What Is Ripple (XRP)?
Ripple is a blockchain platform launched in 2012 with the goal of making international payments simpler, faster and decentralized. The Ripple ecosystem is powered by XRP Ledger with its own XRP cryptocurrency, which is the fifth largest cryptocurrency by market capitalization as of October 2023. The token is designed to enable fast international payments over blockchain networks. Although the protocol was created by Ripple, a company of the same name, it is fully decentralized and operates without the company's involvement.
Source & Copyright Ripple.com
Many traditional financial institutions such as American Express, Santander, Standard Chartered Bank are using Ripple services to facilitate cross-border payments and more.
XRP has a limited supply of 100 billion tokens and uses the BEP-20 standard.
Who Are the Founders and Investors of Ripple
Ripple, as a cryptocurrency project, was created in 2012 by Chris Larsen and Jed McCaleb and was originally named Opencoin. But the idea and first vision dates back to 2004. Programmer Ryan Fugger came up with the idea of creating a means of payment that would allow anyone to create their own money. In 2005, RipplePay.com was launched as a solution for making secure payments online. However, the idea did not spread widely.
In 2011, management of the project was handed over to Jed McCaleb, who was inspired by Fugger's original idea and, together with programmers Arthur Britto and David Schwartz, began working on an updated payment system. The emphasis was on developing a technology for the type of transactions that would be validated by consensus of network participants, rather than by mining, as in the Bitcoin network. In 2012, Chris Larsen joined the trio. He and McCaleb approached Fugger with the idea of creating a cryptocurrency. During this period, Fugger completely handed over the reigns to the new team, which then founded Opencoin.
Opencoin started developing a new protocol based on Fugger's ideas. It was named Ripple Transaction Protocol (RTXP). In the process of developing the protocol, which aimed to simplify bank transfers and get rid of commissions, the XRP cryptocurrency was created.
The first investors were Google Ventures and Andreessen Horowitz. In September 2013, Opencoin changed its name to Ripple Labs Inc. In 2014, Jed McCaleb left the founding team to start his Stellar (XML) project. Later, Chris Larsen stepped down as CEO. In 2017, Brad Garlinghouse became the new CEO of Ripple.
Other investors also include:
- IDG Capital;
- Santander InnoVentures;
- Standart Chartered;
- Accenture;
- CME Group;
- SBI Holdings.
What Is Ripple Price Today
Today, the price of XRP is $2.29 and the trading volume for the last 24 hours is $10,288,266,085. The coin is among the top 5 in terms of market capitalization. For a long time, the pricing of XRP was influenced by litigation between Ripple and the US Securities and Exchange Commission.
Source & Copyright TradingView
What Is the All-time High for Ripple (XRP)
In January 2018, XRP recorded its all-time high at $3,810. At that time, the token's capitalization exceeded $135 billion. XRP reaching its all-time high was due to the fact that Ripple started cooperating with traditional giants such as American Express, Santander, SBI Holdings and SBI Ripple Asia.
What Is the All-time Low for Ripple (XRP)
In December 2020, XRP recorded its all-time low at $0.20. This happened because the U.S. regulator accused Ripple of selling unregistered securities under the guise of the XRP token. Pressure on the price was also exerted by a number of major exchanges, which stopped trading XRP.
In July 2023, the price of XRP rose to $0.80 after a court ruled that XRP did not violate securities laws.
What is the Market Cap of Ripple (XRP)
Ripple (XRP) has a market capitalization of $137,821,471,033. It is calculated by multiplying the current price by their number in circulation. Currently, there are about 53.44 billion tokens. The market capitalization is subject to change. However, since its launch, the token has not left the top 5 by this indicator. It is important to follow the price dynamics in order to make informed investment decisions.
How and Where to Buy Ripple Coin
XRP can be purchased on numerous centralized and decentralized exchanges. Here is a list of some of them:
- Binance
- Coinbase
- Bitstamp
- KuCoin
- Kraken
- Gemini
- Bybit
- OKX
- HTX
- MEXC
Here's a step-by-step guide on how to buy XRP on an exchange:
- Choose any exchange where XRP is listed, create an account and go through KYC verification.
