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The publicly-traded risk management firm FRMO Corp. is making the case for XRP.
In its latest letter to shareholders, the firm outlines its bullish stance on the crypto markets and specifically outlines XRP as a unique digital asset due to the fact that it’s not mined and is deflationary in nature.
“XRP, itself, is one of the more intriguing currencies, as it is explicitly deflationary. There is a modest cost for transacting in XRP, which is not actually paid to any intermediary. The fee, which is a very small fraction of a unit of XRP and which is used to protect the network, is simply destroyed. Therefore, the number of XRP units is constantly decreasing.”
XRP has a total supply of 100 billion coins, and each time an XRP transaction is sent, 0.00001 XRP is burned. The firm says that could become a factor in XRP’s value proposition if the coin is widely adopted in the mainstream.
“If the transaction velocity of XRP were to rise greatly, the number of currency units would decline greatly, thereby creating a substantial return even if the coin itself did not experience an increase in market capitalization. It would, however, experience an increase in value per unit.”
FRMO says its private partnership investments now hold positions in Bitcoin and many of the top 10 largest crypto assets by market cap.
The firm is also mining Ethereum (ETH), Ethereum Classic (ETC), Zcash (ZEC), Litecoin (LTC) and Bitcoin Cash (BCH).