Posted on

Ripple Prepares To Shake Up $150B Market With Imminent Launch Of New Stablecoin

In a notable development, blockchain developer Ripple Labs recently announced its plans to launch a stablecoin pegged 1:1 to the US dollar (USD). 

Ripple Enters Booming Stablecoin Market

According to the company’s announcement on Thursday, the stablecoin’s reserves will consist of US dollar deposits, short-term US Treasury bills, and other undisclosed cash equivalents. All of these will be audited by a third-party accounting firm. Ripple plans to publish monthly certifications to ensure transparency.

With the stablecoin market currently valued at around $150 billion, Ripple’s entry is significant. The market is projected to exceed $2.8 trillion by 2028, highlighting the potential for growth and adoption. 

Ripple CEO Brad Garlinghouse emphasized the importance of partnerships with compliant, crypto-native players for success in this space. He highlighted Ripple’s track record in launching new products and acquiring companies across various market cycles. 

Garlinghouse believes that this move is not only a significant step for Ripple but will also positively impact the XRP Ledger (XRPL) community, driving more use cases, liquidity, and opportunities for developers and users.

Institutional And DeFi Adoption Across Multiple Ecosystems

Initially, the stablecoin will be available on the XRP Ledger and Ethereum (ETH) blockchains. Ripple plans to expand its presence to additional blockchains and decentralized finance (DeFi) protocols and applications. 

Monica Long, Ripple President, stated that issuing the stablecoin on XRPL and Ethereum will unlock new opportunities for institutional and DeFi use cases across multiple ecosystems. Long further stated:

The XRP Ledger’s native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem

Ultimately, Ripple’s stablecoin is expected to launch later this year, pending regulatory approval in the US market. The introduction of this stablecoin is a significant development that has the potential to reshape the stablecoin market while offering new opportunities for institutions, developers, and users alike.

Ripple

Featured image from Shutterstock, chart from TradingView.com 

Posted on

Ripple Provided Major XRP Price Discounts To Select Investors, SEC Claims

In the XRP lawsuit, the US Securities and Exchange Commission (SEC) filed its motion for remedies and entry of final judgment against Ripple, proposing a suite of penalties that includes injunctive relief, disgorgement of profits, and a notable $2 billion in civil penalties today. But that’s not the whole story as the 210-page document contains some interesting statements and assertions.

Did Ripple Favor Select Institutional Investors?

One of the assertions made in the SEC document and pointed out by XRP community lawyer Bill Morgan was a key revelation that Ripple engaged in discriminatory pricing practices, offering substantial discounts on XRP tokens to a select group of institutional investors. This practice, the SEC alleges, created an uneven playing field, benefiting certain “favored” investors at the expense of others.

XRP community lawyer Bill Morgan provided a summary of this aspect, highlighting the potential damage to Ripple’s standing in the eyes of institutional investors. “The SEC’s brief is a possible problem for Ripple beyond this case. The SEC is able to argue that there were two groups of institutional sales investors (it calls them favored and unfavored) and Ripple offered one group significant discounts in XRP price over the other group that did not receive them,” Morgan noted via X (formerly Twitter).

He further delved into the SEC’s claim that such practices harmed the “unfavored” group of investors to the tune of $480 million, a figure based on assumptions that Morgan suggests need thorough examination. “The evidence of causation of this alleged harm seems thin,” he added.

The SEC’s filing goes on to argue that Ripple’s sales tactics, specifically the discounted sales to certain investors, directly contributed to downward pressure on the overall market price of XRP. This point is not just a matter of regulatory compliance but also raises the specter of legal action from those institutional investors who may feel aggrieved by not being privy to the same discounts.

Morgan also touched upon the ramifications of these actions being classified as investment contracts by the SEC, saying, “As these sales to institutions were found to be investment contracts, it means that this offering of discounts to some but not other institutions is the very disclosure according to the SEC that should have, and would have been made to the institutions, if the sales to institutions had been registered.”

He further noted that these claims by the SEC are also not great for the reputation of Ripple. “Not sure this revelation is great for Ripple’s reputation with institutional investors,” Morgan remarked.

