Ripple Retreats as Coinbase Denies New Coin Listing Rumors

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One Ripple token is worth $3.25 (£2.40) - which equates to 0.00020147 BTC.

Ethereum, for the first time, hits $1,000 on Thursday, while investors looked at alternative currencies such as ripple, ethereum and litecoin.

Ripple's currency - which uses the code XRP - is meant to act as a universal currency for transfers between all global currencies (including other cryptocurrencies, like bitcoin) - just as United States dollars does in the above example. It has also claimed the position of second most valuable cryptocurrency by market cap, dethroning Ethereum (see image below).

Of course, Ripple is far from the only other cryptocurrency out there. Bitcoin may end up being more of a digital store of value -a web-based version of physical gold- than a unit of exchange.

How is Ripple different to bitcoin?

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Some banks, including UBS, Santander and American Express, have already adopted Ripple as it saves them money by avoiding foreign exchange fees. Network participants use a digital coin called XRP for transactions.

The start-up owns 61 percent of the 100 billion XRP in existence. Of that number, 61% is held by Ripple Labs. Bitcoin, however, is constantly being created until it reaches a pre-set limit of 21 million coins; this limit is not expected to be reached until around the year 2140.

Still, with the demand from customers likely to be overwhelming, you would have to imagine that it's coming but with the rumor and denial, it will make the announcement tricky. In the last few weeks, for cross-border payments, according to the company.

What Happened: The Western Union Company (NYSE: WU) shares spiked Friday afternoon as traders circulated a report that the company was in talks with Ripple to adopt its XRP cryptocurrency this year.

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