Crypto News Updates

3 Major Positives From the Crypto Market Meltdown

3 Positive Takeaways From the Crypto Market Meltdown

Yesterday’s meltdown of the crypto markets was not entirely negative, Bitcoin, although price dropped substantially, has remained resilient through its first financial crisis.  The network has stayed up, and even made a higher low than 2018, and the halving is less than 60 days away.

  1. Crypto Markets Weather First Major Global Crisis
    Even though we saw extreme devaluations in the crypto market this week, as weak hands capitulated en masse, Bitcoin and other crypto-assets did not hit zero. This is very significant considering that Bitcoin and cryptocurrency were born out of the financial crisis of 2008, yet haven’t been tested by a serious financial threat in the 12 years since.

When #Bitcoin survives this people will know it can survive anything. It will be just another chapter in the book.
— Mr.Hodl🌕🍿 (@MrHodl) March 13, 2020

Many investors were fearful that Bitcoin would print a new low below $3K this week, yet the market actually bounced from the 200 day MA with a higher low. This means that the upward trend is still intact, and that the crypto markets are more resilient than many previously thought. Satoshi designed Bitcoin to be anti-fragile, and to weather the storms of unchecked fiat printing. Considering the US’ announcement of a possible 1.5 trillion in stimulus, things are going according to Satoshi’s master plan.
2. Everything’s Trading at a Major Discount Before the Halving
Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, etc. have not been at these rock-bottom prices since April of last year. Warren Buffet is famous for saying “be greedy when others are fearful”. Well, now is definitely the time to be greedy. If crypto didn’t die yesterday, then now is your chance to buy the biggest dip in over a year.

Wanna know how to get rich?
Buy cheap when everyone is scared. Then wait, and do nothing.
Sit on your hands. Smoke some cigars. Read some books. And continue to do nothing.
Sell when everyone is euphoric. Then wait, and do nothing.
Buy again when everyone is scared…
— Bitcoin Macro (@BTC_Macro) March 6, 2020

These fire sale prices are unlikely to last long, especially once the investors who panic sold yesterday FOMO buy back in before the halving. Now is the time when fortunes are made. Crypto hodlers remained calm throughout yesterday’s bloodbath. Although many altcoins lost substantially more than Bitcoin yesterday, they did not disappear entirely. Many traders will be accumulating more of their favorite alts, and most will likely have bought coins at extremely low prices. Yesterday, a lucky trader was fortunate enough to get partial fill on a LINK order at fractions of a penny per coin.
3. Strong Bull Markets Usually Follow Steep Corrections
Typically, after we have a massive bearish correction, like we saw yesterday, we tend to see a strong bullish resurgence in the months that follow. On December 10th, 2018, Bitcoin hit a low of $3121. By June of the same year, Bitcoin had a bullish breakout to almost $14,000.
Right now is the time that crypto whales are placing their long term positions for the post halving bull run that is sure to come. Bitcoin has commonly had 80+ % corrections that were followed by huge bull runs, which again “crashed” to much higher lows. At yesterday’s low of $3596, we were still $470 dollars above the prior low, the 200 day MA support held, and FOMO buying of the dip by hodlers of last resort caused a nice bounce. We might linger here for a moment, retesting the low to form a nice bottom, but the worst appears to be over. With the halving on the horizon, we may see new yearly highs sooner rather than later.
What positive things have you taken away from this latest crypto bear market? Let us know in the come below!

Images via Shutterstock, Twitter @BTC_Macro @@MrHodl
Source: Bitcoinist News

Crypto News Updates

Veteran Trader Predicts More Pain For XRP Holders

Veteran Trader Predicts More Pain For XRP Holders

Peter Brandt, a trader with over 30 years experience in the markets, has predicted that the bottom could fall out from under XRP. Brandt had previously made a vow not to post charting commentary on the asset because of constant harassment from the community, but today he made an exception.

