Ripple has plans to invest in startups which can develop more potential uses for XRP, Ripple’s cryptocurrency. Back in December, with the bullish growth of bitcoins to $20,000 per token, XRP also saw a rise in value. Its collective worth reached nearly $128 million. But following the market crash in January that number fell to around $30 million. Currently, in terms of market capital, XRP is in third place following behind ethereum and bitcoin.
The reason behind such a huge drop also seems to be because XRP doesn’t find much use. Being a cryptocurrency marketed towards banks, it did fail to achieve its core proposal. Majority of its public customer base falls under cross-border remittance services which are trialing XRP, and it is just one of the digital currencies in their cash flow.
People blame the current predicament of Ripple is due to the volatile nature of XRP as a payment service. However, company CEO Brad Garlinghouse dismisses such accusations claiming that payment completion merely takes a few seconds and won’t be affected by market ups and downs.
According to Garlinghouse, the real reason behind the latency is something that will be solved with time, as soon as the technology becomes commonplace. He argues the once VoIP was ridiculed, but now it has become an industry standard.
As of now, Ripple is looking for ways to expands its cryptocurrency’s use cases, “We, Ripple, will stay focused on solving that institutional(cross-border payment) use case, but we would certainly partner with companies that are looking to use XRP in lots of different ways,” says Garlinghouse. With the right partners giving the cryptocurrency some alternative uses, it will gain some meaning.
One such company, a San Francisco-based startup, Omni has already caught Ripple’s attention. Omni will use Ripple technology to offer storage and rental services for goods have gained a $25 million investment from the cryptocurrency company and will incorporate XRP into their service.