The XRP scene recently bore witness to a vibrant spectacle. Pitted on one side was the well-known XRP, grappling with Securities and Exchange Commission (SEC) appeal uncertainties that sent its price spiraling to a mere $0.62. The SEC’s appeal does hang like a sword of Damocles over XRP, and it’s likely this turbulence won’t dissipate till at least the first quarter of 2024.
On the other side, emerging victoriously, was the XRP20 stake-to-earn coin. The innovative cryptocurrency commanded investor attention with more than $1.84 million inflows, inching closer to its presale cap of $3,680,000. Expected 10x returns from crypto analysts could be real given the pre-sale tokens’ brisk purchase rate and price – a tantalizing $0.000092, 30x less than its all-time low. This is not a number to scoff at, especially considering XRP’s own increase of 220x from its lowest point.
Yet, the XRP20 strategy goes beyond just sheer price growth. Their bold utility-based model focuses on staking and burning – a sizable 40% of the total XRP20 supply was allocated for staking rewards. Coupled with a 0.1% burn mechanism that makes XRP20 increasingly scarce with every buy or sell transaction, it promises to safeguard investors’ interests.
Transparency is another feather in XRP20’s cap. They start at a much better footing compared to XRP’s controversial 2013 launch, with 40% of the total token supply available to the public. XRP’s launch was decidedly skewed, with 80% going to the company and the residual divided amongst the three founders.
The decentralized element of XRP20 provides it a distinctive edge over XRP’s centralized model. This Ethereum-based token, offering superior speed, affordability and security, is in sharp contrast to Ripple Labs’ centralized control over XRP release. XRP20’s highly decentralized nature, backed by over 700,000 block validators of Ethereum, unwraps new possibilities unlike XRP’s dependency on a potential single point of failure.
Nevertheless, for all the optimism surrounding XRP20, certain realities must be acknowledged. There lurks the continuous threat of burning a hole in one’s pocket from high-risk crypto investments. Not forgetting that, despite the numerous advantages, XRP20 is yet to shed its insignias of being a ‘2.0 version’, and still pales before Ethereum’s undisputed status as the touchstone of enterprise-ready blockchain technologies. For the time being, at least.
Indeed, an era of consolidation that respects the strong principles of complete decentralization is necessary going forward. A short pit-stop, likely, before XRP20 can take steady strides into the symbolic realm of returns that the crypto landscape fervently envisions.
Source: Cryptonews
