Forex Varsity, the leading forex trading educator in Africa, has partnered with Xago to bring credible and compliant crypto trading to thousands of their members and associates across the continent.
Xago offers Forex Varsity’s clients innovative money movement into or out of crypto with our custom-built Xago Xchange. This trading platform enables individuals to buy, trade, send and receive ZAR/XRP cryptocurrency in less than 4 seconds.
Garth East, Group Managing Director of Forex Varsity, is well-known for being discerning in his choice of partners and states, “we’ve been watching the cryptocurrency industry closely for around 10 years, and have not felt comfortable with endorsing a crypto trading partner, until now. We have specifically chosen Xago as they are a highly credible South African fintech that focuses on an all-inclusive approach to moving money and offer our clients the best support to enable trading. Importantly, they have been accepted to test specific regulatory treatment of crypto assets and their investors and strategic partners align perfectly with our core vision to succeed with integrity.”
Kevin Lewis, Chief Growth Officer at Xago, whom manages the relationship with Forex Varsity, is very pleased to announce the news and comments, “our partnership is a perfect way to introduce cryptocurrency trading to individuals whom already have a vested interest in trading foreign exchange. Our Xchange minimises the risk of currency exchange fluctuations for the individual (and businesses) due to the settlement time of 3.8 seconds on average, all the while knowing they are trading on a secure, traceable, compliant and effective exchange.”
Forex Varsity clients are already registering with Xago via a specifically designed personalised user journey and have started their new crypto trading careers.
About Forex Varsity
Forex Varsity is the only trading educator in Africa to be endorsed by banks and universities. We hold exclusive rights as an Officially Certified Introducing Agent for Bernstein Bank. In terms of Training Endorsements, Cape Peninsula University of Technology are committed to using us as a springboard for hosting interns as part of their Formal Internship Programme, running for three months annually. In addition to our Accreditations, we offer a dynamic support service which continues to demonstrate outstanding results. www.forexvarsity.com
For more information, please contact:
Cheridan Inglis, Chief Marketing Officer, Xago Technologies
On 28 January 2021, the Intergovernmental Fintech Working Group (IFWG) announced that crypto innovator, Xago, has been accepted into the inaugural cohort of the IFWG Regulatory Sandbox to test the regulatory treatment of crypto assets (specifically Ripple’s XRP) in terms of the South African Exchange Control Regulations 1961, promulgated in terms of section 9 of the Currency and Exchanges Act, 1933. For full details, visit the IFWG website.
Since its inception, Xago has welcomed clear, appropriate and fair regulation.
Jurgen Kuhnel, CCO and Mark Chirnside, CEO and both Co-Founders of Xago, have been working closely with the relevant stakeholders within the IFWG during the last year as part of a process that has culminated into Xago being accepted into the inaugural cohort of the Regulatory Sandbox. Chirnside confirms their views on being supportive of regulation, “Xago has been amongst the first to stand in line to work with the IFWG regulators to bring the regulatory treatment of crypto assets under observation and we are proud and honoured to be accepted to participate as it bears testimony to the respect for and the credibility of our company in the domestic and global fintech space.”
Xago has always and will continue to require all clients to comply with the Financial Intelligence Centre Act (FICA) in order for us to maintain strict Know Your Customer (KYC) and Anti-Money Laundering standards.
The collaboration with the IFWG will test effecting cross-border transactions using XRP as the underlying value transfer mechanism between South Africa and the United Kingdom, and the United Kingdom and South Africa, subject to certain limits prescribed by the relevant authorities, and reporting on such transactions to the relevant authorities.
For more information, please contact Mark Chirnside, CEO & Co-Founder here.
Xago, an innovative South African Fintech that focuses on an all-inclusive approach to moving money across Africa, announced its partnership with Bitmama, Africa’s most trusted digital currency company with customers in over 10 countries, including Nigeria, Ghana, Kenya, Cameroon, Zimbabwe, Uganda, Angola, Tanzania, UK, Japan and now South Africa.
Founded in April of 2016 by CEO Ruth Iselema, Nigerian-based Bitmama started out as a peer-to-peer currency exchange. It quickly grew into a dynamic platform built on blockchain technology where traders buy and sell with cryptocurrencies, allowing Bitmama to eradicate traditional third party costs and waiting time. Xago’s partnership with Bitmama will now enable their Changera app users to send and receive digital ZAR at an average of 3.8 seconds to family, friends, business partners, suppliers, in fact, anyone they choose across the world, and at a very low cost per transaction. This service is on track to go live in early February.
