XRP Can Be Next Futures Market

Crypto Facilities has been operating a futures market for the Ripple for almost 18 months now
20 March 2018   949

Crypto Facilities from UK has been operating a futures market for the 3rd largest cryptocurrency, developed by Ripple Inc., for almost 18 months now. While CEO of Crypto Facilities, Timo Schlaefer, until recently, did not disclose information about this product, he believes that the quantitative indicators indicate that the wider distribution of derivatives based on XRP is possible. This is reported by Coindesk.

We have pretty good order books. And we're in the process of working with some of the large market makers to draw that further.
 

Timo Schlaefer

CEO, Crypto Facilities

While before the launch of futures for bitcoin in the US, several more months remained, Crypto Facilities, without creating excessive noise, entered into an agreement with Ripple and launched futures for XRP in addition to its own bitcoin futures, regulated by the UK Financial Supervision Authority.

Later, when CBOE and CME Group launched their first futures at the end of last year, the volume of trading in futures for XRP Crypto Facilities reached $ 14.2 million per month, and by the time of the expiration of the first CBOE futures - was already $ 24.6 million.

Nevertheless, few outside the company knew about the existence of this tool, and especially its scale.

The launch of XRP futures took place in October 2016, but the instrument did not cause much interest until April 2017. Then in one month the volume of trading increased more than 3 times and reached $ 3.08 million, and a month later - $ 12.1 million. Simultaneously with this  the price of XRP raisd from $ 0.03 in April to $ 0.34 in mid-May, after which there was a significant decline.

However, in January 2018, in the volume of trading in futures again reflected the price of a digital asset, and the figure jumped to $ 24.6 million, while the price of XRP updated the maximum at around $ 3.53.

XRP Futures Trading Voume
XRP Futures Trading Voume

Schlaifer argues that he has every reason to believe that the next crypto-currency instrument that will enter the broader traditional market will be tied to the XRP course. Information of Schlaifer can be supported also by the fact that Crypto Facilities took a direct part in creating the bitcoin index for the CME Group.

Although the representatives of the Chicago trading platform refused to comment on the situation, it is known that the CME Group participated in the B series of financing Ripple in 2016, when the startup attracted $ 55 million. Soon after, the former head of options for precious metals CME Group joined Ripple as head by XRP markets.

Responding to a request from the media, the representative of CBOE referred to last year's statement by the head of the exchange, who said that the company is ready to add new crypto-currency options.

CEO LedgerX also said that his company is interested in the possibility of launching XRP futures. However, this issue, he said, requires further elaboration, which is already being handled by a specialized group.

So, for example, it seeks to establish whether sales of large volumes of XRP are related to an attempt to manipulate the market, which may be especially important for futures, which will be calculated at fiat.

 

Crypto Won't Replace Fiat, XRP CEO Says

But head of Ripple believes that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution
05 September 2018   592

Ripple's CEO Brad Garlinghouse is convinced that the fiat currency will not lose relevance in the near future and called "senseless" the possible replacement of traditional currencies with digital assets. The future of crypto currency lies in cross-border transactions, Garlinghouse said in the Stanford Legal podcast. This is reported by CoinSpeaker.

I don’t think we’re going to be buying coffee at Starbucks with Bitcoin or XRP anytime soon. I think we’ve got to ask ourselves: What problem is that solving? You were talking about paying for the day spa bill and how you do that, but I think in some ways the friction – fiat currency, the US dollar in this case works pretty well, and so we need to make sure it’s better than that before we talk about it as a currency…
 

Brad Garlinghouse

CEO, Ripple

According to Garlinghouse, cryptocurrencies can be used in the st way in international payments and as a means of preserving value. This is especially true of crisis and weak economies, with a high level of inflation. He noted that the average annual inflation of the currencies of countries outside the G20 is about 6%.

There are economies where the fiat currency is at best a weak currency. And in those contexts, if I were a consumer experiencing hyperinflation – would you rather hold a cryptocurrency or your fiat currency? And in a lot of those cases, you’re seeing people take their dollars, or not dollars, pesos of various sorts, and saying, ‘I’d rather hold this because it’s a better asset to hold in terms of its potential appreciation and lack of inflation.
 

Brad Garlinghouse

CEO, Ripple

The head of Ripple stressed that cross-border payments are the sphere in which cryptocurrencies can be an ideal solution. He also noted the Ripple, which allows to conduct international transactions "almost in real time". This will help many companies save time and resources.

We had one of the largest banks in Australia, the CEO told me that 40% of all of their consumer wire transfers result in a customer service phone call. The frustrating thing for the bank is not only do they have to absorb the cost of taking a customer service phone call, they also deliver the news that they don’t know wait a couple more days it’ll probably be there.
 

Brad Garlinghouse

CEO, Ripple

Earlier, the Northern District Court of California rejected a class action lawsuit filed by investor Ryan Coffey against Ripple Labs Inc. on behalf of everyone who bought XRP tokens after January 1, 2013. The company was accused of illegally manipulating the price of XRP.