Ripple coin gained an historic upsurge in price after an announcement that came that the coin has signed a deal with the giant cash transfer Moneygram. There will be a test conducted to see if the cryptocurrency, XRP, can be used to transfer funds at a faster and cheaper rate than the traditional methods. The success of this test would determine a whole lot about the wide acceptability of the coin in the broad market.
The creator of bitcoin exchange, Mt. Gox, created this Ripple coin and the coin has seen a 31000% increase in the last year as against the 1200% increase on the side of the popular bitcoin. Following a rumor that filled the air, last week, that the coin was going to find its base also on the CoinBase platform for an easy to trade basis, the coin gained so much popularity.
The excitement that Ripple in the last week soared at that height and made its founder as rich as the Facebook founder,Mark Zuckerberg, but this joy was not going to be long lasting as the Ripple began to slide back from $3.60 (£2.64) to $1.60 (£1.17) in a little above one week.
Following the Moneygram announcement, we noticed a soaring in the price again and as at now, its at $2.20. The Ripple is actually seen as a close contender with the bitcoin, which for now is the biggest cryptocurrency owning to a market capital base of more than $250 billion.
Ripple coin, which is also known as XRP, allows banks and payment companies to make quick transfers no matter where they are located. The transaction fees of the Ripple compared to the Bitcoin is just a fraction of a penny while the bitcoin costs $30 for every transaction. Ripple responds more quickly in transactions than the Bitcoin which is extremely slow and this can afford you to make more transactions than Bitcoin.
Companies like UBS and Santander have already started using Ripple as means of payment. The shares of Moneygram increased yesterday significantly after the announcement by 10.5%. American Express also launched an instant blockchain-based payment using Ripple in November 2017