Not Out of the Woods Yet
Peter Brandt has had a rocky relationship with the XRP community on Twitter recently. Last month, the trading veteran predicted that the Ripple asset could fall 25% to under $0.20, which received heavy criticism from the project’s loyal following. It turns out Brandt’s analysis was completely accurate, and the token’s price later unravelled to $0.16 a few days after.
As a result of the backlash he endured he publicly announced that he would no longer post XRP charts.

I periodically volunteer comments on various charts.
The rudeness and immaturity of XRP fans (crypto fans in general) is insulting and lacks civility
In the futures I will limit crypo charts to another social media group that actually seeks to learn
— Peter Brandt (@PeterLBrandt) February 20, 2020

Now, it seems he has changed his mind. Today, Brandt posted a new chart warning XRP investors that their cherished coin could fall even further. He did, however, refrain from predicting a particular level – only mentioning that there’s plenty of ‘space below’.

I am breaking a promise.
I said I would never again post a chart of $XRP
But, I thought you all might be interested in what it means to have …
"While space below"
— Peter Brandt (@PeterLBrandt) March 12, 2020

Almost every XRP investor since 2017 is underwater

Another way to look at is that almost everyone who has bought XRP since May 2017 has a loss. Now, that is impressive performance.
— Peter Brandt (@PeterLBrandt) March 12, 2020

Ripple CEO, Brad Garlinghouse recently came under fire for publicly admitting that Ripple would not be profitable if not for the company’s constant sales of XRP.
Members of the XRP community have already filed a class action lawsuit against Ripple for selling the tokens in an unregistered securities offering. They have even gone so far as to create a petition to stop Ripple from dumping XRP, on, and have threatened a hardfork.
Brandt’s observation that almost every XRP investor since 2017 is underwater on their investment should be an eye opener to holders, especially after the community leader Hayden, left the project, and sold her tokens.
Do you think XRP has more downside action to come? Let us know your thoughts in the comments!

Images via Shutterstock, Twitter @PeterLBrandt
Source: Bitcoinist News

Crypto News Updates

Crypto Trader Gets $0.0001 LINK Order Partially Filled on Binance

LINK chainlink

A trader who placed an order for LINK on Binance in January 2019, got extremely lucky when the asset flash crashed today on Binance. The trader’s order partially filled allowing them to purchase 900K tokens at $0.0001 each.

A deal so good, it feels like a steal

A "Set and Forget" stink bid that is over a year old partially filled on $LINK/USDT today at $0.0001 due to a large, single order market sell.
— Binance (@binance) March 12, 2020

An order placed on the first day that Binance offered LINK trading, January 16th, 2019 was partially filled today allowing a lucky trader to buy 900K LINK tokens for around $90 dollars. The Chainlink asset has been one of the leading altcoins of 2020, and was trading at $4.68 at the beginning of this month.
Currently, the token is priced at $2.69, down substantially after the crypto market crash that took place over the last 24 hours. It was during this market crash that LINK had an exaggerated flash crash of its own, bringing its price down 99% for a few moments during the highest point of volatility. The order was so old, it was placed before Binance had price band restrictions.

Just checked, the buy order was put in 2019-01-16, the first day the LINK/USDT pair was added. We didn't have the price band restrictions back then. We don't cancel user orders.
— CZ Binance 🔶🔶🔶 (@cz_binance) March 12, 2020

