The XRP ledger is set to be used by a new cryptocurrency project, Allvor. Allvor, a startup that will focus on the e-commerce market will become the first cryptocurrency project built on the XRP ledger. The decision to use Ripple’s infrastructure stemmed from the XRP ledger’s superiority to its competitors according to the company’s whitepaper.
For the longest time, Ethereum has been the platform that most startups have preferred to launch their projects. The success of Allvor is therefore crucial as it would give the XRP ledger the legitimacy it needs to attract even more projects. While this is not Ripple’s main area of purpose, it could nevertheless work to boost it and attract even more interest to Ripple.
This is not the first time the XRP ledger has been experimented to launch a new project. Mid last year, a self-proclaimed cryptocurrency activist and the founder of Bitcoin Black Friday, Jon Holmquist, attempted to launch the first ICO on the Ripple Consensus Ledger. The PRX tokens were however just experimental and didn’t represent a company that aimed to solve any real-world problem. The SEC was on him in a few days and the whole sale was closed down. While launching PRX tokens, Holmquist was asked how much money he planned to raise and he humorously replied, “probably enough to buy me a beer or two.” Allvor is not nearly the same as it has an area of focus (e-commerce) that it intends to revolutionize through the use of ALV tokens.
Ripple has distanced itself from the Allvor project and understandably so. Ripple’s model is very closely related to banks and financial institutions, an industry that is quite conservative and regulated. To that end, Ripple has not had any issues as it has stated time and again that it’s willing to work with regulators.
“XRP Ledger is open-source and a decentralized platform, so people can build whatever they want, but Ripple isn’t interested in promoting or supporting ICOs on the ledger,” a Ripple spokesperson recently said, a clear indication of how the company is distancing itself from Allvor.
There have also been concerns regarding the airdrop method that Allvor intends to use. Allvor will create 100 billion ALV tokens, only 5% of which it will distribute to XRP holders. The number of tokens one gets is based on the number of XRP tokens one held before March 27. Those who opt in will have to disclose to Allvor the amount of XRP they hold and their IP addresses. Being the first time this is being done on the XRP ledger, there are those with concerns regarding privacy and security.
While the skepticism is valid, it should not take away from just how much of a win this is for the XRP ledger. Allvor’s success will be a warning to Ethereum, by far the most popular platform for launching ICOs that its position could come under threat from XRP ledger.
All eyes are on Allvor.