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Flare Networks Announces Smart Contracts For Litecoin

Ripple’s late 2020 rise was due partly to a massive airdrop of Flare (FLR) tokens. Now, the smart contract solution is actually adding support for Litecoin (LTC). An FLR airdrop to Litecoin users is actually in the works.

XRP wallets included in the December snapshot will receive a Flare tokens (worth a great amount of money, potentially).

In a Jan. 8, 2020 tweet, Flare says that they will “reduce” the number of Flare tokens for the project’s founders by five billion. This extra will be distributed to “Litecoin participants.” The Tweet promises clarification in the coming week.

A Flare for airdrops Tokens on the Flare network, known as Spark, will be used for governance and as collateral following the expected token drop in Q2, 2021. The business plans to bring smart contracts to Ripple’s XRP. Previously, Ripple was seen as a vehicle for funds transfer, and Flare claims that Spark tokens will add value.

With this tweet, the company is actually announcing what was somewhat unexpected: that the network will support other cryptocurrencies besides XRP, namely Litecoin.

Flare received a large amount of hype and press before the December snapshot for the airdrop to XRP holders.

For what it is worth, the company is naming their FLR tokens XFLR tokens (for XRP) on their site. There can probably be LFLR tokens for Litecoin. But it may not stop there. Flare could add support for other cryptos.

The rationale for choosing to integrate with Litecoin, over some other similarly sized digital assets, may have come right down to the fact that after XRP, LTC was the next biggest asset currently with no smart contract capabilities.

The Litecoin Foundation has stated it is “very excited to see the capability of smart contracts and interoperability coming for Litecoin through Flare.”

This also opens up the possibility of more such integrations that would bring the DeFi ecosystem to all non-ETH coins in the near future.

Flare has said it may support other networks in the future, but this was given little attention. Support for, say, the Bitcoin network could have implications that are huge and give ETH a run for its money.

Smart contracts and Ethereum competition? The short version of the purpose of Flare is actually to facilitate smart contracts on protocols that don’t have them built in. Flare is backed by XRP, and the airdrop to most XRP-hodling wallets cast Flare into the spotlight.

The very last several weeks have seen insane interest in Ethereum, and as the time tested and secure smart-contract chain, that is no surprise. The #2 crypto may have new investors interested in case they feel like they “missed the boat” with Bitcoin.

But the tech backing Ethereum’s value is the smart contracts. Though there are actually lots of other similar protocols that are potential rivals (DOT, EOS), ADA, Ethereum still reigns supreme.

Nevertheless, if other networks (like XRP or LTC) could support smart contracts, that would widen their appeal. In case these protocols could be interoperable via the Flare network, that would be a coup for Spark tokens (Flare hasn’t suggested they’ve plans for this).

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Cryptocurrency News Ripple News

Binance To Delist XRP Trading On January 13, 2021

XRP continues to make the news. We’ve previously reported on the lawsuit that the Securities and Exchange Commission filed against Ripple, causing a major price crash in XRP.

Then Bitwise axed XRP from its crypto index fund.

That was followed by Bitstamp suspending trading in XRP for all U.S. residents.

Ripple’s lawyers were busy during all the flurry preparing a response to the SEC lawsuit.

Maybe it was the holidays, maybe it was wishful thinking, but along the way investors developed some hope that the worst of the bad news had already hit and bid up the price of XRP in anticipation of better days ahead.

Alas, it was not to be as more bad news just crossed our desk. Binance, the world’s largest cryptocurrency exchange, has announced that it is delisting XRP trading for U.S. residents beginning on January 13, 2021.

A statement on the company’s website reads:

Effective Wednesday, January 13, 2021 at 10am EST, XRP will be delisted from Binance.US. XRP trading and deposits will be suspended. 

When will XRP investors get a break from the barrage of bad news?

You can read the full statement here.

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Blockchain News Cryptocurrency News Ripple News

Ripple Speaks Out Against The SEC Lawsuit

We’ve reported that on December 22, The Securities and Exchange Commission (SEC) has charged Ripple — the company closely associated with the cryptocurrency XRP — along with its executives Brad Garlinghouse and Christian Larsen for selling over $1.3 billion worth of XRP as securities to the public.

The fallout was immediate with investors dumping XRP causing a 3-day crash of more than 50%.

Bitwise eliminated XRP from its crypto index fund.

Bitstamp suspended trading in XRP for U.S. residents.

As to be expected, Ripple has something to say about the SEC charges.

Ripple’s CEO Brad Garlinghouse tweeted that the SEC is unjustifiably attacking crypto and blasted chairman Jay Clayton’s decision to sue his firm right before the holidays.

“Jay Clayton is taking notes from the Grinch this holiday season, leaving the actual legal work to the next administration,” Garlinghouse said, referring to the chairman’s departure at the end of Trump’s presidential tenure. 

Ripple has formally responded with a 6 page statement that states:

A. The SEC’s theory, that XRP is an investment contract, is wrong on the facts, the law and the equities.

B. To prove its case amounts to an unprecedented and ill-conceived expansion of the Howey test and the SEC’s enforcement authority against digital assets.

