Redemption arcs of 2024: Ripple’s victory, memecoins’ rise, RWA growth

Redemption arcs of 2024: Ripple’s victory, memecoins’ rise, RWA growth

Bitcoin’s historic rally to the $100,000 milestone occurred among many significant crypto redemption stories in a year that further legitimized the industry’s status.

The year’s events brought a resurgence for many notable crypto projects that had faced hardships, including Ripple Labs, which scored a significant legal victory against the United States securities regulator, while the memecoin and asset tokenization sectors were also revived, driven by growing retail interest and robust growth predictions.

Beyond new all-time highs, 2024 brought renewed institutional interest in blockchain from some of the world’s largest institutions, such as BlackRock, which launched multiple crypto-based products.

Moreover, President-elect Donald Trump’s victory in the 2024 elections bolstered investor appetite for risk-on assets such as cryptocurrencies, as an improved environment is expected to bring more regulatory clarity, especially for tokens like XRP.

Ripple Labs and XRP token emerge victorious in 2024

Despite a four-year-plus regulatory battle between Ripple and the Securities and Exchange Commission (SEC), the XRP token has proved its resilience amid a robust community of holders.

During the past year, the XRP token rose over 251%, more than double that of Bitcoin’s BTCtickers down$97,767 117% returns, according to Cointelegraph data. This makes XRP the second-best performer in the top 10 cryptocurrencies, Cryptobubbles data shows.

Beyond the XRP token’s financial returns, Ripple Labs also saw a “significant redemption arc” during the past year, according to Alvin Kan, chief operating officer of Bitget Wallet.

He told Cointelegraph:

“In 2024, Ripple and XRP stand out as a significant redemption arc in the crypto space. After navigating legal challenges, Ripple has solidified its position in cross-border payments, partnering with over 300 financial institutions and achieving a market cap exceeding $30 billion.”

Ripple scored a significant legal victory in July 2023 when a federal judge ruled that XRP was not a security, regarding programmatic sales on digital asset exchanges.

This marked a significant win for Ripple, as the SEC lawsuit sought to compel Ripple to stop offering its XRP token under the premise that it was a security and, thus, required additional regulation.

However, the SEC also managed to notch a victory of its own, as the federal judge has ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey test.

The SEC filed its lawsuit against Ripple in December 2020. In August 2024, a judge found the company liable for a $125 million civil penalty. The commission appealed the ruling, and Ripple filed a cross-appeal, leaving the civil case ongoing at the time of publication.

On Oct. 16, the SEC filed a Form C civil appeal asking the court to review its decisions regarding Ripple’s XRP sales on exchanges and personal XRP sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

Trump’s upcoming inauguration, along with his choice for SEC chair, Paul Atkins, have reignited investor hopes that the SEC may drop its legal case against Ripple Labs amid more innovation-friendly crypto regulations.

Memecoin resurgence: 1,600% PEPE and 1,400% WIF rally attract more retail investors

Memecoins have also seen a significant revival, becoming some of the best-performing cryptocurrencies of the year and creating new crypto millionaires in the process.

Year-to-date, the Solana-based Dogwifhat WIFtickers down$1.91meme token rallied over 1,273% as the second-best performer in the top 100 cryptocurrencies. It was followed by Pepe PEPEtickers down$0.00001802, which is up 1,229% as the third-best performer.

Benefiting from Pepe’s rally, a savvy memecoin trader turned a $27 investment into $52 million after holding the coins for 600 days, Cointelegraph reported on Dec. 14.

While 2024 was transformative for the entire crypto industry, the memecoin redemption arc remains a significant development, according to Anndy Lian, author and intergovernmental blockchain expert.

He told Cointelegraph:

“Memecoins, often dismissed as speculative and frivolous, found new relevance in 2024 by integrating humor, culture, and financial innovation. Tokens like Dogecoin, Shiba Inu, and Neiro gained traction, with Dogecoin even influencing U.S. politics through Elon Musk’s appointment to the Department of Government Efficiency (D.O.G.E.).”

The redemption arc behind memecoins is a testament to community-driven projects, added Lian.

Some crypto traders see Pepe as this cycle’s Dogecoin DOGEtickers down$0.3237, which is also gaining traction thanks to Musk’s continued social posts, wrote Ryan Lee, chief analyst at Bitget Research:

“Dogecoin may be poised for a breakout as Elon Musk’s continued influence keeps DOGE in the spotlight, often triggering price surges. The positive sentiment in the broader crypto market, especially among meme coins, provides additional momentum.”

