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WSJ: USD Stablecoins Could Help Prevent US Debt Crisis

Sam Wisdom Raphael
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WSJ: USD Stablecoins Could Help Prevent US Debt Crisis

The Wall Street Journal (WSJ) recently highlighted USD-backed stablecoins as a significant potential solution to the looming United States debt crisis.

Chainlink, a prominent decentralized Oracle provider, recently spotlighted the WSJ report on X, underscoring the role these digital assets could play in stabilizing the U.S. economy.

USD-backed stablecoins have amassed a substantial amount of U.S. Treasuries, surpassing the holdings of nations such as South Korea, Germany, Saudi Arabia and Norway. This growing influence positions stablecoins just outside the top ten Treasuries holders.

While Japan, China and the U.K. remain the three largest holders of U.S. Treasuries, collectively boasting over $2.7 trillion, WSJ reports that stablecoins could evolve into some of the largest purchasers of U.S. Treasuries due to their growing prominence and rising demand.

Stablecoins Could Prevent US Debt Crisis

This development comes at a critical time when the U.S. faces increasing financial strains. Significantly, the funding requirements for healthcare and retirement programs are ballooning, while traditional buyers of U.S. debt are retreating from the market. 

Additionally, the rise of digital solutions is facilitating the use of competing currencies in a multipolar world. The decentralized finance (DeFi) sector is experiencing rapid growth, but the emergence of stablecoins presents an opportunity for the U.S. economy to benefit from this exponential growth.

According to the WSJ, if the growth trend persists, stablecoins could emerge as a reliable new source of demand for U.S. Treasuries. This scenario mirrors the role of Eurodollars in the past and could significantly reduce the risk of failed Treasury auctions and prevent a looming U.S. debt crisis.

Currently valued at $160 billion, the stablecoin market is projected to reach a staggering $3 trillion by 2028. This growth trajectory surpasses the current valuation of the entire crypto market, which stands at $2.32 trillion. The immense potential of stablecoins has attracted attention and investment.

Ripple and Tether in the Spotlight

In April, Ripple, a key player in the space, announced plans to launch its USD-backed stablecoin, RLUSD, on the XRPL and Ethereum networks later this year. This upcoming move shows the increasing competition within the stablecoin market.

However, not all stablecoin issuers are navigating smooth waters. Tether, the issuer of USDT—the largest stablecoin with a $112 billion valuation—is facing regulatory challenges in the European Union. 

The impending implementation of the Markets in Crypto-Assets (MiCA) regulations has led to actions such as Uphold delisting USDT and Binance restricting access to it and other unauthorized stablecoins for customers in the European Economic Area (EEA).

Meanwhile, Chainlink’s Proof of Reserve (PoR) technology plays an important role in the stablecoin ecosystem amid its expansion. It ensures that stablecoins are backed by sufficient reserves, providing transparency and building trust among users of these digital assets.

Document Reveals Ripple Plans to Sell Only 25B XRP for Operations and Profit

Abdulkarim Abdulwahab
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0
Document Reveals Ripple Plans to Sell Only 25B XRP for Operations and Profit

The XRP Army recently unearthed a document revealing that Ripple intends to liquidate only a quarter of the XRP supply and distribute the balance for further development.

The report, authored by three Ripple employees from the markets and business development departments and Roman Leal from Goldman Sachs, reveals that Ripple intends to retain 25% of the total XRP supply.

Ripple Holding 25B XRP

Ripple highlighted that only 100 billion XRP tokens will ever be issued based on the network’s design, and it plans to retain 25% of the total issued assets to fund its operations and generate a profit.

This means Ripple schedules to keep a reserve of 25 billion XRP, presently valued at approximately $12.5 billion for company use.

Notably, Ripple’s sales of XRP have been in force for years and will continue for the next few years. Amid these sales, the company now holds about 4.87 billion XRP in spendable balance and 39.5 billion in escrow. This puts its XRP reserve at over 44.36 billion tokens.