C. The SEC’s theory that XRP is an investment contract ignores the economic reality that XRP is, and has long been, a digital asset with a fully functional ecosystem and a real use case as a bridge currency that does not rely on Ripple’s efforts for its functionality or price.

D. XRP is a currency. XRP is similar to bitcoin and ether, which the SEC has determined are not securities. 1. By alleging that Ripple’s distributions of XRP are investment contracts while maintaining that bitcoin and ether are not securities, the Commission is picking virtual currency winners and losers, destroying U.S.-based, consumer-friendly innovation in the process.

E. This case is distinguishable from the Initial Coin Offering (“ICO”) and/or Simple Agreements for Future Tokens (“SAFTs”) cases that the Commission has brought previously, which involved no developed ecosystem or established utility for the underlying asset, and where the tokens were sold directly to purchasers by the issuer based on promises of profits and ongoing efforts that were articulated in white papers and other forms.

You can read the entire Ripple response here.

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Cryptocurrency News Ripple News

XRP Surges More Than 40% On Christmas Day

Just as easily as XRP can drop 40% in one day, it can also rise 40% in one day:

The price of XRP crashed more than 50% this week after the SEC filed a lawsuit against Ripple — the company closely associated with XRP — along with its executives Brad Garlinghouse and Christian Larsen for selling over $1.3 billion worth of XRP to the public.

As of early morning East Coast time in the U.S., the price of XRP has jumped more than 44%, providing XRP crypto bulls with a much welcomed Christmas gift.

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Cryptocurrency News Ripple News

Bitwise Crypto Index Fund Axes Its XRP Holdings

Bitwise Asset Management, a leading crypto fund manager since 2017, issues this release to announce that the Bitwise 10 Crypto Index Fund (OTCQX: BITW) (the “Fund”) has liquidated its position in XRP.

On Tuesday, December 22, the U.S. Securities and Exchange Commission (“SEC”) filed an action in the United States District Court for the Southern District of New York alleging, among other things, that XRP is a security subject to the registration requirements of the federal securities laws.

The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws. Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.

Prior to the sale of the asset on December 22, 2020, XRP was approximately 3.8% of the Fund. The Fund liquidated its position and reinvested the proceeds in other cryptocurrencies for its portfolio.

Bitwise is issuing this release in accordance with the disclosure obligations of OTCQX®. The Fund’s Annual Report, published to satisfy the Alternative Reporting Standard disclosure guidelines for OTCQX® and OTCQB, discloses the significant risks associated with an investment in the shares.

Investors are encouraged to read the Annual Report and carefully consider these and other risks, including the fact that if any of the assets held by the Fund are determined to be a “security” under federal or state securities laws by the Securities and Exchange Commission (“SEC”) or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for the Fund and the BITW shares.

Bitwise Asset Management is a leading provider of crypto index and beta funds. Based in San Francisco, Bitwise’s team combines expertise in technology with decades of experience in traditional asset management and indexing—coming from firms including Facebook, Google, Wealthfront, BlackRock, Fidelity, Deutsche Bank, IndexIQ, and ETF.com. Bitwise is backed by leading institutional investors and asset management executives, and is a frequent commentator on crypto in the press. It has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, The Wall Street Journal, The New York Times, and many other leading publications. The firm is a trusted partner to financial advisors, RIAs, multifamily offices, hedge funds, and other professional investors as they navigate the crypto space.

Recently there has been an interesting development in the world of the futures and options markets; the creation of the new futures and options marketplace called the “Bitcoin Fund”. This is not your typical conventional futures broker dealer that you would deal with at your local brokerage firm. There are even a YouTube video showing the “how to get started” process that they have put together, as well as information on the dynamic nature of the market itself. As more businesses begin to explore the technology of virtual digital currency futures trading there will be those that venture into it’s very profitable business aspects.

Ripple Price Crash
Institutional Investors Shun Ripple After SEC Lawsuit
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Cryptocurrency News Ripple News

XRP Bulls Run For The Exits As Price Crashes 40% In One Day

Digital currency markets have seen some volatile action this week and during the last 24 hours following the SEC lawsuit against XRP , a number of coins shed a great deal of value. XRP itself has dropped a mind-altering 40% just in the past 24 hours. Coins like golem (GNT -19%), time new bank (TNB -17%), mossland (MOC -17%), and iot chain (ITC -16%) saw decent percentage losses as well.

At the time of publication, the entire crypto-economy is valued at $629 billion and because XRP lost so much value, bitcoin’s dominance index has risen above the 68% mark.

Just recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. and two of its executives. According to the U.S. regulator’s complaint, Ripple Labs “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.” Since then, the price of XRP fell like a rock, losing nearly 40% during the last 24 hours of trading sessions since the SEC announcement. The XRP plunge has also tugged a number of other crypto-assets down as well during the trading sessions on December 23.

Is this the bottom of Ripple’s price crash?

