading near the end of the year and has been bouncing around in a range between $1-3/coin and currently has a market cap of about $91 million.

 

Eidoo (EDO)

Eidoo is a Crypto wallet similar to Bread (BRD). However, one key difference is EDO already offers storage of AltCoins.

it is based in Switzerland right near the home of Digital Identity, an investment firm in cryptocurrency infrastructure, whose senior executives are co-founders of Eidoo. The company is building an entire ecosystem within the wallet, such as trading, ICO access, borrowing, and lending.

One of the themes we are looking for in 2018 is the emergence of a next-gen evolutionary expansion of the “wallet” idea. And EDO is a good bet to be a part of that emerging concept in crypto. Imagine people managing their financial lives in terms bill pay, trading, and P2P lending and borrowing inside of a crypto wallet on their phones. This could actually disintermediate some of the cryptos with more traditional forms of trading access.

The other solution would be consolidation, where EDO and BRD become integrated into already existing platforms at a premium.

EDO is currently trading with a market cap of roughly $76 million.


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This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.
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