What is Ripple (XRP)? Price, History & Where To Buy

Ripple (XRP) is a cryptocurrency token that was launched in 2012. Ripple network aimed to optimize the way financial institutions handled transactions.

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The native cryptocurrency that facilitates transactions seamlessly and at a cheap fee quickly becomes among the most prominent cryptocurrencies and is known as the SWIFT killer.

The proposed transactions take place on the XRP ledger, software that enables the function of XRP.

How Ripple and XRP Works

It’s important to distinguish the difference between Ripple and XRP.

Ripple is the company behind the token and the blockchain technology – XRP is the cryptocurrency enabled by the software.

Ripple, previously known as Ripple Labs, works much like other blockchain companies. But, it continues explicitly to develop technology that aims to optimize the current international payments system.

Ripple developed the XRP cryptocurrency as a token that would reduce liquidity costs for businesses and financial institutions making cross-border transactions.

Ripple built RippleNet (Ripple network), which the company markets specifically to businesses and financial institutions as a seamless way to send money globally. RippleNet ecosystem consists of xCurrent, xRapid, and xVia.

XRP ledger is the software that facilitates XRP transactions – much like bitcoin transactions take place on the Bitcoin blockchain.

Unlike blockchains such as the Bitcoin blockchain, which enables decentralized peers to secure the network and validate transactions – the XRP ledger delegates those responsibilities solely to pre-determined network participants. Simply put, the only ones allowed to validate transactions on the XRP ledger are known as the Unique Node List.

What Is XRP Used For?

XRP is most commonly used for cross-border payments and has partnered with some major remittance platforms in the past. Most notably, a partnership with MoneyGram used the ripple network to facilitate payments globally.

Ripple primes itself as a one-stop-financial-services-shop in a sense – offering an array of financial products that allow financial institutions to interact globally with simple single API integration easily.

The simplicity of the setup makes it more efficient, more affordable, and much more reliable than conventional means used for cross-border payments.

XRP tokens are used for liquidity during cross-border payments, removing the need to pre-fund accounts. This helps curate a simple, almost instantaneous, and smooth payment process that is much cheaper for all parties involved.

The products that have been developed by Ripple allow developers and network participants to utilize blockchain technology to streamline the payment process.

The development of the Interledger Protocol, which is funded by Ripple, intends to promote transactional interoperability between cryptocurrencies and bank ledgers.

Where To Buy XRP?

XRP is currently the 6th largest cryptocurrency by market cap. It has garnered tremendous support as well as criticism from skeptics – though it still has a large community of supporters.

XRP is used as a medium of exchange and a store of value.

XRP can be purchased on several centralized crypto exchanges. Before you can buy, you’ll need to deposit funds on the crypto exchange and buy the tokens by placing an order.

These crypto exchanges are the safest place where you can buy, sell and store the XRP cryptocurrency.

Five of the most popular crypto exchanges are:

1. Binance (US Customers use Binance.US)
2. Gate.io
3. KuCoin
4. Bitfinex

Please note Coinbase no longer lists XRP on it’s exchange, so you’ll have to use one of the above to buy it.

All of the above exchanges allow users to buy, sell, transfer and store XRP in a digital wallet on the exchange. You can use your debit or credit card to purchase XRP.

If you intend on transferring your XRP tokens to a wallet off of the exchange, you’re limited to only a few options. The most common way to store your XRP off the exchange is in Ledger Nano or Trezor. You must use a wallet that is compatible with XRP.

How long have Ripple and XRP existed?

Ripple was founded in 2012 and was originally named OpenCoin, then Ripple Labs, before being aptly renamed only ‘Ripple‘ in 2015.

Additionally, XRP Ledger was previously named Ripple Open Payments System, then Ripple Consensus Ledger, before being named ‘XRP Ledger.’

XRP cryptocurrency has had quite a prolific crypto journey, reaching significant highs, but in recent years have been surrounded by a lot of controversy, investigations, and price volatility.

What’s controversial about Ripple and XRP?

Ripple (XRP) has been surrounded by an enormous amount of controversy and speculation. Most notably, since 2018, events have put XRP in the global spotlight. Let’s take a look at 3 of the top controversies surrounding Ripple and XRP.

