Can I establish a bank and issue a new Ripple coin myself?
This is a guest post by Stefanlau originally posted on Crypto LA.
As we all know, it’s easy for us to launch a new coin, and the cost is not very high. As demonstrated by Ripple coins like IOU, FLC and JED, we can all launch a new coin by using our ripple wallet addresses as a gateway.
If others are willing to trust your address, you can distribute and send your new coin to them. That’s how your coin will flow into the public market. For example, fans of Kobe Bryant can issue Kobecoin, and in their community they can exchange gifts like basketballs or autographed photos for their Kobecoins. Fans can deposit the funds into your account by trading Kobecoins for other coins. But what is interesting is that you may also transfer your Kobecoin into Jordancoin if you’ve suddenly decided you like Michael Jordan better. All of these exchanges are completed by the gateway.
Your USD is not my USD
If someone’s willing to trust you, you can exchange IOUs for USD or CNY. But is this USD like other USDs? Can you exchange them in another gateway? The answer is sometimes no. Because this USD is just a sign. This sign can only be exchanged in gateways. If nobody trusts you, your USD isn’t worth anything. So some newbies are frustrated that they can’t exchange their coins for USD. Because they deposited the USD into their ripple wallet via Bitstamp, but they want to buy XRP in the Snapswap gateway with “fake” USDs. Obviously, it’s not possible.
It’s key that newbies completely understand Ripple’s “trust” function. You must know your USD is not my USD if there is no trust. If you trust me with $1,000, I could borrow your $1,000.So use trust carefully!!
Some notes about trust:
- Only trust prominent gateways with strong reputations.
- Don’t trust someone you don’t recognize and don’t let others trust you easily
- If someone lets you trust him for USD or CNY outside of a gateway like Bitstamp or Ripplecn, that trust may be misplaced.
Integration of Blockchain Technology in The Music Industry
As it stands today, the music industry has gained a reputation for being in chaos…
XRP Embarks On Modest Improvement After Recent Drastic Crash
The movement of XRP has improved substantially after the recent March 12 crash The crypto…
The big Ripple XRP lawsuit update
We are not going to pass any judgement on the legal side of this lawsuit.…
Bank of America / Ripple partnership reports “accurate but released too soon”
We already know that Bank of America has been unoficially trialling and working with RippleNet…
Ripple’s XRP to scale up to 65,000 tx/ps sooner than we expected
The matter of XRP transaction speed has been quite contentious. While a lot of people…
Bitmex flash crash doesn’t scare off XRP bulls
On February 13th at 3pm CET the controversial crypto exchange Bitmex flash crashed the price…