On Nov. 27, Dogecoin flipped Porsche’s market capitalization, following Musk’s involvement in creating the nascent Department of Government Efficiency, which further stoked interest.

RWA tokenization poised for trillion-dollar growth leading into 2030

The real-world asset (RWA) tokenization sector has also seen a significant redemption, thanks to its promise of bringing traditional finance onchain to create more liquidity and accessibility for investment products.

RWA tokenization refers to financial and other tangible assets minted on the immutable blockchain ledger, increasing investor accessibility and trading opportunities around these assets.

The launch of BlackRock’s Institutional Digital Liquidity Fund (BUIDL) was a pivotal moment for the RWA tokenization sector, according to Edwin Mata, co-founder and CEO of Brickken, who told Cointelegraph:

“BlackRock’s launch of BUIDL on Ethereum was a defining moment, demonstrating how blockchain could deliver real, tangible value to the financial world. It was more than a technological experiment — it restored credibility and trust in the blockchain ecosystem.”

BlackRock’s tokenized treasury fund surpassed $500 million market capitalization as the first such fund to reach this milestone in July 2024.

BlackRock’s BUIDL surpassed the Franklin OnChain US Government Money Fund (BENJI) as the world’s largest tokenized treasury fund in late April — less than six weeks after it launched on March 15. BUIDL has held the top position ever since.

BUIDL’s price is pegged 1:1 with the US dollar and pays daily accrued dividends directly to investors each month through its partnership with real-world asset tokenization platform Securitize.

The tokenized fund brought more transparency, liquidity and accessibility to already trusted financial products, added Mata:

“The crypto industry has faced criticism for its speculative nature and lack of integration with traditional financial systems. BlackRock, the largest asset manager in the world, proved that blockchain could enhance, not replace, traditional finance.”

In other notable developments for the RWA sector, Tezos has launched the world’s first Uranium marketplace on the blockchain, enabling retail investors access to tokenized Uranium for the first time in history.

Moreover, RWAs are unlocking new investor opportunities in the $700 billion reinsurance sector following the launch of Nayms, a crypto-native (re)insurance marketplace leveraging RWA tokenization to offer tokenized investor access to insurance risks.

Related: BlackRock’s BUIDL goes multichain

The RWA sector could see more than 50-fold growth by 2030, according to predictions from some of the largest financial institutions and business consulting firms compiled in a Tren Finance research report.

Most firms predict that the RWA sector may reach a market size of between $4 trillion and $30 trillion.

If the sector achieves the median prediction of about $10 trillion, it would represent more than 54 times growth from its current value.

The year 2024 marked a significant resurgence for the crypto industry in terms of valuations and mainstream trust. Ripple’s legal victory and increasing interest in memecoins and RWAs showcase the industry’s growing legitimacy for retail participants and regulators worldwide.

 

Source: https://cointelegraph.com/news/redemption-arcs-2024-ripple-victory-memecoins-rwa

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Anndy Lian: Why RWA Tokenization is Taking Off

Anndy Lian: Why RWA Tokenization is Taking Off

‘Show Me The Money’

Many companies are tokenizing assets, and while I think that technology is 100% ready — and you can see big banks coming in — there’s one thing that is really missing.

And that’s not just adoption. It’s “how can companies make money?” What is the actual revenue model?

It’s hard because — if we take tokenizing properties as an example — how will an exchange earn money?

Exchanges can only earn money through different products or the number of transactions — but if you’re offering products like a securitized token or a property, you will not get that much trade on a day-to-day basis.

So the way to earn that money is very tough.

There is also a huge liquidity problem. What makes us so sure that if we tokenize that property, someone from the crypto space is willing to pay for the token?

So I think an issue here is how the revenue model can help sustain a company — maybe it is workable for the bigger banks or a large asset manager, but how are the smaller or medium players going to find a reason to buy in?

Right now, I don’t think that property is the best avenue, but maybe commodities are a good target.

So, we need sustainable revenue streams and to not ignore liquidity issues, particularly in tokenizing assets like real estate.

But we are seeing some successes: Art tokenization offers a unique blend of digital and physical value, driving demand and creating new revenue streams.

Successful art tokenization projects such as Oracle Red Bull Racing’s NFTs, and leveraging non-fungible tokens (NFTs) for ownership show the ways to unlock value in the digital art space.

Hype vs Utility of Tokenization

I still think that the whole tokenization sector is largely driven by hype. Still, a smaller percentage of people and companies will look at the technology at a deeper level — to look at how we can reduce fraud and increase the traceability element that the blockchain can offer.

The other outstanding issues are standardization of asset classes and regulation — especially from country to country.