- Fund your account via available methods (e.g. bank card, wire transfer or other transfer type supported by the exchange).
- Go to the XRP trading page and select the amount of coins you want to buy.
- Check the transaction details and confirm the purchase.
- Your XRP coins will appear in the exchange's wallet.
In general, the process of buying XRP is the same on any exchange, but there may be minor differences.
How to Sell Ripple Coin
In order to sell XRP, you need to:
- Choose any exchange where XRP is listed, create an account and go through KYC verification.
- Transfer your coins from your wallet to the exchange if they are not already there.
- Go to the XRP trading page and select the amount of coins you want to sell.
- Verify the transaction details and confirm the sale.
- Withdraw the funds to your bank account/e-wallet.
In general, the process of selling XRP is the same on any exchange, but there may be minor differences.
Is Ripple Coin Legit?
Many market participants, having heard about the litigation between Ripple and the SEC, wonder about the legality of buying and using XRP. In order to understand this issue, it is necessary to consider the reason for the proceedings.
The reason. The US Securities and Exchange Commission accused Ripple of selling unregistered securities in the form of XRP tokens and filed a lawsuit against the company in 2020. In turn, Ripple did not admit the charges, saying that XRP is a commodity, not a security. The case immediately became one of the most high-profile in the cryptocurrency industry, and many began to speculate on the future regulation of the industry.
Proceedings. Since then, both sides have met in court, filing motions to prove their point.
Exodus. It is important to note that XRP is a blockchain-based cryptocurrency. Transactions are verified by consensus and this is a significant aspect. And in July 2023, the court found that XRP is not a security, which means it can be traded on exchanges.
And even though the case is still ongoing, American investors may not have to worry about the legality of buying and using XRP. But if you are a resident of another country, it is highly recommended that you research your country's laws, as in some parts of the world any transactions with cryptocurrency are considered illegal activity.
What Makes Ripple Unique
What makes Ripple unique as an entire ecosystem is that it attempts to combine traditional finance with the progressing blockchain technology. The Ripple ecosystem includes:
- Ripple Labs, a technology company that develops payment systems. Its main product is the Ripple protocol.
- RippleNet is a payment system based on the Ripple protocol. It allows companies to make cross-border payments quickly and cheaply.
- XRP Ledger, a blockchain that the XRP Ledger Foundation is responsible for developing.
- XRP is the cryptocurrency of the ecosystem.
XRP in turn differs from many cryptocurrencies in that it is an intermediate asset in the conversion of one currency into another. Its second purpose is to protect against spam. XRP is unique and valuable for the services the ecosystem offers.
How to Mine Ripple Coin
Unlike Bitcoin, which can be mined using mining facilities, XRP cannot be mined. The concept of the coin excludes this possibility, as 100 billion XRP tokens were immediately created during development.
How to Keep Your Ripple Safe
XRP investors can store their coins in the official Ripple wallet, desktop wallets, or hardware wallets. Here's a list of some of them:
- Exodus
- Ledger Nano X
- Trezor Model T
Pros and Cons of Ripple
| Pros of Ripple | Cons of Ripple |
| Fast cheap cross-border payments: the average transaction speed is 3 to 5 seconds. | Narrow scope: XRP is currently an intermediary in cross-border payments |
| Network security: consensus protocol prevents DDoS attacks | No mining |
| Support from traditional financial giants | Litigation with the SEC |
| The issue of centralization: Ripple Labs owns a lot of XRP |
Summary
Ripple (XRP) is a unique cryptocurrency project that unites the world of traditional finance with cryptocurrencies. The Ripple ecosystem allows market participants to make cross-border payments faster and cheaper without eliminating security.
Despite the litigation with the SEC and the limited application of XRP, this project is worthy of attention: the vision of Ripple is interesting and promising. However, investing in XRP, as in any other cryptocurrency, should be treated with caution and do not forget about the importance of doing your own research.
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