Before the firm secured 55 billion XRP in escrow in 2017, it held 61.68 billion in spendable wallets. With around 44.36 billion XRP left, this implies that Ripple has liquidated over 17 billion XRP over the years.

75B XRP to Promote Development

Meanwhile, the document suggests that Ripple plans to distribute the remaining 75% of XRP’s supply to incentivize market makers, gateways, and consumers to use its Ripple protocol. Essentially, 75 billion XRP tokens are up for funding further XRP ecosystem development.

By doing so, the company aims to create a demand chain that should increase XRP’s value, given its finite supply. Currently, 55,618,185,850 XRP are in circulation.

It is worth noting that this document was published in November 2014, just a few years after the inception of the company. Pro-XRP X user SMQKE called attention to the paper in a recent post.

This revelation has sparked reactions from community members. Some have dismissed its relevance given that it is a decade old, suggesting the likelihood of Ripple deviating from the proposition in the document.

Shiba Inu Burn Rate Jumps 529% with 33M SHIB Burned in Last 24 Hours

Zabi
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Shiba Inu Burn Rate Jumps 529% with 33M SHIB Burned in Last 24 Hours

The Shiba Inu community has burned 33 million SHIB in the last 24 hours, boosting the burn rate by 529.72%.

In the past 24 hours, 33,281,367 Shiba Inu (SHIB) tokens have been burned across ten transactions, according to Shibburn, a community-driven SHIB burn tracker. This burn activity is part of an ongoing effort by the Shiba Inu community to reduce the crypto’s circulating supply. 

Following this disclosure, the community incinerated more tokens, pushing the total burn over the last 24 hours to 37,534,163 (37.5 million) tokens. This figure marks an impressive 529.72% increase from the amount recorded in the previous day.

Shiba Inu’s tokenomics reveal a substantial amount of tokens burned from the initial supply. A total of 410,727,009,502,240 SHIB has been burnt, significantly impacting the max total supply of 999,982,352,290,136 SHIB. The current total supply stands at 589,272,990,497,759 SHIB, with 583,313,391,776,342 SHIB in circulation. 

The recent burn transactions prove the community’s dedication to reducing SHIB’s circulating supply. Some notable transactions involved the incineration of 5,000,000 SHIB and 10,027,548 SHIB. 

Shiba Inu Community Seeks Broader Burn Initiatives

Beyond individual burns, the Shiba Inu community is actively exploring broader initiatives to further decrease the circulating supply. A proposal to burn SHIB tokens through major exchanges Binance and Coinbase has gained traction. 

An enthusiast, known as ‘Shiba Arab Army,’ launched a poll on May 19 to gauge community support for this initiative. With 419 votes cast and five days left, 95% of participants favor the proposal, while 5% are against it.

Amid all this, the price of Shiba Inu (SHIB) currently stands at $0.0000179, reflecting a 4.14% decline in the last 24 hours and a 17.52% decline over the past week. 

Pundit Unveils Why Investors Doubt XRP Could Reach $1,000

Sam Wisdom Raphael
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0
Pundit Unveils Why Investors Doubt XRP Could Reach $1,000

A community commentator outlines factors contributing to the pessimism around a potential XRP rise to $1,000, but remains confident in XRP’s prospects.

Notably, XRP has struggled below the $1 mark since December 2021. Despite spiking to $0.93 last July, it could not reclaim $1 due to buyer exhaustion. Discouragingly, XRP recently slipped below the $0.50 territory, further reducing its chances of capturing $1.

Despite these challenges, some analysts project a significant rally for XRP, with predictions ranging from $5 to an ambitious $200. More audaciously, a segment of commentators foresees a $1,000 price, a notion that has sparked widespread skepticism within the community.

An XRP community account known as “Common Sense Crypto” recently addressed this skepticism. He outlined why many doubt the possibility of XRP reaching the $1,000 milestone. His commentary discussed several factors that contribute to investor pessimism.

Factors Behind the Skepticism

First, there is a general lack of belief in XRP’s potential to move significantly, coupled with skepticism about whether any bank will adopt it. The belief that banks and financial institutions will adopt XRP on a large scale remains a contentious issue. 

