Ripple has once again made headlines for its substantial sales of XRP. These recurring large-scale transactions have raised questions about Ripple’s strategy and the future of XRP. Let’s delve into the reasons behind Ripple’s continued selling of XRP and explore why crypto enthusiasts suggest Bitcoin Spark (BTCS) is a more promising alternative.
What is XRP?
XRP is a cryptocurrency that Ripple created. It was designed as a bridge currency to streamline and expedite cross-border transactions, emphasizing efficiency and affordability. It operates on the XRP Ledger, a dedicated blockchain, and relies on the Ripple Transaction Protocol (RTXP) to ensure smooth and swift transaction processing. XRP has a limited supply of 100 billion tokens and was pre-mined by the Ripple team, unlike other cryptocurrencies. Additionally, XRP’s network is somewhat centralized, as a more limited group of validators oversees the transaction validation process.
Why does Ripple keep selling its holdings?
Several XRP transactions that, when combined, make up a staggering amount of close to half a billion XRP were spotted by the popular crypto tracking service Whale Alert on 30th August 2023. The crypto tracker spotted three transfers, carrying 424,018,481 XRP, 31,000,000 XRP, and 27,600,000 XRP. Of these three, Ripple was the second one, as it moved 31 million XRP to an anonymous wallet address, which XRP-focused platform Bithomp shows also belongs to Ripple. The biggest transaction was made between two anonymous wallets, which some suggest could be transfers being made by the same crypto whale. Also, an unknown wallet owner transferred 27,600,000 XRP to the Bitstamp exchange, which Bithomp identified as Ripple Labs.
Ripple keeps selling its XRP holdings for several reasons. One primary motive is to support its On-Demand Liquidity (ODL) platforms. By selling XRP on the open market, Ripple can generate liquidity, which is essential for facilitating cross-border payments. Additionally, Ripple uses these sales to build robust XRP markets, ensuring the availability of XRP for financial institutions and market participants who rely on the cryptocurrency for their operations. However, Ripple’s sales of XRP have also faced criticism.
Bitcoin Spark is a new crypto project that aims to bring new applications to the blockchain while maintaining decentralization and enhancing security, speed, and scalability.
The Bitcoin Spark network uses its proprietary mechanism known as the Proof-of-Process (PoP). The PoP rewards users for confirming blocks and contributing processing power to the network. Bitcoin Spark combines the PoP with an algorithm that exponentially reduces rewards per additional power to ensure an equitable distribution of rewards. Additionally, the network will have a massive number of nodes, which will enable it to accommodate more validators within its network.
The team behind Bitcoin Spark will provide an application that allows those with Windows, Android, iOS, Linux, and Mac OS devices to participate in network validation. Users will be required to install and provide access to their device’s processing unit to start validating transactions. The app will create a separate virtual environment that doesn’t interfere with any other part of the device and will automatically adjust the processing power used to account for overheating, battery, and concurrent usage needs. This opens up Bitcoin Spark’s network validation to essentially anyone with a smart device.
The miners’ processing power will be safely rented out to the network’s clients as remote computing power. The clients will be required to pay with BTCS, which provides an additional source of income to network validators and real-world utility to BTCS.
BTCS has a maximum supply of 21 million, with 78.33% being allocated to network validators and 0.24% to the team, promoting decentralization. 2.38% will be allocated to pre-network launch liquidity pools and exchanges to ensure early liquidity. The remaining 19.05% will go to the ongoing Initial Coin Offering (ICO). This offers believers in the project a chance to get BTCS ahead of the network’s launch. It comes with benefits, such as discounted prices and the potential for unprecedented gains. The ICO is currently in Phase 4, selling BTCS at $2.25 and offering a 10% bonus. Several crypto analysts suggest the ICO is a great option for those who missed out on early Bitcoin.
Bitcoin Spark’s commitment to decentralization positions it as a better choice for those looking for a reliable and censorship-resistant cryptocurrency.
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