Ripple XRP can Now be Integrated into Any App!!! As easy as using AWS!!
In our daily news segment, we will give you guys a quick summary of the key news happening in the crypto sphere for today. First up, it looks like Facebook’s Libra Backers fear that Libra could taint their image among regulators – these brands include Visa, Mastercard, PayPal, and Stripe. Next up, it looks like there has been a leak concerning Facebook’s internal Q and A sessions regarding Libra’s early strategy. Third up, KIK is closing its messenger app and laying off staff to continue their fight and lawsuit with the SEC. And the fourth news for the day, Ripple’s Xpring is launching a platform that makes it possible for developers to integrate fiat and cryptocurrency payments into any applications. And finally, if you are trading on Coinbase, you should be happy as they are now offering crypto traders a 1.25% interest rate on USDC stablecoin holdings on an annual basis – yup. So you don’t have to be a trader on Coinbase to even make a profit.
The Market Today
Today, we can see a crypto comeback with many major coins in greens. Bitcoin is slightly gaining 0.84%, remaining at $8,339. Similarly, we can see an upward trend in ETH and XRP, who are both earning more than 2% each.
Libra backers hesitate to invest
According to Cointelegraph, many major Libra backers, including Visa, Mastercard, PayPal and Stripe, are reportedly in fear of Libra’s negative impact on their brand profile. They’re currently unsure of whether they wish to become paid-up participants or regarding the social network’s project. The four payment giants originally said that they wished to act as nodes for Libra, to which they paid $10 million. However, after witnessing a lot of backlash from regulators internationally, they seem to be having some cold feet. According to Bloomberg, the payment giants believe that Facebook exaggerated claims that regulators were comfortable with Libra. A Stripe spokesperson, however, appeared to deny any issues between the company and Facebook, noting that,
“Nothing has changed with our involvement with Libra since we came on to participate.”
Facebook is still hoping to move forward with the official signing ceremony of the Libra Association’s charter on Oct.14 in Switzerland, where the non-profit Association will anchor in their would-be members’ obligations.
Facebook internal meeting records and texts are leaked
A recent leak of Facebook’s internal meeting revealed their upcoming plans and early strategy for the Libra token. The newly leaked audio from Q&A sessions between Facebook’s CEO and employees which was first publicized by The Verge, recorded audio and text from two internal meetings held at Facebook in July. Mark Zuckerberg devoted a large part of the sessions to the company’s Libra cryptocurrency project. Zuckerberg stressed that both Facebook and the Libra Association want to do their best to solve many issues before the actual launching of the project. Zuckerberg noted,
“We want to make sure. We get that there are real issues. Finance is a very heavily regulated space. There’s a lot of important issues that need to be dealt with in preventing money laundering, preventing financing of terrorists and people who the different governments say you can’t do business with. There are a lot of requirements on knowing who your customers are.”
Zuckerberg also noted during the session that Facebook’s early strategy for courting regulators will be a long road because “this is what big engagement looks like.” Despite Zuckerberg’s awareness that it’ll be pretty difficult for regulators to accept the Libra token, last week, we noted in a previous video that Zuckerberg removed the launch date around the Libra token due to the sheer difficulty the token faced against regulators. We also mentioned yesterday that European regulators were worried that Facebook may be potentially creating a “shadow banking” system outside of sanctioned financial markets. In a tweet in response to the leaked audio, Senator Elizabeth Warren, a crypto critic, criticized:
“What would really “suck” is if we don’t fix a corrupt system that lets giant companies like Facebook engage in illegal anti-competitive practices, stomp on consumer privacy rights, and repeatedly fumble their responsibility to protect our democracy.”
