As a south African remittance platform, Xago was founded by Sonya Kuhnel (COO), Jurgen Kuhnel (CEO), and Mark Chirnside (Chairman) in 2016. by Naveed Iqbal October 9, 2019
Earlier today, a South African-based fintech firm, Xago, announced to the world the launch of its custom-built XRP exchange and Ripple gateway in the country.
According to information reaching our desk, the XRP only exchange connects to and uses Ripple’s network to exchange, send, and receive Ripple’s default virtual currency, XRP.
The Xago XRP exchange will only allow individuals who have a South African bank account to exchange, send, and receive Ripple’s XRP coin using the South African Rand and not any other fiat currency.
Going by the information that is available on our desk, the south African remittance platform, Xago, developed the XRP only exchange to create liquidity of XRP in the southern African nation. The platform aims to act as the market-making network for crypto fans and firms who wish to utilize and trade with Ripple’s default currency, XRP, and Ripple’s Ledger.
Ripple’s network is a viable option for Xago to realize its mission due to its efficient and effective settlement between wallets. Over the years, RippleNet has managed to create a good name for itself in transferring value between exchanges with little or no exposure to volatility.
Apart from increasing awareness of Ripple’s technology in Africa, the launch of the XRP only exchange marks a significant milestone that is sure to see the demand and price of XRP surge upwards.
Also, the South African-based fintech company, Xago, is looking to debut a settlement switch and an API product that will allow South African firms to accept Ripple’s default currency, XRP, in their businesses. Xago intends to make this a reality by utilizing the Ripple network that enables cross-border settlements, replacing the need for card technologies in retail.
Xago’s take on Ripple (XRP)
During an interview with BitcoinKE, the Chief Commercial Officer of Xago, Debra Roodt, said that the current transaction speeds of Xago’s XRP only exchange match those
According to information made available by Roodt, the custom-built XRP only exchange will also use users’ mobile numbers to act as identifiers contrary to using email addresses. By doing this, Xago is ensuring safe system accessibility to its users, reducing compromising issues, and heightened security. Consumers will be able to purchase goods using only their cell phones and their cell phone numbers, avoiding traditional payment rails.
The Xago cell phone number-based identity system is developed to connect user cell phones with the blockchain and retailers in one seamless experience. By charging lower transaction fees, the Xago platform is positioned to compete in the high stake retail environment enabling clients to come up with new and innovative products that will ultimately benefit the end consumer.
As a south African remittance platform, Xago was founded by Sonya Kuhnel (COO), Jurgen Kuhnel (CEO), and Mark Chirnside (Chairman) in 2016. The fintech company believes blockchain technology and more specific RippleNet has a significant role to play in transforming the payment sector.
While speaking on why they chose to focus on Ripple and XRP, Xago CEO Jurgen Kuhnel said:
“The industry is grateful for Bitcoin’s blockchain technology in managing to solve the double-spending problem by introducing the P2P payment solution without the need for a trusted 3rd party through mining. However, RippleNet managed to take this one step forward by building a faster and more cost-effective decentralized ledger that can compete with existing clearing and banking technologies.”
According to information reaching our desk, Xago is waiting for the XRP only exchange to realize sufficient liquidity to debut its settlement switch, which is positioned to connect retailers through the firm’s existing hardware and software platforms.
What this means is that where Xago will be in use, retailers will not need to use card networks — thanks to Ripple’s blockchain technology and its default cryptocurrency, XRP.
Ripple Predicts Asian Market Takeover And a Leaner Payments System In 2020
Determination to outdo the western markets has been a motivation behind why an ever increasing number of Asian organizations were adopting blockchain technology
Ripple’s focus on the cross border transaction market has been evident from all its updates and developments. But apart from this, the company has revealed that they want to create a more seamless payment network easily accessible to society.
In a recent Ripple blog post, Marcus Treacher, the Ripple SVP Customer Success spoke about what lies in store for financial markets in 2020.
The Ripple official had five major pointers as to what might change in the coming months. Treacher spoke about how the international payments market will continue to get faster and smaller by leveraging emerging technologies. He claimed that there will be more developments oriented towards consumer solutions and increased SME needs.
Marcus Treacher opined that major mainstream banks will delve fully into making cross border transactions faster than ever. This is expected to be done by reducing overhead costs, a major hindrance in the current scenario. To carry out this plan, banks are expected to use upcoming technologies like the Interledger Protocol [ILP].
Today Ripple works closely with a lot of institutional investors and the insights the company received are invaluable. Treacher predicted that in the coming months, banks will turn to cloud providers of banking technology to help reduce overhead costs. According to the Ripple blog:
“…cloud-hosted banking technology providers have developed new platforms with modern methods, pioneers of cloud service providers are ideally positioned to easily and inexpensively integrate into emerging blockchain networks, Artificial Intelligence (AI) engines and other emerging fintech categories—meaning the competitive advantage of innovative banks over slower-moving rivals will be intensified.”
Building consumer solutions on an international level was also a major area of interest for Ripple and other companies. One concept being tested out is in the field of instant cross border settlement. This would mean that an international tourist can conduct payments in a foreign country while trading in their native currency.