It was during the LINK flash crash that a lucky trader was blessed with 900K LINK tokens for the amazingly low price of around $90 dollars. This is an epic windfall, as the token had been soaring due to rising partnerships with many DeFi projects who are wary of oracle manipulation attacks.
LINK is a protocol for providing blockchain oracles to feed real-world data into smart contracts for DeFi platforms, DEXs and other blockchain projects that rely on data feeds for smart contract automation and execution.
LINK has become the blockchain oracle solution of choice
In the past month bZx, a DeFi platform, was attacked first by a flash loan attack, then by a second attack which manipulated a price oracle for a DEX, allowing the attackers to make off with almost a million dollars in Ethereum.
As a precautionary measure, many DeFi and blockchain projects have turned to Chainlink as a partner for more secure blockchain oracles. LINK has been one of the hottest altcoin tokens since last June, when their partnership with Google was announced.
Chainlink has also partnered with various other DeFi projects like Synthetix, a platform for issuing tokenized assets, Loopring, a DEX, Aave, a DeFi platform which pioneered flash loans, Ampleforth, a smart commodities protocol, and others.
LINK has become a leading indicator for the overall crypto markets, often leading other altcoins when a change in trend happens. It has also been one of the most popular altcoins among traders on social media.
What are your thoughts on this trader’s lucky LINK buy? Let us know in the comments!

Images via Shutterstock, Twitter @cz_binance
Source: Bitcoinist News

Crypto News Updates

Huobi and Bithumb Crypto Exchanges Back Online After Congestion

huobi crypto exchange

Huobi and Bithumb, two of the leading exchanges in Asia’s crypto markets were both paralyzed by congestion, during the early morning crypto flash crash. Both exchanges have announced that they were overwhelmed by traffic during the crash, but are back online now, operating normally.

Huobi is one of the largest crypto exchanges in the world, and the 4th largest by liquidity. Huobi has a global presence in crypto, with offices in key jurisdictions around the globe. They currently operate in the US, Korea, Japan, Singapore, Thailand, and Hong Kong.
As prices began to drop, Huobi was inundated with thousands of visits to their site overwhelming their servers, causing freezing and other technical issues.
They issued a statement on their website warning users that the Huobi app and Huobi global website were experiencing problems, but they also announced that the issue had been resolved and that the platform was once again online.
Bithumb, another popular Korean exchange, also experienced similar issues affecting deposits and withdrawals of Ethereum and ERC-20 tokens on their platform. They cited similar congestion issues caused by the market crash.

Thanks for your patience! All systems back to normal status.
— Bithumb (@BithumbOfficial) March 12, 2020

A few hours later, Bithumb tweeted that they were back online and that the platform was back to allowing withdrawals and deposits of ETH and ERC-20 tokens.
Not just the exchanges were congested because of the crash
Ethereum users were also battling congestion today, as the crash caused a flurry of on-chain transactions as traders panic sold or bought the dip. This rise in transactions caused gas prices to rise significantly, causing delays of up to 44 minutes for the first confirmation.
Many crypto traders were unable to complete transactions, or were forced to wait a lot longer than usual. USDT was also impacted by Ethereum’s congestion as there are now billions of Tether on Ethereum. The price decline also may pose trouble for those with value locked into DeFi platforms.
Bitcoin also suffered high of congestion as fees spiked during the crash, causing delays for confirmations of transactions. Bitcoin fees have subsided for now back to normal levels, although the mempool is still pretty congested at 17,575,970 bytes at the moment.
During the crash, the mempool was as high as 18,971,622 bytes earlier this morning. The delay for crypto transactions is still an issue unless you don’t mind paying a slightly larger fee.
Did you have any issues with congestion on a crypto exchange? Let us know in the comments!

Images via Shutterstock
Source: Bitcoinist News

Crypto News Updates

3 Reasons For Today’s Monster Crypto Market Crash

3 Reasons Why Crypto Markets Have Crashed Today

Bitcoin plummeted -29.71% overnight from yesterday’s high of $7967 to a low of $5600 in an epic sell off. The leading crypto has stabilized for the moment at $6065, but we may see further downside price movement as investors panic and a global recession looms.

Crypto Market Sees Catastrophic Losses
Bitcoin has had an apocalyptic sell off in the last 24 hours, while investors in many of the world’s financial markets are panic selling everything as fear and uncertainty from the impact of Coronavirus shakes the world financial markets. Even the safe haven investment of gold is down.
Bitcoin shed $22 billion overnight as investors pulled $68 billion from the crypto markets. In one hour Bitcoin had fallen by 17%. Let’s take a look at 3 major reasons for why the crash happened.
1. Traditional Markets Experience Worst Day Since 2008
Traditional markets are a trainwreck, the Dow Jones and S&P 500 have lost trillions in value in the last week. Bonds are tanking, as the yield curve risks going inverse. Goldman Sachs has declared the bull market over, and Oil has been plummeting due to a price war between Russia and OPEC.