While Ripple has made strides in forming partnerships with some institutions, widespread adoption is far from guaranteed. Competing technologies and regulatory challenges could impede the envisioned growth trajectory for XRP. Some critics argue that financial institutions might develop their own systems, rendering XRP unnecessary.

Historical market trends and the previous market cycle are also seen as unchangeable barriers. Additionally, the supply of XRP continues to be a concern for many investors. The total supply of 100 billion XRP means the XRP market would need a significant capital injection to sustain the market valuation that comes with a $1,000 price.

In addition, Ripple’s control over a substantial portion of this supply raises questions about potential price manipulation, further fueling skepticism. Some community members have claimed Ripple suppresses XRP price with its periodic sales. However, David Schwartz, Ripple’s CTO, has dismissed these claims.

Sustained Confidence in XRP to $1,000

Despite these narratives, “Common Sense Crypto” remains optimistic. He argues that true believers see the potential for XRP to reach four digits and beyond, dismissing the skeptical viewpoints as mere FUD. He says the choice is whether to believe these narratives or the purported facts about XRP’s potential.

A community member added that skepticism stems from the numerous challenges that need to be addressed for such a high valuation to become realistic. He stressed the importance of not solely relying on market cap as an indicator, noting the speculative nature of the current market. 

Currently, XRP trades at $0.49, marking a 1.62% drop over the past 24 hours. For XRP to reach the $1,000 mark from this level, it would need to surge by an astronomical 203,732%.

This would place XRP’s market capitalization at around $55 trillion, surpassing the value of all other assets in the world. Many argue that such a massive influx of capital into the market is highly unlikely.

Legal Expert Says XRP Could be a Security in California but Not in New York; Here’s Why 

Lele Jima
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Legal Expert Says XRP Could be a Security in California but Not in New York; Here’s Why 

Prominent legal expert Fred Rispoli highlights a major concern regarding XRP legal status, suggesting that the coin could be deemed a security in California but not New York. 

Attorney Rispoli issued this opinion while reacting to the recent ruling in the Zakinov civil securities lawsuit against Ripple. The case, which alleged that Ripple CEO Brad Garlinghouse violated securities laws via XRP offering in 2017, received a summary judgment decision yesterday.  

Court Dismisses 4 Charges Against Ripple But Sends 1 to Jury 

In the latest ruling, Judge Phyllis Hamilton tossed out four claims against Ripple, including the company’s failure to register with the SEC. However, she held that a jury would decide the case regarding whether Ripple offered and sold XRP as a security. 

Notably, Ripple’s counsel urged Judge Hamilton to follow the reasoning of Judge Analisa Torres in the SEC lawsuit, which held that the company’s programmatic sales of XRP on digital exchanges do not constitute securities. 

Judge Torres held that programmatic buyers of XRP had no expectations of making profits directly from Ripple’s efforts. This premise represents one of the prongs of the Howey test, which determines whether a transaction constitutes a security. 

Judges Reject Torres’ Reasoning 

Judge Hamilton did not adopt this reasoning, emphasizing that the case is a matter of law that a jury would decide. This is not the first time a U.S. District Judge disagreed with Judge Torres’ reasoning. Last year, the ruling judge in the SEC v. Terra lawsuit rejected the logic behind Judge Torres’ verdict. 

Notably, Attorney Rispoli urged crypto enthusiasts to advocate for federal legislation following the latest disagreement with Judge Torres’ logic. He pointed out that while XRP is deemed a non-security in New York, the coin could be classed as a security in California. 

Therefore, federal legislation is imperative to provide clarity and uniformity across different jurisdictions regarding the regulatory status of crypto assets, including XRP. 

In the meantime, Ripple’s CLO Stuart Alderoty believes Judge Torres’ reasoning remains valid despite the recent ruling in the Zakinov case. 