The truth is that traders need to wait to see what happens. Even if the market is in its third day of declines, it may not have reached bottom yet. In the meantime, this can be used to the XRP bulls’ advantage by capitalizing on the opportunity before others do, and dollar-cost-averaging down to the final bottom. As the old saying goes, “Buy when there is blood in the streets.”

XRP has certainly been bloodied in the last 48 hours!

In the weeks leading up to the XRP price crash, many publications were predicting a fundamental change in the way that money is moved.  While some of these currencies did experience significant drops in value, most experienced increases in their value from buyers eager to get a position in these currencies. Even after this panic selloff in Ripple, the trend lines for all of the other top cryptocurrencies remained highly bullish, indicating that this is a dynamic market with significant potential to move higher in the near term.

There are a number of factors that have combined to create a very volatile history for the leading currencies, and if you’re an investor looking to get in on the action, it’s important to understand how the XRP crash happened and what you can do today to maximize your profits. Among the top four currencies, ether and bitcoin are hanging on to their recent gains.

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Cryptocurrency News

A Cryptocurrency Airdrop Provides Free Coins

A Cryptocurrency airdrop comes in two forms – Manual and automatic. The former is meant for the general users to have a look over the way the distribution will be carried out and monitor the distribution process itself; the latter is meant for the use of experts in the field, those who know how to manipulate the distribution in order to manipulate the price change. Automated Cryptocurrency airdrops are sent to all the wallets with the help of email notifications. The first kind of distribution is called the Delayed Distribution and as the name suggests, will be sent after a short period of time. The second kind, the Post-dated Distribution will be sent to the addresses registered after the expiry day specified in the contract.

The Recent Ripple Airdrop

Essentially, Ripple is adding Flare Network, a new protocol, to the XRP ecosystem. Flare Network will bring more support to owners of XRP tokens, specifically adding decentralized finance or DeFi functionality to the XRP ledger. As part of this, Flare Network has a native token, Spark (FLR). Over the weekend, any holders of XRP tokens received free Spark tokens. And after driving XRP prices up, it appears that the SEC Ripple lawsuit is now weighing on the crypto.

Still not sure exactly what this airdrop news is all about? DeFi functionality represents cutting out the middlemen from direct purchases, loans, betting, insurance and various other types of transactions. Decentralized finance is one of the biggest appeals of the crypto space — and up until now, most DeFi applications have run on the Ethereum (CCC:ETC) platform.

Now that XRP wants to differentiate itself, many bulls will likely appreciate that through Flare Network, XRP will be able to sustain smart contracts and bridge itself to existing Ethereum applications. For Ripple then, the Spark (FLR) airdrop is a way of kick-starting an important milestone.

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Cryptocurrency News Ripple News

SEC Lawsuit Filed Against The XRP Firm

The Securities and Exchange Commission (SEC) has charged Ripple — the company closely associated with XRP — along with its executives Brad Garlinghouse and Christian Larsen for selling as well as the ongoing sale of over $1.3 billion worth of XRP to the public.

In the filing, the SEC charged since 2013 up to the present time, the defendants have sold over 14.6 billion XRP in return for cash or other consideration to fund Ripple’s operations. 

The SEC said Ripple never filed a registration document, and, therefore, it never provided investors with information all companies that sought investment from the public regularly supplied.

The SEC lawsuit alleges that Ripple broke securities laws by selling XRP directly to consumers across exchanges. According to the complaint filed by The Alliance for Financial Innovation (AFI), Ripple acted in bad faith by not requiring users to sign a disclaimer when offering the discounted currency. Additionally, according to the complaint, Ripple instructed investors to disregard the “Ripple Statement” which is issued by the SEC when promoting the discounted currency. In addition, the complaint claims that Ripple promoted the statement on its website and in emails to customers without disclosing that the advertising was deceptive and in violation of Securities and Exchange Commission (SEC) guidelines. As a result, for lack of any express requirement that customers sign a disclaimer or other agreement, investors have reportedly been sending money to the XRP office for their own private investments. As a result, due to the lack of a disclaimer, the SEC found that Ripple broke securities laws by advertising the discounted currency and not requiring users to purchase a product as a security in advance of making a purchase.

The SEC on Wednesday formally sued Ripple, alleging that its co-founder Christian Larsen and CEO Bradley Garlinghouse “created an information vacuum” that allowed them to sell XRP into a market that only had information they chose to share.

According to the SEC’s lawsuit, the duo ignored legal advice that the cryptocurrency could be considered an investment contract and therefore was a security.

“From a financial perspective, the strategy worked,” raising at least $1.38 billion “over a years-long unregistered offering of securities,” the SEC said. “Ripple used this money to fund its operations without disclosing how it was doing so, or the full extent of its payments to others to assist in its efforts to develop a ‘use’ for XRP and maintain XRP secondary trading markets.”

Larsen and Garlinghouse both fervently have denied the SEC’s allegations, publicly arguing that XRP is a currency and should not have to be registered with the SEC as an investment contract. The company has also questioned the lawsuit’s timing – SEC Chairman Jay Clayton is soon to step down – and said the U.S. government and other regulators had previously given XRP currency status.

CEO of Ripple