Much of the fear and uncertainty surrounding the impact of Coronavirus on traditional markets has caused a sell off in riskier assets like Bitcoin as traders cover margin calls. The Fed has been increasing repo market operations to the tune of $175 billion per day to provide liquidity. President Trump has called for a huge stimulus plan to reassure the tumbling markets. Wall St. may shut down over fears of infection. We have a black swan impacting every aspect of the economy.
2. Bitcoin Market Cap Drops 50%
Bitcoin lost half its market cap since yesterday. Bitcoin’s market cap was $260 billion yesterday, and today its market cap sits at $110,780,057,889. This is a reduction in market cap of -57.69%. The rest of the crypto markets have fared much worse.
As the flash crash took place altcoin investors saw altcoins fall at an even more accelerated pace than Bitcoin. This caused many investors to flee to Bitcoin pushing Bitcoin dominance 65.3%. Every single coin on the first page of coinmarketcap is in the red at the moment. Other top coins have lost more than Bitcoin. Bitcoin Cash, Bitcoin SV, Ethereum, Binance, Tezos, Link, and many other leading altcoins lost 20-30% in the crash as well.
3. PlusToken Scammers Triggered the Crypto Selling Frenzy
The Plus Token scammers started dumping 13,000 Bitcoin which sparked the initial sell off. We reported on a huge movement of coins from wallets known to be connected to the Plus Token scam over the weekend.
The Plus Token wallets have been dumping around 12,000 Bitcoin per month, and each time they start selling they crash the price of the market. This latest round of Plus Token Bitcoin sales just happened to coincide with the coronavirus black swan event which has been wreaking havoc across the entire global economy. The virus is causing manufacturing in China to run at half capacity and is provoking fears of supply chain disruptions, as well as a global recession. The worst part is that the plus token scammers still have over 60,000 BTC to get rid off, according to blockchain data tracking the wallets containing the stolen funds.
What do you think was the biggest cause for today’s crypto market crash? Let us know in the comments!

Images via Shutterstock
Source: Bitcoinist News

Crypto News Updates

Tether HODL’ing Sees Rapid Increase, Where’d the Bulls Go?

Tether HODL'ing Sees Rapid Increase, Where'd the Bulls Go?

The number of new Tether addresses has spiked in the last 24 hours prompting some analysts to suggest we may have another flash crash to the downside. This theory is based on the idea that traders are cashing out to USDT, to avoid incoming volatility in the crypto markets.

Tether wallets see sharp rise

📈 $USDT Number of New Addresses (3d MA) increased significantly in the last 24 hours.
Current value is 707.875 (up 9.9% from 643.903)
View metric:
— glassnode alerts (@glassnodealerts) March 11, 2020

Bitcoin onchain data analytics firm, Glassnode Studio, has just tweeted an alert about the 9.9% increase in new Tether (USDT) wallets in the last 24 hours, suggesting that traders may be getting out of their BTC holdings to sidestep downside volatility.
They may be on to something, Bitcoin sits $7755 currently, after being rejected near the $8200 resistance level yesterday. The leading cryptocurrency has tried to recapture $8,000 several times, over the last 24 hours, but may be poised to make another move lower.
Bitcoin currently sits at the bottom range of its long term logarithmic chart, which tracks its parabolic price momentum, which historically has been a key area to buy a long position, especially this close to the upcoming halving.
bitcoin tether
Other data suggests that we may be near Bitcoin’s bottom, as the cryptocurrency sits near its minimum production cost, which is estimated to be around $7577 dollars. This refers to the costs miners must incur to mine a whole Bitcoin at current electricity rates and market costs for hardware.
Even with Bitcoin’s slump to the downside over the past two weeks, the long term bullish trend remains solidly intact. Current price action reflects similar market conditions with the prior two halving events, where Bitcoin declined leading into the block reward reduction.
Sentiment around Bitcoin remains bullish
Market sentiment for Bitcoin remains bullish despite the 26% drop in prices over the last two weeks. Mining difficulty recently increased and hash rates have been at all time highs. Usually, bullish price momentum tends to trail after rising hash rate.
The upcoming halving has been driving bullish price sentiment since the first of this year, with Bitcoin rallying until the second week of February. Even with the current price slump, Bitcoin has already been in a two year bear market, which means that seller exhaustion is a very real possibility.