This would be done by tying up banks in multiple countries under the umbrella of a decentralized blockchain network. Micropayments have been tested out in small scale applications like Telegram and Line but the vision for the future is to scale it on a global level.
Small-to-Medium Enterprises [SMEs] are expected to be the biggest beneficiaries of the burgeoning decentralized economy. Marcus Treacher stated that if SMEs use blockchain technology, it will free up more capital for reinvestment. This is then expected to open up SMEs to new markets.
The Asian and the South Asian markets have taken multiple steps over the past few months to become major players in the decentralized economy. This determination to outdo the western markets has been a reason why more and more Asian companies were adopting blockchain technology. Treacher revealed that this rapid expansion will increase the digital asset trade rate coming in from Asia, which at present stands at a whopping eighty percent.
XRP Flips Key Resistance Into Support: Can Bulls Push Prices Higher?
XRP May Soon Explode Against Bitcoin, Analyses Show
Over the past few weeks, all cryptocurrencies — from Bitcoin, Ethereum and XRP to Digibyte, Waves, and Electroneum — have surged higher, gaining dozens of percent apiece as buying pressure has washed over the cryptocurrency market.
Altcoins have interestingly taken the front seat in this recent surge, seemingly denying a trend of Bitcoin-first price action over the past year.
This market price action, per CNN-featured cryptocurrency analyst Luke Martin, has allowed XRP’s pair against Bitcoin (XRP/BTC) to retake a key support level, which it has sustained for five days in a row. This pivot purportedly is “bullish,” meaning Martin is “expecting outperformance.”
It isn’t only Luke Martin that has pointed out the XRP/BTC trading pair is looking primed to break upwards.
Per previous reports from Ethereum World News, Michael Van De Poppe, contributor to CoinTelegraph and a trader at the Amsterdam Stock Exchange, revealed in a TradingView post published Wednesday that he expects for XRP/BTC to soon explode 170% higher.
He noted that the pair is on the verge of breaking out of a downtrend that has constrained prices since the start of 2019, before adding that XRP has held a very important historical support level against Bitcoin, suggesting bullish strength.
Poppe’s chart also pointed out that the recent price action is eerily reminiscent of an XRP/BTC break out in 2018, suggesting that a surge of dozens of percent can be had if history repeats itself.
XRP/USD Performance a Different Story
Although the prospects for XRP/BTC are looking positive per the above analyses, the outlook for the cryptocurrency’s performance against the dollar is looking harrowing.
A trader recently said on Twitter that it is “difficult for me to be bullish on Ripple right now.”
Backing his assertion, he looked to a chart of XRP against the U.S. dollar on a monthly basis. The trader depicted that despite the recent 35% surge off local bottoms, prices not seen in years, the cryptocurrency remains decisively below a key resistance that has been absolutely essential for the asset’s past two to three years of price history.
What’s more, it was actually rejected at the resistance level, suggesting the macro bear trend for XRP remains intact.
It is important to note that even if the cryptocurrency falls against the dollar, it can still rally against the dollar.
Photo by KaLisa Veer on Unsplash
Ripple’s On-Demand Liquidity Services Grew Six-Fold Last Quarter
Ripple Insights has published its quarterly markets report, which reveals that the company and its XRP token experienced mixed growth in 2019.
Ripple’s On-Demand Liquidity (ODL) services, which facilitate cross-border settlements, saw noticeable growth. These services handled 550% more value in Q4 of 2019 than they did in Q3. In raw transactions, those services saw a 290% increase in activity.
This growth is reportedly due to greater adoption. In less than a year, over 24 financial companies signed on for ODL, including Viamericas, FlashFX and Interbank Peru.
Ripple’s most notable client may be MoneyGram, which began to use Ripple’s services last August. This partnership has been particularly successful in Mexico, a market where MoneyGram is moving 10% of its volume through ODL.
Fewer Exchange Sales
Despite growing demand for ODL, Ripple sold relatively little the XRP token in Q4. Though this was partially due to a change in its measurements, Ripple also cut back its sales deliberately in order to act as “disciplined, responsible stakeholders.”
The company paused programmatic sales entirely in Q4, causing sales in that category to fall to zero. In a separate category, Ripple executed over-the-counter (OTC) sales with a “few strategic partners,” but significantly
The end result is that Ripple sold just $13 million XRP tokens over the course of Q4. This represents a five-fold decrease from Q4, when it sold $66 million worth of XRP.
Additionally, XRP’s daily trading volumes fell to $187 million in Q4. By contrast, the token’s daily volume in Q3 was $198 million, and its daily volume in Q2 was $430 million.
Token Supply and Demand
At first glance, these trends suggest that XRP is no longer highly sought after. However, Ripple seems to be releasing its XRP token into circulation in a calculated way.
It’s not yet clear if this strategy will affect prices positively. In the short term, XRP lost about 23% of its market value during the last quarter of 2019. By comparison, Bitcoin only lost about 14% of its market value during the same period.
It is possible that XRP token prices may not be a concern in the future: Ripple CTO David Schwartz recently proposed an XRP-backed stablecoin to help users avoid volatility.
In the meantime, practical applications targeted at consumers may drive up demand for the token. This week, the popular payment processor BitPay integrated XRP payments, allowing merchants to accept the cryptocurrency.