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Cryptocurrency

The future of the cryptocurrency Ripple.

By Pierre Grifter , on August 31, 2024 , updated on August 31, 2024 - 4 minutes to read
Positioning itself in second place behind the giant Bitcoin in 2018, Ripple’s cryptocurrency XRP attracted many businesses and independent traders. Notoriously present in the world of cryptocurrency, Ripple is a peer-to-peer network that provides a payment protocol for banking institutions. As a result, XRP is a token, a currency used to operate this protocol. Essentially, the Ripple network aims to carry out financial transactions securely, quickly, and at a lower cost as a replacement for the slower SWIFT system. But is it really worth buying XRP? And is Ripple’s future assured to be promising in the trading ecosystem?

Essential Features of Ripple


Essential Features of Ripple
Essential Features of Ripple

The Ripple network has capitalized billions of dollars in just a few years. It was established as a digital payment network for all types of financial transactions. The Ripple network is decentralized to allow empowerment and autonomy for banks. However, the participants, or validators, who are none other than banking institutions and research institutions (like MIT), are centralized, which is completely contrary to the ideology of cryptocurrency that aims to be decentralized and without a third party. It should also be noted that there are 99 billion XRP tokens of which:

  • 39 billion are in circulation

  • 6 billion are owned by Ripple Inc.

  • 55 billion are stored in an Escrow, which is a system involving a third party. However, they can be unlocked if certain conditions are met.


However, these unlocking conditions are neither clear nor transparent from Ripple, added to the fact that less than 50% of the XRP is available, part of which is held by Ripple, this has led to disinterest in the cryptocurrency space.

Lawsuit Filed by the SEC


The SEC, short for Securities and Exchange Commission, is an American organization that allows for the control and regulation of financial markets. The stock market watchdog, in other words.

In December 2021, the SEC filed a lawsuit against Ripple as well as two of its executives. But concretely, what does the SEC really accuse Ripple of? Well, it simply accuses it of selling securities without authorization. Yes, the SEC believes that XRP is indeed a financial security, and therefore authorization from the SEC was necessary before its creation in 2012, which Ripple did not obtain. And this is what the regulatory body accuses Ripple of. Thus, what was inevitable happened; Ripple will have to account to the SEC and defends itself against this regulatory body by claiming that the XRP token is an “unregistered security” and that it intended to sell it as such. But the SEC continues to maintain that XRP is indeed a share of Ripple Inc. The defense has requested access to what is discussed internally at the SEC regarding the legal status of the XRP token.

The new SEC administration, appointed by Joe Biden, will oversee the continuation of this trial and may resolve this dispute by agreement. To be continued.

What Is the Future of Ripple XRP?


Ripple made waves in the trading sphere when XRP increased its value by nearly 300% at the end of 2020. Since then, the gains have partially dissolved given their origin from airdrops to XRP holders. Everyone is wondering if XRP can return to that peak. On the other hand, the future of Ripple in a decade remains quite uncertain because, although the cryptocurrency space is booming, impressive drops in prices as well as rapid surges can occur unexpectedly. In summary, the potential for the increase and decrease of XRP is extremely high and rapid.

Finally, since the introduction of cryptocurrency on a large scale is still in its early stages, the support for this technology in a sustainable manner can only be beneficial for investors and independent traders in the long term.

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