Because seller exhaustion always takes place. The question is when. #bitcoin has been in a bear market for a very long time already. Timing is uncertain but many things are coming together. The halving is important. Govt & CB policy are important. Watch what is happening.
— BitcoinTina☣– "TINA" #bitcoin (@BitcoinTina) March 11, 2020

The larger macro economic picture for traditional markets looks bleak, with negative rates actively being discussed for the US, as well as the negative impact on supply chains from the Covid-19 outbreak.
The Fed and President Trump have called for emergency stimulus policies to be enacted and for financial bailouts for multiple industries which have been paralyzed by the epidemic. We have witnessed shortages starting to become apparent.
All of this is happening while Bitcoin stays within its Stock to Flow (S2F) model for price, which predicts that Bitcoin will rise substantially after the halving as reduced supply of new Bitcoin causes upward pressure on existing supplies.
Do you think this increase in Tether wallets imply more downside price action? Let us know in the comments!

Images via Shutterstock, Twitter @BitcoinTina @glassnodealerts, chart by BraveNewCoin
Source: Bitcoinist News

Crypto News Updates

New Bitcoin Model Predicts Bottom Prices With Insane Accuracy

New Bitcoin Model Predicts Bottom Prices With Insane Accuracy

Bitcoin’s PoW consensus mechanism is secured by consumption of electricity, this is what makes each newly mined Bitcoin have value. The newest model to predict Bitcoin price is based on this minimum Cost of Production (COP) for newly mined Bitcoin, and its accuracy is startling.

New model correlates with S2F and Bitcoin’s parabolic curve
In the Bitcoin white paper, Satoshi laid out his vision for how Bitcoin’s incentive structure for miners mirrored that of physical gold, and how it is mined in the real-world by gold mining operations.
The steady addition of a constant of amount of new coins is analogous to gold miners expending resources to add gold to circulation. In our case, it is CPU time and electricity that is expended
A new Bitcoin valuation model put forth by DataDater, relies on this aspect of BTC production to calculate minimum price per coin, by using the minimum cost of production.

The result is a frighteningly accurate prediction model of the absolute bottom for Bitcoin during bearish price swings. As it currently stands, it costs around $7577 on average to mine a whole coin, depending on electricity rates.
DataDater’s COP model can be reliably used as a metric to help investors gauge exactly where the bottom may be, based on the cost incurred by miners to create a newly mined bitcoin.
What else can this new model tell us?
It has often been an anecdotal belief in Bitcoin that prices often follow hash rate. When we see the lead cryptocurrency’s hash rate rise to new highs, price usually isn’t far behind.
DataDater’s COP model predicts a rise in Bitcoin prices which roughly correlates with the asset’s parabolic curve of progression, and also Plan B’s stock to flow model (S2F).
It makes this prediction based on the short life of the viability in ASIC miners and increasing hash rates, as new miners join the network. As miners invest in higher priced equipment, and more miners compete for the same rewards, we expect Bitcoin prices to rise because of increasing operating costs.
The COP model for valuation can also be applied to other PoW cryptocurrencies, a quality that other valuation models for Bitcoin often fall short of when applied to rival PoW coins.
By predicting the minimum cost of production for miners to produce other coins like BCH, LTC, or XMR, we can predict a COP valuation for these chains also. Additionally, the COP models can be used to compare the price of Bitcoin to other PoW coins.
DataDater has plans to do a future comparative analysis of the effect of other PoW coins on the Price of Bitcoin using the COP comparisons to add an unbiased perspective on how these coins truly interact in the market.
What do you think of the COP valuation model for PoW coins? Let us know in the comments!