Xago moves money into or out of crypto in just a few innovative steps and delivers a custom-built exchange to trade, send and receive Xago’s digital ZAR across the globe. Mark Chirnside, Xago’s CEO and Co-Founder emphasises that “the team at Xago is honoured to be chosen by Bitmama as their fiat to digital ZAR on- and off-ramp partner. They are a dynamic, customer-focused company that drives leading-edge technology and are dedicated to bringing new services to market, rapidly”.
Speaking on the partnership, Ruth Iselema, CEO of Bitmama noted, “for us at Bitmama, we are constantly thinking up new ideas to help customers move money around quickly and what Xago is bringing is a unique, innovative solution. This is an exciting partnership for us, as it will bring a whole new experience for our users. We are also happy to be involved with an expert team like Xago, who are changing how things are done and breaking new frontiers in the blockchain industry.”
In the same year that Bitmama was founded, Jurgen Kuhnel, Sonya Kuhnel and Chirnside, co-founded Xago. The start-up has changed the way money flows, what it costs and how long it takes to reach a destination while providing a secure, traceable and effective solution to all elements of the financial ecosystem.
Imvelo Ventures, a venture capital investment company founded by Capitec Bank and Empowerment Capital Investment Partners invested in Xago to expand its reach across Africa and the emerging markets.
Bitmama is a platform that allows traders to buy and sell with new digital currencies like Bitcoin and Ethereum. We are focused on building a global payment infrastructure that enables businesses to integrate cryptocurrency into new or existing products. www.bitmama.io
For more information, please contact:
Cheridan Inglis, Chief Marketing Officer
XAGO TECHNOLOGIES (PTY) LTD
+27 82 567 0800
XRP is an established cryptocurrency that is built on Ripple Inc.’s XRP ledger (XRPL) using leading-edge blockchain technology. Ripple was founded in 2012 and clearly distinguishes itself from other cryptocurrency creators, for example Bitcoin, as it does not use proof of work (mining); and issues the cryptocurrency, XRP, differently.
The XRP ledger (XRPL) uses a validator network to manage the decentralised ledger. This is different from proof of work because it uses a different algorithm to reach consensus. Validators do not get incentivised through a block reward to validate transactions and therefore no new coins get minted during this process. Instead, coins must get issued to come into existence. This is the reason the XRP ledger is so much faster and more efficient than other cryptocurrency blockchain systems.
As there is no proof of work, how would XRP come into existence and why is it needed?
The XRPL is open source and anyone who is interested can participate on the network. You can build gateways, exchanges or other interesting functionality with XRPL. The consensus algorithm can handle around 1,500 transactions per second and with payment channels you can push this to much higher throughput.
But what if the ledger gets spammed by a malicious actor?
What if a competitor network wants to bring down the eco-system? All they would need to do is to set up a node and send thousands of transactions per second onto the ledger. This will clog the network and the system becomes unusable for everyone else.
The solution to this is to charge a small fee on each transaction. Therefore, the malicious actor will have to pay to spam the network. The fee will dramatically increase when the ledger’s specifically developed algorithm detects such activity. This will end up costing the bad actor and they will have to stop. If the validators were getting rewarded for validating the transactions, the bad actor would simply be paying themselves for spamming the network. Therefore, the fee gets destroyed and ultimately makes it unattractive for the malicious actor.
So what is the fee made up of? It cannot be the same as what was issued by the gateway, because then, as a gateway, a malicious actor can issue a currency, then spam the network and destroy the funds that were issued. This creates another loophole.
That is why XRP was issued onto the XRP Ledger
Ripple is the gateway and issuer of XRP. The transaction fee on each transaction on the XRPL is paid with XRP and this XRP is then destroyed (or burned in their terms) during the process. The XRP that was issued was written into the XRP protocol and no-one, not even Ripple, can issue more XRP.
Here are the logistics:
- Ripple issues the XRP and therefore wallets are required to hold the XRP.
- On the first day XRP was created, 100 billion XRP was issued into Ripple’s wallet.
- Important to remember here is that this XRP had no value, whatsoever. No-one used it, no-one needed it and it was not listed on any cryptocurrency exchanges.
- The intention was that participants on the XRP ledger would need XRP to pay for the transaction fees.
- Ripple sells XRP at an agreed price in order to get these participants wallets operational.
In many cases, especially in the beginning, Ripple gave away XRP to exchanges and staff members for free. It is understandable that the owners and executives received XRP. As mentioned before, XRP had no value at this stage, so if you had 1 million XRP it meant nothing in terms of value. All you could do with it was to store it in your wallet and use it to enable transactions on the XRPL.
