Ripple is doling out crypto-coins to boost usage

Jul 03, 2018, 7:23 AM EDT
(Source: Marco Verch/flickr)
(Source: Marco Verch/flickr)

The problem with Ripple’s XRP, the third most popular cryptocurrency by market capitalization, is that people buy and sell it but don’t use it that often. To encourage buyers to use this digital currency, Ripple is literally giving away a lot of XRP.

The San Francisco-based firm, which owns nearly $30 billion worth of XRP, courtesy the surge in cryptocurrency valuation last year, has set up a $300 million fund to reward companies that will use its digital tokens for overseas money transfer, reports The New York Times.

Unlike Bitcoins that grow in numbers with every transaction, all 100 million XRP were created in one go in 2013, with Ripple retaining 80% of them, a model that gives the latter a better control in persuading people to use its digital tokens, notes Futurism.