XRP Economy: Can Ripple Survive to Fight the SEC in Court?


When Bitcoin encouraged many startups to create distributed ledger-based digital currency, Ripple saw the potential in the underlying technology and created a decentralized payments network controlled by centralized nodes.

Ripple aims to approach banks and financial institutions and use blockchain technology to make the sluggish cross-border payments infrastructure efficient, promising instant transfers. Its competitor is SWIFT and not the banking system.

Indeed, the company partnered with hundreds of banks and financial institutions over the years across the globe, onboarding them into its network. It even formed a joint venture with Japan’s prominent financial conglomerate, SBI Holdings, to promote its products in the region.

Similar to any other decentralized ecosystem, Ripple’s products are fueled by its native XRP token, a “digital asset built for payments.”

“Ripple’s ODL relies on XRP as an intermediate currency for cross-border remittances,” Apifiny’s Haohan Xu explained.

Criticisms and the Final Push

Though XRP was marketed as a cryptocurrency, a major section of the crypto community believes that the token is too centralized to be a crypto. Ripple even controls the supply of XRP.

Another heated debate was alleging that XRP is a security, not a currency. This claim oozed the US financial market regulator as on December 23rd it officially filed a lawsuit against Ripple for selling unregistered securities. The complaint also named Ripple Labs CEO, Brad Garlinghouse and Executive Chairman, Chris Larsen.

“From at least 2013 through the present, Defendants sold over 14.6 billion units of a digital asset security called ‘XRP’, in return for cash or other…



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