One of the biggest names when it comes to blockchain-related startups, Ripple, is making plans to invest in a new blockchain-focused fund. This fund will serve to encourage the development of new technologies, by using its software.
Ripple’s cryptocurrency has experienced massive volatility in 2018, and they currently own 60 billion of XRP out of 100 billion that presently exist. This Wednesday, they announced that $25 million in XRP would be donated into the fund for backing new technology developers.
Ripple expects progress
Apart from helping the development of the next Uber, Instagram, or Salesforce, Ripple also wants to see entrepreneurs discover a new way of using their blockchain tech. This is something that Ripple’s chief market strategist, Cory Johnson, said himself. He stated that there is money to be used, and wishes to encourage entrepreneurs who can solve problems by using XRP.
Ripple technology’s main current use consists of transaction settlements in real time and is mostly used by different banks. They’ve announced and also entered partnerships with some of the largest money transfer companies, like Western Union, MoneyGram, Santander, and even American Express.
However, Johnson stated that Ripple’s technology has a lot of potentials, and he compares it to the iPhone software. He says that a lot of other companies and startups might emerge from exploiting what Ripple has to offer, just like Uber did when it developed its iPhone app.
Johnson also said that he doesn’t know what XRP’s best use might be as of yet, but both he, and Ripple, in general, are hoping that it will be something that nobody even dreamed was possible.
Blockchain Capital’s fund and Ripple’s donation
The fund that Ripple plans to donate to was started by a venture capital firm called Blockchain Capital. This company’s dedication lies in blockchain technology, which records transactions and underpins cryptos across the network. They were part of the original funding for the largest cryptocurrency, Bitcoin.
As for Ripple’s cryptocurrency, XRP, its highest value was that of $3.84, and it was reached in January 2018. Since then, it experienced a significant drop in price, and this Wednesday it was priced at around 49 cents according to CoinMarketCap.com.
With that in mind, Ripple’s market cap can be estimated at around $29.4 billion. The company believes that, by using XRP to develop a new trend in technology, the value of this cryptocurrency might increase significantly. Johnson also stated that this would be the first fund that Ripple will contribute to, but it will not be the last.
Their contribution was made in XRP instead of US dollars. However, according to Johnson, this was not because the company wants to offload their digital currency. Despite the fact that their donation is quite large, it is still only a fraction of Ripple’s possessions.
As for Brad Garlinghouse, Ripple’s CEO, he is also interested in funding more startups interested in working with cryptocurrencies.