Navigating regulatory complexities is a significant challenge: Without clear guidelines and frameworks — it becomes arduous.

I think tokenization also doesn’t accelerate as fast as we want because a huge percentage of people do not think that tokenizing will be that useful — if they think that the only goal is “tokenize a product”.

People will think in terms of: “Will the property sell well, whether it’s tokenized or not?”

But I always go back to the basics — it’s about traceability, about reducing fraud. If you can use that as the use case (for property, deeds, and so forth) and make it easy to use, then tokenization can revolutionize financial transactions, making them faster, more cost-effective, and transparent.

Trust and the Blockchain

Trust is a fundamental aspect of any financial system. Blockchain technology, with its immutable and transparent nature, has the potential to bring trust, immutability, and integrity to transactions.

Some other key things that need to be considered are:

  • Interoperability is crucial for the widespread adoption of blockchain technology. We need seamless integration between different networks and protocols to unlock its full potential.
  • Decentralization is one of the core principles of blockchain technology. It empowers individuals and reduces reliance on centralized authorities, promoting greater transparency and trust.

And we need to acknowledge the power of smart contracts, which are a game-changer in the realm of decentralized finance (DeFi). They enable automated and trustless execution of agreements, reducing the need for intermediaries and streamlining processes.

The Bottom Line

If we get all of these things working in sync, I believe that tokenization has the potential to democratize access to investment opportunities, allowing individuals from diverse backgrounds to participate in previously inaccessible markets.

It is not just financial systems; blockchain can empower individuals to take control of their personal data and privacy, mitigating risks associated with centralized data storage.

We’re at the early stages of understanding how blockchain and crypto can revolutionize various industries. From supply chain management to healthcare, the potential applications are vast.

Education is key. Many people still view crypto with skepticism or fear due to misconceptions or a lack of understanding. We need to demystify the technology and showcase its potential to drive positive change.

You can see Anndy talking about tokenization in a fireside chat with Faraj Abutalibov, Chief Commercial Officer of the Venom Foundation, at the World Tokenization Summit, held in Dubai last November:

 

Fireside chat with Anndy Lian at World Tokenization Summit, Dubai

 

 

Source: https://www.techopedia.com/anndy-lian-why-rwa-tokenization-is-taking-off

FAQ

How can companies generate revenue through asset tokenization, especially in industries like real estate?

Anndy Lian's response to the question: Companies can generate revenue through various products and increased transaction volumes. While tokenizing properties might face liquidity challenges, offering unique products like securitized tokens or exploring commodities can open up new revenue streams. Successful examples include art tokenization, where the blend of digital and physical value, as seen in projects like Oracle Red Bull Racing’s NFTs, has driven demand and created successful revenue models.

What challenges hinder the widespread adoption of tokenization beyond the hype, and how can these challenges be addressed?

Anndy Lian highlighted that tokenization faces challenges in standardization of asset classes and regulatory frameworks, varying from country to country. The perception that tokenizing a product might not be useful is another obstacle. Addressing these challenges requires a deeper understanding of tokenization’s potential to reduce fraud and enhance traceability. Focusing on the fundamental use cases, such as improving transparency and reducing fraud in financial transactions, can accelerate adoption.

How does blockchain technology contribute to building trust in financial systems, and what are the key considerations for its successful implementation?

Anndy Lian said that blockchain, with its immutable and transparent nature, has the potential to bring trust, immutability, and integrity to financial transactions. Key considerations for successful implementation include interoperability for widespread adoption, decentralization to empower individuals and reduce reliance on centralized authorities, and the utilization of smart contracts for automated and trustless execution of agreements in decentralized finance (DeFi).

What role does education play in the broader acceptance of blockchain and crypto technologies, and how can misconceptions be addressed?

Education is crucial in demystifying blockchain and crypto technologies. Many people view these technologies with skepticism or fear due to misconceptions or a lack of understanding. By providing comprehensive education, showcasing the potential positive impact of blockchain across various industries – from supply chain management to healthcare – and addressing common misconceptions, we can foster broader acceptance and understanding of these technologies.

In what ways can successful integration of blockchain and tokenization democratize access to investment opportunities and empower individuals?

Successful integration of blockchain and tokenization has the potential to democratize access to investment opportunities. This involves creating seamless interoperability between different networks, promoting decentralization to reduce reliance on centralized authorities, and leveraging smart contracts for trustless execution of agreements in decentralized finance. Anndy Lian pointed out that this not only transforms financial systems but also empowers individuals to control their personal data and privacy, mitigating risks associated with centralized data storage.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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