Kik takes the battle with the SEC to the next level
The Canadian messaging app KIK has shut down its core product Kik Messenger and terminated 80% of its employees in an effort to continue legal battles with the SEC. According to Kik CEO Ted Livingston, the move is a result of the SEC Lawsuit as it is, unfortunately, draining the company’s funds. For those who are unaware, Kik ran an ICO in September 2017 – to which they raised almost $100 million for its Kin token. It was one of the most successful token sales for the year, but it only took four months before the rumors regarding SEC investigations began rolling in. In the first half of 2019, the SEC issues nine subpoenas, followed by nine testimonies in the latter part of the year. In November Kik was issued with a Wells notice, stating that enforcement action would begin against the company. According to the Wells Notice – it prohibits the sale of securities which haven’t been registered with the commission. Kik openly refuted against any wrongdoing. They sent in a 30-page letter in response to the Wells notice. There was a stalemate between both companies. In a report published in May, it looked like these ongoing negotiations cost Kik more than $5 million. Livingstone then revealed in a podcast at the launch of the Defend Crypto Fund set up to fund the ongoing battle that
“After spending 18 months and over $5 million trying to work with them, we just continue to be super frustrated by the lack of clarity […] and so we’ve put together defendcrypto.org, and what that’s saying is that the only way we’re going to get clarity is if somebody goes to court, and so we are prepared to do that.”
The fund currently has over $1.6 million in contributions which anyone can contribute in over 19 different cryptocurrencies. Here’s a really interesting comment by Ben Sauter from Kobre and Kim Law, where the consequences of fighting the action are pretty steep.
“One thing Kik’s closure highlights is the collateral damage of the SEC’s regulation-by enforcement mentality. This isn’t a fraud case; it’s just a question of whether securities were properly registered. Yet the company is now being forced to shut down a popular app and lay off many entrepreneurs. That’s a pretty drastic result.”
Ripple’s Xpring launched fiat and crypto payment platform
In the fourth news segment, we are going to discuss Ripple’s Xpring and how they are launching a platform that makes it possible for developers to integrate fiat and cryptocurrency payments into any application. According to Coindesk, the suite of services will provide you with an Xpring software development kit (SDK) allowing software developers to have a built-in XRP app, and also a variety of new tools to work on both XRP and Ripple’s Interledger Protocol (ILP). For those who are interested, this platform would function like Amazon Web Services, providing developers access to the code so they can run it themselves. Speaking about the advantage of the new platform, Xpring senior vice president Ethan Beard said:
“What takes a developer today a 100 lines of code to do a transaction on XRP ledger, using Xpring SDK cuts that down by 80 percent.”
This initiative will definitely help invest and grow a developer base around the cryptocurrency.
Coinbase pays 1.25% interest rate to users
It is super cool to see Coinbase now paying crypto holders 1.25% annual interest on their USDC stablecoin holdings. According to Coindesk, the new policy rolled out just yesterday. Coinbase product manager Paul Katsen commented on the news:
“We’re trying to build more ways for customers to grow their wealth on Coinbase. One of the things we know is a bad customer experience is having to move your money back and forth from Coinbase to a bank account [to] earn a little bit of interest in the bank account. We’re trying to bring some of these experiences together but make them crypto-first and on Coinbase.”
So how does it work? Any user of the exchange with at least one dollar’s worth of USDC in their accounts will automatically begin to accrue rewards on their holdings, without having to pay any additional costs or fees. All rewards earned on Coinbase will be paid out to users on a monthly basis. They can be tracked in real-time and used to buy other cryptocurrencies listed on the exchange. Coinbase director of product Max Branzburg stated that
“We can pull from the profits we generate as a business to reward our customers for storing their assets on the platform. We’re fortunate to be able to do that as a profitable business.”
And there you have it guys! So what are your thoughts regarding all the news?
Will Visa, Mastercard, PayPal or Stripe move forward and join properly join the LIbra association
Do you think Kik is making the right decision, going up against the SEC?
Do you think Xpring will help bring many developers onto the platform?
And are you a Coinbase user, and if you are, are you keen to gain 1.25% on your USDC holdings?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.