XRP Case Motivation

Objectives

  • Understand the cryptocurrency market
  • Appreciate the evolution and dynamics of the development of cryptocurrency technology
  • Identify some of the business models that are being deployed by the main players
  • Appreciate some of the issues involved in cryptocurrency becoming accepted as a mainstream alternative

Background

  • Ripples is a Fintech that is implementing a cryptocurrency
  • They are interested in replacing infrastructure for money transfers to a new platform that is borderless
  • Its main customers are banks and financial institutions contrasting bitcoin and others that plan to bypass them
  • They are experiencing some friction in the market place
  • What direction should they take

Required knowledge

  • Technical content: Readings from the case
  • Video and lecture material on Fintech and Cryptocurrency
  • Research blockchain and cryptocurrencies

Issues to consider

  • Consider the following issues and prepare your analysis :

1.Looking forward, what role will cryptocurrencies and blockchain play in 2025

2.Do you expect cryptocurrencies to service a significant role as a medium of exchange in 2025? Why? Or Why not?

3.What are the advantages of XRP vs. Bitcoin vs. Ether

4.How would you grade Brad Garlinghouse’s strategy for Ripple at the time of the case?

  1. What should Brad Garlinghouse do: 1)stay focross-border cupayments to replace SWIFT; 2) continue in investing in cross-border payments, but divert resources into complementary financial products; or 3) exit the software business and invest aggressively in the XRP ecosystem for new usage models

Submission (Case: XRP

  • You may work in groups but document and submit individually:

– Penalties will apply if we spot collusion

You must document:

– The assumptions you have made if any that are not in the case  – Show calculations and results as an appendix (not always required)

 

Depending on your formatting, about 3 pages and not exceeding 1,000   words (excluding executive summary and appendix). All reports must adopt the following formatting requirements; 1.5 spacing and 12 point font.