Ripple CLO Alderoty Responds

Ripple’s Chief Legal Officer, Stuart Alderoty, also issued a broad response to the SEC’s filing via X, vehemently disputing the narrative presented by the regulatory body. Alderoty stated, “Our response will be filed next month, but as we all have seen time and again, this is a regulator that trades in statements that are false, mischaracterized and designed to mislead.”

He further attacked the SEC for its illegitimate reasoning, stating: “They stayed true to form here. Rather than faithfully apply the law, the SEC remains bent on wanting to punish and intimidate Ripple – and the industry at large. We trust the Court will approach the remedies phase fairly.”

At press time, XRP traded at $0.64365.

XRP price

Posted on

What Is Ripple?

Ripple, one of the financially strongest companies in the entire crypto sector, blends traditional banking and finance with digital assets. This comprehensive analysis addresses the question “What is Ripple?” and looks at its origins, technological advances and products, market dynamics, a potential IPO, and the ongoing legal battle with the US Securities and Exchange Commission (SEC).

[toc]

What Is Ripple?

Ripple occupies a unique niche in the blockchain universe, setting itself apart from typical cryptocurrency projects. Unlike many of its peers aiming to change banking as we know it, Ripple seeks collaboration with the financial system. At its core, Ripple operates on a public database known as the XRP Ledger (XRPL), characterized by transparency and open access.

The Ripple protocol diverges significantly from the likes of Bitcoin as it eschews the concept of mining, where transactions are confirmed and the network is secured by miners. Instead, Ripple relies on validators. These validators play a crucial role in maintaining the network’s integrity. For instance, when a transaction is initiated—say, a user transferring funds to another—the network’s validators must reach a consensus to confirm this transaction.

Notably, most validators are operated by Ripple Labs and its partners. They are responsible for confirming all transactions within the Ripple network. This distinctive system empowers Ripple to execute transactions with remarkable speed and cost-efficiency. However, it also leads to a higher degree of centralization compared to networks like Bitcoin or Ethereum.

Central to Ripple’s functionality is the XRP token, often dubbed as the “bank coin.” It primarily serves as a bridge currency for fiat transactions, embodying the essence of Ripple’s vision to streamline global financial exchanges. The XRP token thrives on the XRP Ledger (XRPL), a manifestation of distributed ledger technology (DLT). This combination of technology and vision positions Ripple as a unique entity in the blockchain space, offering a blend of innovation and pragmatic collaboration with existing financial structures.

Key Aspects Of Ripple And XRP

  • No Mining, Only Validators:  The XRP Ledger does not employ mining for transaction confirmation or network security. Instead, Ripple relies on validators. These validators are crucial in confirming transactions. Their consensus keeps the network secure and efficient.
  • XRP: The XRP token is central to Ripple’s ecosystem. It is pre-mined, meaning its tokens were created before the project’s public launch. Ripple advocates for XRP due to its minimal transaction fees, quick settlement, and scalability, handling up to 1,500 transactions per second.
  • XRP Ledger (XRPL):  This ledger is key to recording data like balances and transfers. The XRPL facilitates quick settlements, allowing payments in local currency for involved parties, and supports bridging currencies for transactions.
  • Unique Node List (UNL): The XRPL operates through a Unique Node List, comprising 35 validators. For a transaction to be recorded, at least 80% of these nodes must agree on its legitimacy.
  • RippleNet: Separate from the XRPL, RippleNet is an exclusive network developed by Ripple for payment and exchange. It does not use XRP and offers instant settlement, tracking of cross-border payments, and interaction within a unified framework for financial institutions.
  • Ripple’s Use Cases: Ripple envisioned XRP to operate as an alternative to traditional systems like SWIFT, enhancing international payment efficiency. Furthermore, Ripple wants to establish itself as a crypto liquidity provider as well as in the field of Central Bank Digital Currencies (CBDCs).

Unveiling The Origins And History Of Ripple

Ripple’s inception can be traced back to a concept by Ryan Fugger in 2004. He envisioned a decentralized monetary system, Ripplepay, to empower individuals in their financial interactions. This idea laid the groundwork for what would eventually become Ripple.

In 2012, the journey took a significant turn. Jed McCaleb, known for his work on the Mt. Gox exchange, and Chris Larsen, a renowned figure in the fintech sector, approached Fugger. They proposed a digital currency system utilizing the Ripple protocol. This collaboration led to the establishment of OpenCoin.

