Ripple, the San-Francisco-based company is continuing on its quest to inject XRP into several startups, despite allegations of market manipulation and a class action lawsuit.
Announced on August 15, Ripple’s investment subsidiary, Xpring took part in a $4 million seed round for Coil, an in-browser payment processing startup, which was led by Stefan Thomas, the former CTO of Ripple.
Furthermore, Xpring also announced on Thursday that it donated $1 billion in XRP (which is worth around $265 million at today’s price) to Coil for help in creating a community of “creators, consumers and strategic partners,” as per a press release. The XRP funds granted to Coil came directly from “Ripple’s balance sheet of XRP,” as per Ethan Beard, the Vice President of Xpring.
The funding round has resulted in an ambitious growth plan for Coil. The plan includes a $20 million investment in Imgur, the photo-sharing platform as well as an undisclosed amount in Cinnamon, a video streaming startup.
Ripple and Xpring
Xpring’s investment plans are notable ambitious. Beard stated that he has not been given any limit or minimum with regards to pulling XRP funds directly from Ripple.
“There weren’t any artists on the platform yet and I saw it as an incredible opportunity to get in early. There’s not many untapped markets, but I managed to find one. I’m super excited for the future of crypto, Coil, and the music industry as a whole.”
As a result of these “limitless funds”, Coil is set to become the second focal point of Ripple’s, XRP issuance.
Ripple’s former CTO, Thomas, stated that Coil is ready to run a “Booster” program which pays out XRP grants to the top content creators on its platform. However, he declined to reveal just how many creators are currently involved, however, they collectively received $10,00 worth of crypto as of May.
In addition to Imgur and Cinnamon, Coil has also joined forces with Puma, a mobile browser startup.
It will be interesting to see how the markets will react to Ripple’s latest investments, especially in light of Peter Brandt’s accusations and the company’s pending lawsuit.
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