Shiba Inu Community Hints at Burning SHIB From Binance and Coinbase 

Lele Jima
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0
Shiba Inu Community Hints at Burning SHIB From Binance and Coinbase 

The Shiba Inu community seeks feedback regarding whether to burn SHIB from Binance and Coinbase. 

The community is actively seeking new ways to reduce SHIB’s hefty circulating supply, proposing an initiative that could potentially burn the token via leading exchanges Binance and Coinbase. 

A Shiba Inu enthusiast named ‘Shiba Arab Army’ launched an X poll on May 19, seeking user votes on whether they support the initiative to burn SHIB via Binance and Coinbase.  

The user behind the poll emphasized that the outcome is crucial in ‘completing the task.’ With five days left before voting ends, the poll has received 419 votes. While 95% of the participants agree with the initiative to burn SHIB from Binance and Coinbase, the remaining 5% disagree. 

Ongoing SHIB Burn Campaign 

Many Shiba Inu community members believe reducing the cryptocurrency’s hefty circulating supply could potentially increase the value of the remaining tokens. Consequently, they have resorted to sending huge amounts of SHIB to the official dead wallet, permanently removing the tokens from circulation. 

Shiba Inu, which launched with a total supply of 1 quadrillion tokens, now has only 583.31 trillion SHIB in circulation. The community and Ethereum co-founder Vitalik Buterin have burned a combined 410,727,009,502,240 (410.72 trillion) SHIB. While Buterin burned 410 trillion SHIB in 2021, the Shiba Inu community has destroyed over 72 billion SHIB since inception. 

Data from Shibburn confirms that 37,534,163 (37.53 million) were sent to the dead wallet over the past day, boosting the asset’s burn rate to 529.72%. However, the 37.53 million SHIB destroyed in the past day is only a fraction of the token’s hefty circulating supply. 

Will Binance Support SHIB Burns Like LUNC?  

Meanwhile, Binance is not new to supporting a token’s burn initiative. Recall that the exchange launched an initiative to burn LUNC using 50% of the token’s spot and margin trading fees. The move marks the exchange’s contribution to making victims of the Terra ecosystem collapse whole.  

As of May 1, Binance’s total LUNC burns hit a whopping 58.93 billion, valued at $5.6 million at the time. It remains to be seen how the Shiba Inu community hopes to burn SHIB via these top exchanges.

Notably, getting Binance and Coinbase to contribute to the burn campaign could drastically reduce Shiba Inu’s circulating supply and potentially bolster the token’s value in the long run. 

Shiba Inu Whales Withdraw 2,553,827,943,318 SHIB from Exchanges

Zabi
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0
Shiba Inu Whales Withdraw 2,553,827,943,318 SHIB from Exchanges

Shiba Inu whales transferred 2.55 trillion SHIB from exchanges, with 2.2 trillion worth $39.9M moved from Robinhood, and 353 billion valued at $6.6M from Binance.

Shiba Inu whales have been transferring their holdings from exchanges, stirring up interest and speculation among investors. On June 20, a notable transaction was reported by Whale Alert, involving the transfer of 2,200,000,000,000 SHIB ($39,945,400) from a wallet identified as Robinhood to an unknown recipient. 

The sender’s wallet, with an Ethereum balance of 96,161 ETH ($337,983,386), has been active for at least 748 days, while the recipient’s wallet, which holds 1.3 million ETH worth $4,791,228,783.80, has been active for 408 days.

Further Shiba Inu Withdrawals From Exchanges

Notably, the exchange withdrawals did not stop there, as Lookonchain reported a whale withdrawing 353.83B SHIB ($6.6M) from Binance 45 minutes before the Robinhood transfer. This whale currently holds a total of 838.87B SHIB ($15.5M) and has profited $6.12M from SHIB transactions.

These massive fund flows come at a time when Shiba Inu is showing signs of a potential price rebound, amidst a mild resurgence in the broader crypto market. On-chain analytics resource Arkham Intelligence previously indexed over 1.3 trillion Shiba Inu tokens moved by whale addresses by May 10. These transactions included movements across unknown wallets and into exchanges.

