Is the rumored Ripple and Stellar (XLM) alliance true?
Is there any truth to the rumors that Ripple and Stellar (XLM) are in the process of forming a partnership? Let’s find out more.
Putting the rumored Ripple and Stellar (XLM) alliance in perspective
Let’s start with a quick and brief background. Ripple, a company that focuses on building solutions for cross-border payments using blockchain technology, was founded by Jed McCaleb. A few years back, he left Ripple and created Stellar Lumens (XLM), another company that utilizes blockchain technology to create financial solutions. Not really a good reason to think that a partnership is in the works. In fact, most people would think the opposite.
There is a major twist that probably sparked the rumors. A couple of weeks ago, 40 million XRP was transferred to Jed McCaleb’s XRP wallet. XRP is the flagship cryptocurrency of Ripple and 40 million in today’s market is worth around $20 million. Many details of the transaction have been kept under wraps such as who sent him the XRPs (the reason rumors are spreading like wildfire).
From a business standpoint, it could go either way. Some would say that these rumors are just that – rumors. They say it is highly unlikely that McCaleb would partner with his former company, which incidentally is Stellar’s biggest competitor. This is all the more reason why an alliance is probably not in the works.
On the other hand, others would say that also from a business standpoint, it could make sense for Ripple and Stellar to join forces to take on the market together. Although they are rivals, joining forces will mean that together they will have the lion’s share of the market. Since McCaleb founded Ripple, he would have an existing working relationship with many members of its management team.
Whether there are negotiations in the works or even if they have already ironed it out is not yet known, at least not publicly. So you will just have to keep reading our articles to find out more.