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San Francisco-based Ripple Labs has just completed a $50 million investment in MoneyGram. The funds will help support the use of On-Demand Liquidity, a global payments product that uses XRP.

Ripple first committed to the investment in June of this year. It now owns almost 10 percent of the company’s outstanding common stock.

Ripple’s $50 Million MoneyGram Investment Hasn’t Made XRP Pump Despite Apparent Use

Blockchain payments startup Ripple Labs has just invested a further $20 million in US money transfer company MoneyGram. In June, Ripple pledged $50 million total and made an initial payment of $30 million. The recent subsequent payment, announced via a press release earlier today, concludes the commitment.

The $20 million bought MoneyGram equity at a considerable premium over the current market price. Currently just over $3, the San Francisco firm paid $4.10 for each share. Ripple now owns 9.95 percent of the company’s outstanding common stock of the company, and approximately 15 percent on a fully-diluted basis including non-voting warrants held by Ripple.

The money is expected to support MoneyGram’s continuing use of Ripple’s On-Demand Liquidity service. The global payments product uses the Ripple-linked digital asset XRP to make almost instant payments at an incredibly low cost.

MoneyGram chair and CEO, Alex Holmes, said of the ongoing partnership between the two companies:

“Partnerships with companies like Ripple support innovation and allow us to invest in creating better customer experiences. I anticipate furthering our growth into new corridors and exploring new products and services.”

He also commented on initial successes using the On-Demand Liquidity product. MoneyGram is reportedly now using the service to move as much as ten percent of its Mexican Peso foreign exchange volume. It is also already using On-Demand Liquidity in Europe, Australia , and the Philippines.

Ripple CEO, Brad Garlinghouse, said he was encouraged by how much progress had been made since Ripple made its first investment in MoneyGram this summer. He also stated:

“Digital assets and blockchain technology have the potential to make a tremendous impact on cross-border payments – MoneyGram and Ripple is an example of that.”

Despite the fact that XRP appears to be being used more for cross border settlement, the price of the crypto asset has not fared especially well versus the rest of the market in recent weeks and months. Despite its apparent usage by MoneyGram, the value has remained fairly constant in terms of Bitcoin and has dropped in tandem with other digital assets lately in terms of dollar value.

XRP price has not yet benefited from apparent MoneyGram usage.

 

Related Reading: Why Bitcoin Price Has Upside Potential Despite Plunge to $6,600

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Rick D. , 2019-11-25 22:00:09

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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