Repositioning Amid Market Volatility

Ultimately, the timing of these transactions is particularly notable, as they coincide with a period of increased market activity and interest in Shiba Inu. The transfer of such large sums from exchanges could indicate strategic repositioning by whales.

Meanwhile, the price of Shiba Inu (SHIB) stands at $0.00001797, with a 24-hour trading volume of $274,726,427. This represents a 3.01% price decline in the last 24 hours and a 16.52% drop over the past week.

Ripple Moves Out 250M XRP as Price Plunges Below $0.50 

Lele Jima
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0
Ripple Moves Out 250M XRP as Price Plunges Below $0.50 

On-chain data from Whale Alert shows Ripple has moved a substantial amount of XRP to an unlabeled address, as the cryptocurrency’s price trades below $0.50.  

The transaction, which occurred yesterday, saw a blockchain address affiliated with Ripple move 250 million XRP ($122.5 million) to an unknown wallet. 

Details About the Wallets 

Despite Whale Alert tagging the recipient wallet as unknown, data from Bithomp shows Ripple activated it on October 2, 2023. Before the recent transaction, the recipient address has been active, indulging in a series of transactions. 

This month alone, the recipient address has moved out 219,666,521 (219.66 million) XRP to multiple wallets. The latest outflow from the address, containing 50,000 XRP, occurred less than an hour after it received 250 million XRP from Ripple. 

Conversely, the wallet has also received 400 million XRP from Ripple this month, including the freshly indexed 250 million inflow. At press time, the address boasts a total balance of 270,959,000 (270.95 million) XRP.  

Meanwhile, the sending wallet now has a balance of 275.99 XRP following the 250 million XRP outflow.  

David Schwartz Addresses Concerns About Ripple XRP Sales

Notably, a transaction of this magnitude usually raises concern that Ripple might intend to sell some of its XRP holdings, thus mounting further pressure on the coin’s price. 

Investors have accused the company of negatively impacting the price of XRP through its continuous sales. For the uninitiated, Ripple releases 1 billion XRP from escrow monthly, with the company re-locking 800 million and using the remaining 200 million to cater to its expenses.  

Consequently, several investors have blamed XRP’s underperformance on Ripple’s continuous sales and hefty holdings. For instance, Dev Null Productions left the XRP Ledger ecosystem in March, citing Ripple’s unending XRP sales as the reason behind their exit. 

Reacting to this allegation, Ripple CTO David Schwartz claims it is almost impossible for the company to avoid selling XRP. According to him, Ripple has limited options to reduce its hefty XRP holdings, emphasizing that the company relies on sales as the primary approach to doing this.  

Currently, XRP is trading at $0.4894. This represents a 1.03% decline over the past day and an 8.33% loss in the monthly charts. Like many assets, the recent downturn did not spare XRP, causing the coin to plunge from a 30-day high of $0.5423 to a monthly low of $0.4636. 

Finance Expert Suggests $5,000 in XRP Can Still Grow to $2M+

Sam Wisdom Raphael
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0
Finance Expert Suggests $5,000 in XRP Can Still Grow to $2M+

Vandell Aljarrah, a financial commentator and co-founder of Black Swan Capitalist, implies XRP could still transform $5,000 to $2.9 million.

Aljarrah, who runs the Black Swan Capitalist finance platform with his brother Versan Aljarrah, suggested this in a recent post on X while discussing XRP’s historical price performance and its potential for more substantial gains during this bull market.

XRP’s Historical Performance

The market commentator called attention to the fact that investors who procured XRP in 2016 and held onto their tokens until the peak in 2018 would have seen their modest investments surge to millions. Notably, market data confirms that XRP traded at a price of $0.0065 in January 2016.

It continued to record a series of declines and upswings from that month till the bull run took shape. When the bulls introduced buying pressure from 2017, XRP then recorded an exponential price surge from the $0.0065 in January 2016 to the all-time high of $3.84 in January 2018, marking a 58,976% spike within just two years. 