Over several years since 2012, XRP was listed on crypto exchanges and participants started experimenting with this concept. Ripple raised capital through private equity, has shareholders and is an extremely well-funded company.
Their mission is to enable fast, efficient and very cost effective cross border payments and thereby competing with large payment networks, globally.
As Ripple began distributing the XRP (as it had 100 billion to start with) and the eco-system grew, XRP became valuable. People started to speculate on its price via crypto exchange platforms. Now, it needed to have some value, otherwise if it had no value, malicious actors could use XRP to spam the network. They now needed to buy XRP from Ripple or from a reputable exchange on the open market place and then attempt to spam the network which would cost them money to do so. This was therefore a deterrent to these activities.
In early 2017, Bitstamp, the first cryptocurrency exchange, listed XRP on their orderbook. Consumers could now start trading XRP and participants did not need to buy XRP directly from Ripple anymore, therefore enabling anyone to buy and sell XRP on their crypto exchange. Many exchanges followed Bitstamp by listing XRP and during 2017, the price (value) of XRP sky-rocketed as did Bitcoin and several other top-market capitalisation altcoins.
Ripple has created an innovative alternative payment rail to traditional payment networks by using a decentralised ecosystem for financial institutions. Their products, xCurrent, xRapid and xVia are all geared towards bringing institutional clients onto the XRP ledger.
The XRP ledger well and truly outperforms any other money transmission technologies available, including traditional banking systems, globally. It is light-years ahead of all competitors.
Xago, an innovative South African Fintech that focuses on an all-inclusive approach to moving money rapidly, has confirmed receipt of a substantial investment from Imvelo Ventures, a venture capital investment company founded by Capitec Bank and Empowerment Capital Investment Partners, and will continue to expand its cryptocurrency services and products into African markets for both businesses and individual clients.
Co-founded in 2016 by Jurgen Kuhnel, Sonya Kuhnel and Mark Chirnside, Xago moves money into or out of crypto in just a few innovative steps and delivers a bespoke payment gateway built on the XRP Ledger and custom-built exchange to trade, send and receive XRP/Xago Digital ZAR. Chirnside, Xago’s CEO, Co-Founder and Chairman, says “Xago changes the way money flows, what it costs and how long it takes to reach a destination while providing a secure, traceable and effective solution to all elements of the financial ecosystem.”
“At Empowerment Capital we look for investees with strong leadership teams whom are able to drive inclusive transformation in the South African economy through solutions that address current challenges faced by consumers and society”, says Anton Baumann Executive Director at Empowerment Capital and Imvelo Ventures. “Xago’s offering is unique, bypasses traditional payment rails, while remaining fully compliant and highly secure. Investing in this dynamic Fintech to provide alternative opportunities for individuals, SMEs and Corporates to build alternative wealth in South Africa and into Africa, is a perfect step into the crypto space for Empowerment Capital and Imvelo Ventures.”
“Capitec is excited to become involved with such a strong team, whom are true experts in the blockchain domain. Xago offers an innovative, low-cost and secure settlement platform to enable us to push the boundaries of traditional payment infrastructure,” confirms Stefan de Klerk, Innovation & Digital Solutions, Capitec Bank Limited.
As Xago is the leading fiat (cash) on- and off-ramp of XRP/Xago Digital ZAR for crypto exchanges, and continues to work with regulators and strategic partners across the globe, this investment is perfectly timed to drive substantial growth for the company.
About Xago Technologies (Pty) Ltd.
Xago harnesses the power of mobile, retail networks and blockchain technology in playing a crucial role to transform the payment industry, particularly in Africa. We provide innovative money movement that changes the way money flows, what it costs and how long it takes to reach a destination by bypassing traditional payment rails, while remaining fully compliant and highly secure. www.xago.io
About Empowerment Capital Investment Partners (Pty) Ltd.
Empowerment Capital has pioneered the idea of mutually beneficial long-term equity investments into the SME sector as a form of sustainable and impactful Enterprise and Supplier Development (ESD). The investment solution offered by Empowerment Capital achieves maximum flexibility through a bespoke investment approach to high impact and sustainable development of the SME sector with a strong mandate for social transformation. Empowerment Capital has established and executes corporate venture capital investment funds in partnership with leading South African corporates and strives to “transform lives though investment”. www.empowerment.capital
For more information, please contact:
Chief Marketing Officer