Images via DataDater, Shutterstock
Source: Bitcoinist News

Crypto News Updates

Which Crypto is the Most Profitable to Mine in 2020?

Crypto Mining

Crypto mining is becoming exponentially competitive. It used to be that anyone with a PC could mine at a profit, but now you need expensive equipment to stand any chance. So what’s the most profitable crypto to mine in 2020? 

Bitcoin is the most profitable if you have millions to invest
Crypto mining profitability is highly nuanced, it depends on a wide range of variables such as hardware, electricity costs, and the type of cryptocurrency you would like to mine.
Bitcoin is the most profitable coin to mine currently, although not if you’re an individual miner, in most cases. Bitcoin mining is extremely competitive, requires specialized hardware in the form of ASIC (Application Specific Integrated Circuit) rigs, and requires cheap electricity in order to maximise earnings.
Bitcoin is primarily mined by large companies with millions of dollars invested in thousands of ASIC miners, cooling systems, and operate out of countries with competitive electricity rates. Bitcoin’s current block rewards pay out $14,130,000 to miners daily, at current BTC prices.
Besides Bitcoin, which crypto gives the best bang for your mining buck?
Ethereum – The second most popular crypto is the most profitable coin for most home miners. While ASICs have been developed for Ethereum, making GPU mining less profitable, Ethereum still allows for GPU mining. ProgPOW is a mining algorithm change designed to restore ASIC resistance to ETH mining. Other ETHASH coins exist to mine after ETH switches to PoS.
Ethereum Classic – This is another ETHASH crypto coin that is profitable for home miners using GPU mining rigs. Expect ETC hash rate to climb after Ethereum 2.0 is released and no longer supports mining.
Grin – Grin’s CR29 and CT31 hashing algorithms are also profitable for home miners. Grin was designed to be ASIC resistant like ETH and other coins which aim to keep mining decentralized, and accessible for hobbyist miners.
Haven Protocol – Haven protocol uses Cryptonight, a PoW algorithm also used by Monero and several other crypto coins. Nvidia GPUs are more suited to mining Cryptonight efficiently than AMD GPUs, although both can be used to mine Haven.
BitTube – BitTube is a decentralized Youtube alternative, utilizing blockchain. Content creators get paid in TUBE tokens. BitTube uses Cryptonight also, and is a smaller cap coin that has been proven to be profitable for GPU miners in recent history.
There are also many smaller cap coins that are profitable to mine, although DYOR, because many smaller cap projects could disappear, get hacked, or exit scam at any time. Because of this, these smaller projects pose a much higher risk for miners who are trying to make a return for the hardware they purchased.
Just take the risks into mind when deciding which coin to mine.
What coin do you think is the most profitable to mine at home? Let us know in the comments!

Images via Shutterstock
Source: Bitcoinist News

Crypto News Updates

Youtube Continues Crypto Clampdown, Ivan on Tech Switches Platforms

youtube crypto

Ivan on Tech has once again been censored on Youtube. As a result, the popular crypto vlogger has decided to move over on to his own platform to publish content.

Crypto content creators look for greener pastures
Youtube’s censorship has only intensified since their most recent update to the site’s terms and conditions. Crypto content creators have been the latest group to be demonetized and receive strikes against their channels, as part of the latest purge.