If a market participant had purchased $5,000 worth of XRP in January 2016, he would have procured 769,230 tokens. These 769,230 XRP tokens at the all-time high of $3.84 would have been worth $2.95 million. This investment move translates to a profit of over $2.9 million in two years.

While XRP’s 2017/2018 price upsurge remains a pivotal part of its history, some investors fear it might not be able to repeat the uptrend. This is due to the current market valuation and the scarcity of extra capital inflow to the market. Notably, XRP would need a large amount of capital injection to record a similar price rally.

XRP Future Prospects

Despite this reality, Aljarrah remains highly confident in XRP’s future prospects. He suggested that, while investors see the previous surge as monumental, XRP is poised to engineer a more substantial price growth next year, noting the potential effect of increased utility for XRP.

Interestingly, the XRP Ledger’s DeFi ecosystem is witnessing immense development, which could introduce more utility for XRP, its native token. The network welcomed AMM functionality in March. Since then, it has seen multiple AMM pools go live, with TVL recently surging past 15 million XRP.

Moreover, Ripple is now looking to introduce a lending protocol native to the XRPL. The firm is also on the verge of launching an EVM sidechain for the network. In addition, the XRPL could also welcome a native stablecoin before the end of the year. All these developments could bolster XRP’s utility.

Aljarrah believes this growing utility increases XRP’s chances of recording another monumental surge. If the 2017 to 2018 uptrend repeats, XRP would only transform $5,000 in XRP today to $2.95 million if its price increases 58,915% to $289. Notably, analyst Javon Marks has repeatedly predicted an XRP rise to $288.

Here’s How Much XRP You Need to Be A Millionaire If XRP Hits $500 or $1,000

Abdulkarim Abdulwahab
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0
Here’s How Much XRP You Need to Be A Millionaire If XRP Hits $500 or $1,000

XRP investors need initial investments of a few hundred dollars to realize $1,000,000 should the asset trade between $500 and $1,000.

During this latest market correction, XRP emerged among the few assets that stood their ground. While Bitcoin drained the altcoin market of past profit, XRP mostly maintained a value between $0.49 and $0.5, boasting a positive one-week performance.

This performance has further bolstered the confidence of enthusiasts who believe XRP will someday stand out, potentially engineering an aggressive rally similar to the one six years ago and ultimately making them millionaires.

This analysis explores the XRP amount an investor would need to become a millionaire if the asset reaches ambitious future price targets of $500 or $1,000.

XRP You Need to Be A Millionaire If XRP Hits $500 and 1,000

At the time of writing, XRP exchanges hands at $0.4886, reflecting a 2.11% gain over the week. To achieve a millionaire XRP portfolio in a future where the trades at $500, one must hold 2,000 tokens.

As of June 21, it costs only $977.2 to acquire 2,000. Meanwhile, this modest initial investment stands to grow by 102,233% in years to come if bullish projections materialize.

On the other hand, investors with the more ambitious outlook of a $1,000 price point for XRP require a less demanding initial investment.

Specifically, one needs 1,000 XRP, valued at $488.6 today, to become a millionaire when XRP trades at $1,000. At that point, the investment must have grown by 204,566%.

When Can XRP Reach $500 and $1,000

Following XRP’s lawsuit victory in 2023, Citi banker Shannon Thorp projected that XRP could reach $500 within seven months. While this projection has gone unfulfilled, the optimistic outlook persists within the community.

In April, analyst BarriC suggested that XRP’s current value would be considered cheap by 2033, implying he anticipates much higher prices in the preceding years. Additionally, he argued for a $1,000 XRP within a decade. Another pseudonymous community pundit, JackTheRippler, also supports the $1,000 prediction, though he provided no specific timeline.

Meanwhile, the prediction platform Telegaon is more conservative, forecasting that XRP is unlikely to reach $500 or $1,000 within the next three decades. Instead, it proposes a maximum value of $105 by 2050.

It is worth noting that a $1,000 XRP puts the asset at a valuation of approximately $100 trillion.

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