1. Securities and Exchange Commission Lawsuit – Quite possibly, the most instrumental cryptocurrency lawsuit to date has been the SEC vs. Ripple lawsuit. In December 2020, the SEC filed a lawsuit against Ripple. It claimed that $1.3Bn was traded in XRP cryptocurrency as a security, but it wasn’t registered as a security with the SEC. The lawsuit is still currently underway.
2. 100 Billion XRP Supply Will Tank The Price – One of the most controversial aspects of XRP is its token supply and who was allocated massive portions of the supply. Only 55 billion tokens were made available to the public, while the remaining supply was given to insiders and founders. Jed McCaleb, a co-founder of XRP, received 9 billion XRP for his contribution to the project. He left Ripple and joined its competitor Stellar (XLM).
3. Network Is Centralized – Ripple aims to process international transactions more efficiently and affordably. Ripple relies on the XRP ledger to achieve this currency exchange. The process is much more centralized than standard bitcoin transaction confirmations, for instance. Ripple’s payment network utilizes a select Unique Node List approved to validate transactions. This is why many refer to Ripple as being centralized.

How many XRP Tokens are there?

At the time of writing, XRP has a circulating supply of 48.12 billion tokens.

XRP has a total supply of 99.99 billion.

Can XRP be mined?

XRP can’t be mined. One hundred billion tokens were created, and no more will ever be made.

Every transaction on the ripple network eliminates a tiny fraction of the supply. At the current elimination rate, it would take 70,000 years to destroy all XRP.

So, unlike how bitcoin mining works, the same is not valid for XRP.

What is the market cap of XRP?

The market cap of XRP is:

XRP market cap = total amount of coins in circulation x current market price of XRP

XRP Market Cap = 48,112,000,000 x $0.86 = $41.37Bn

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Ripple and XRP

Ripple’s (XRP) biggest competitors are blockchain projects that can process a substantial amount of transactions, have low transaction fees, and are suited to cater to the needs of major financial institutions.

Currently, its major competitor is Stellar (XLM). It should be noted that multiple banks are already using Ripple’s technology, which indicates that they have trust in the project.

What are the future plans for Ripple and XRP?

There is uncertainty about the future of Ripple because of the lawsuit underway. Once the lawsuit is resolved, there will be clarity regarding the future of Ripple.

Currently, the XRP token has been delisted on multiple exchanges. However, it remains regularly traded on platforms like Binance. XRP sales on many major exchanges still continue, despite the uncertainty surrounding the Ripple vs. SEC lawsuit.

Pros and Cons of Ripple and XRP: XRP Ledger & XRP Transactions

Pros

• Superior Cross-Border Payment Solution – XRP ledger can process transactions incredibly efficiently, at a much lower price than SWIFT transactions.
• RippleNet Is Being Used By Major Institutions – RippleNet has a history of successful partnerships, and its technology has serviced multiple influential institutions.
• Large Market Cap – It’s currently the 6th largest cryptocurrency by market capitalization. This is an indicator of interest by investors. It also indicates that the majority of crypto users have been exposed to XRP and Ripple.
• XRP Is Cheaper Than It Previously Was – XRP has previously exceeded $3 and is currently available at less than $1. This could be interpreted as being profitable, but others argue that it is still overvalued. The market is unpredictable, and the price volatility can only be speculated.

Cons

• It Isn’t As Decentralized – The XRP price is not even a consideration for many individuals because they would not invest in a cryptocurrency project that isn’t decentralized. Many individuals claim that the Unique Node List that consists of the networks only allowed validators is a clear sign of a centralized project.
• Token Supply Is A Major Concern – There are 100 billion tokens, and that is a major concern for many investors. The amount of tokens held by founders and insiders is another concern.
• SEC vs. Ripple Labs Lawsuit – The current lawsuit is a factor that has brought a lot of negativity to the project. Many claim that the project lacks transparency and, therefore, would not be a good investment. Until the lawsuit is resolved, the future of ripple and the XRP cryptocurrency remains relatively uncertain.

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