Ripple’s XRP can be considered the most polarizing crypto asset that has ever existed because it causes the most extreme reactions in different people. On the one hand, XRP hodlers and enthusiasts believe that the asset will eventually revolutionize the financial system as it is known today, leading them to believe that it is better to buy XRP than to buy Ethereum or other more reliable options.
On the flip side, however, people who don’t like Ripple’s XRP think it’s not a good idea to have a crypto asset associated with a network of banks and other entities in the traditional financial system. .
In this article, you will find out everything you need to know about Ripple’s XRP and its future prospects.
What is XRP? – Understand the Ripple protocol
Created in 2011 by developer Ryan Fugge, entrepreneur Chris Larsen and programmer Jed McCaleb, Ripple is a distributed payment protocol. Therefore, XRP is Ripple’s native cryptocurrency.
The New York Times described Ripple as “a cross between Western Union and a bureau de change without the high fees” because it is not only a currency, but also a system in which any currency (for example, Bitcoin) can be traded.
During the protocol’s launch, its creators explained that “Ripple connects banks, payment providers, digital asset exchanges and businesses through Ripple Net to provide a frictionless experience for sending money to the global scale.
Simply put, the Ripple protocol enables low cost, secure and fast payments between individuals and financial institutions. The idea is to allow banks and entities to integrate Ripple’s protocol into their systems, allowing their customers to use the service.
Unlike other ecosystems, Ripple supports other tokens in its network. These tokens can represent fiat currencies or other assets, which allows for safe and instant payments in the best possible way.
As a result, Ripple has approached many companies – especially banks – by accepting other assets into its network and facilitating methods of transacting with these institutions.
Many crypto enthusiasts dislike Ripple’s approach, as it strays further from the ideal of most digital assets, which want to create a bankless way to conduct financial transactions.
Ripple’s XRP vs Major Crypto Assets – Who Wins the Long Term Battle?
Unlike Bitcoin and Ethereum, Ripple’s ecosystem does not have a mining process. Thus, 100 billion XRP has already been created, most of which is held in Ripple’s treasury. Nowadays, the total circulating supply of the asset is just over 43 billion XRP.
In the post-pandemic scenario, there is a new wave of enthusiasts who believe XRP is about to experience a big bull run. Additionally, analysts who have focused on tracking the cryptocurrency say 2021 could see the biggest XRP rush in recent years.
Indeed, XRP’s performance has improved significantly, especially given the current bear market and falling crypto prices for major crypto assets, such as Bitcoin and Ethereum.
In the opinion of some experts, XRP still has a chance to become a possible competitor for the world’s largest cryptocurrencies. While BTC has been around for much longer and at a much higher value, XRP has performed very well in the market given the Ripple vs SEC lawsuit.
Ripple vs SEC Lawsuit – An Updated Preview
In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, alleging that the company had raised more than $ 1.3 billion from the sale of XRP in bidding ‘unregistered bonds.
So far, Ripple has denied all of the SEC’s allegations and wants to end the lawsuit as soon as possible. However, with no settlement in sight, the case will likely continue until early 2022, as Jeremy Hogan, one of the lawyers involved in the case, predicted.
In mid-June 2021, a New York court extended the material fact finding deadline to October 15. However, this is not the only obstacle in the case. Lawyer James Fila – another analyst close to the case – listed all the important dates that are delaying the case.
On June 14, the judge also extended the search deadline for experts until October 15. Discovering experts requires gathering evidence from experts in their fields. On October 15, each side will also learn what the experts told the other side.
The deadline was originally set for July 2, to give both parties a little more time – although Ripple’s attorneys initially opposed the SEC’s extension request, saying the litigation “poses an existential threat to their business “.
It is impossible to predict the future of Ripple’s XRP, but many investors and hodlers are still convinced that this asset will return to the top of the crypto industry.
Without a doubt, XRP is controversial – it is not decentralized, does not offer clear incentives to investors, and is clearly a speculative asset. However, XRP’s greatest value lies in its loyal army of followers who believe in the project and still hope for the post-litigation recovery of the asset.