THE CRYPTO PURGE CONTINUES!!@TeamYouTube removed our video from this morning and gave us a strike AGAIN!!!
Nothing harmful or dangerous in that content…
— Ivan on Tech (@IvanOnTech) March 9, 2020

Youtube has consistently implemented stricter guidelines to limit the kinds of content available to the platform’s viewers, while at the same time, they have constantly modified the search algorithm to recommend only approved content in its autoplay feature.
The amount of arbitrary censorship on Youtube has caused a mass exodus of content creators to other platforms like self-hosted websites, competitors like Bitchute, D-Live, and Vimeo, and the self-hosted Fediverse video platform Peertube.

We streamed for the first time on our own platform outside youtube, and it was way better than expected
— Ivan on Tech (@IvanOnTech) March 10, 2020

Ivan on Tech is just the latest casualty of Youtube’s censorship happy policies. Ivan has launched his own site to stream and host his own content, inspired by the POSSE (Publish [on your] Own Site, Syndicate Elsewhere), web publication philosophy.
Privacy and Censorship are the two major issues facing the future of the Web
As Silicon Valley’s big tech monopolies continue to limit the freedom of the internet by censoring social media and banning controversial content, we will continue to see content creators seek censorship-free alternatives.
Data harvesting is another major issue facing web users, as large tech companies offer free services at the expense of harvesting and monetizing the user’s private data. Data is a pivotal battle for the privacy of internet users, and in the fight against censorship.
The answer to both of these issues is to stop using centralized social media and big tech web services. The rise of the Fediverse’s self-hosted social media alternatives, like Mastodon, Peertube, and Pleroma, are evidence of this trend towards freedom and decentralization.
Self-hosted crypto projects like Urbit, BTCPay server, and LibrePatron are also on the forefront of online liberty and the battle for privacy.
What do you think about Youtube’s latest crackdown? Let us know in the comments!

Images via Shutterstock, Twitter @IvanonTech
Source: Bitcoinist News

Crypto News Updates

Ripple Partner Gets Acquired For Undisclosed Sum

Ripple Launches New XRP Fraud Reporting Procedure

Ripple partner and global remittance player TerraPay has just been acquired for an undisclosed amount of money. The company also raised $9.6 million from Prime Ventures, IFC, and Partech Africa, for global expansion, as part of the acquisition deal.

Will TerraPay bring XRP to millions of new global users?
TerraPay is a local, regional and global payments fintech startup that was incubated by Comviva, a mobile solutions provider based in India. TerraPay is a new payments infrastructure provider which links financial institutions, banks, mobile money operators, money transfer operators, into the same payments network to reduce costs.
TerraPay has secured more than 25 licenses to operate in over 60 countries, and currently exists in Africa, Europe, and Asia, with plans to expand globally with the $9.6 million they raised.
TerraPay will also be able to offer banking-like services to industries typically excluded from traditional payment processors and credit card systems. They’ll also make it possible for mobile money accounts to be used by businesses to pay employee salaries and allow for remittance payments to settle in real time.
TerraPay has actively pursued partnerships with global payments networks and remittance services like Visa, Xpress Money, MoneyTrans, Paga, Ria, Instant Cash, Ripple and MoneyGram.
Ripple and TerraPay are partners, but no mention of XRP for TerraPay
Unlike many other Ripple partnerships, which leverage Ripplenet technology for cross-border payments, TerraPay has its own payments network and settlement system.
TerraPay also has partnerships with many of Ripple’s direct competitors in the global payments market, like Western Union.
TerraPay may utilize XRP or some other Ripple payments tech in the future, however as it stands presently no plans for such a joint-venture have yet been announced.
Ambar Sur, CEO of TerraPay spoke on Terrapay’s mission.
We believe in our mission to address financial inclusion by making real time national, regional and global payments accessible to everyone. We are excited by this validation from our marquee investors, and look forward to growing rapidly and reaching most of the world’s underserved in the coming years.
While TerraPay and Ripple share similar goals of making remittances cheaper and more accessible, it remains to be seen just how much overlap in these shared goals will be leveraged by the TerraPay/Ripple partnership.
Is the TerraPay acquisition a net positive for Ripple or not? Let us know in the comments!

Images via Shutterstock
Source: Bitcoinist News