Later, in 2013, OpenCoin was rebranded to Ripple Labs. It was during this time that Ripple began to solidify its unique approach to the blockchain and cryptocurrency world. Unlike its contemporaries, which focused solely on a decentralized model, Ripple sought to integrate with the existing financial system, particularly targeting the inefficiencies in cross-border payments.

The Significance Of Ripple XRP In The Ecosystem

XRP, as Ripple’s native cryptocurrency, plays a pivotal role in the Ripple ecosystem. Its significance stems from several unique features and functionalities that it brings to Ripple’s network.

  • Bridge Currency: One of the primary uses of XRP is as a bridge currency in international transactions. This role is crucial in RippleNet’s offering of efficient and cost-effective cross-border payment solutions.
  • Transaction Efficiency: XRP stands out for its transaction speed and minimal fees. The network can process 1,500 transactions per second, with each transaction costing a minimum of 0.00002 XRP.
  • Scalability And Environmental Sustainability: XRP’s pre-mined status means all its tokens were created before the network went live.
  • Liquidity Source: XRP serves as a source of liquidity in Ripple’s On-Demand Liquidity product (now Ripple Payments).
  • Decentralized Exchange And Cross-Chain Integration: The XRPL DEX, the decentralized exchange on the XRP Ledger, has been operational since 2012. It provides a platform for trading XRP and other cryptocurrencies with minimal fees.
  • Legal and Regulatory Challenges: The role of XRP has been subject to scrutiny, especially following the SEC’s lawsuit against Ripple. The lawsuit’s focus on whether XRP should be classified as a security has implications for its use and trading, particularly in the US market.

What Is The Difference Between XRP And Ripple?

Understanding the distinction between XRP and Ripple is crucial for grasping the full scope of what Ripple Labs Inc. offers in the blockchain and cryptocurrency domain.

Ripple – The Company: Ripple refers to the technology company, Ripple Labs Inc., which focuses on creating and managing a global payment network. Founded in 2012, Ripple’s primary mission is to transform the world of financial transactions, making them faster, more secure, and less costly. Ripple develops several blockchain-based products, with RippleNet being its flagship network that facilitates cross-border payments.

XRP – The Cryptocurrency: XRP, on the other hand, is a digital asset or cryptocurrency that operates on the XRP Ledger. It was first developed by Ryan Fugger and later enhanced by Jed Caleb and Chris Larsen – which led to what we now know as XRP.

Use Cases Of Ripple

Ripple and its associated technology offer diverse applications in the financial sector, notably in cross-border payments, crypto liquidity, and central bank digital currencies (CBDCs). Each of these use cases represents a significant advancement in how financial transactions and operations are conducted in the modern era.

Cross-Border Payments

Ripple’s technology, particularly through RippleNet and Ripple Payments, significantly streamlines cross-border payments. Traditional international money transfers are often slow, expensive, and opaque. Ripple addresses these issues by providing a more efficient, transparent, and cost-effective solution.

RippleNet enables rapid transaction settlements and reduces the operational costs associated with cross-border payments, making it an attractive option for banks and other financial institutions. The use of XRP as a bridge currency in Ripple’s On-Demand Liquidity service (new: “Ripple Payments”) further enhances this efficiency by eliminating the need for pre-funding accounts in destination countries, thus freeing up capital and reducing liquidity costs.

Crypto Liquidity (“Liquidity Hub”)

The Ripple Liquidity Hub serves as a groundbreaking platform for businesses to manage their crypto liquidity needs effectively. Designed primarily for financial institutions and other enterprises, it provides a streamlined way to buy, sell, and hold digital assets.

A key aspect of the Ripple Liquidity Hub is its ability to offer optimized crypto liquidity. It achieves this by accessing aggregated liquidity pools from various sources, such as exchanges and over-the-counter desks. This ensures that businesses can obtain the best possible prices for digital assets across a range of venues.

Furthermore, the platform simplifies digital asset management for enterprises. It comes equipped with an enterprise-level dashboard that facilitates the efficient management, trading, and reporting of digital assets. This feature is particularly beneficial for businesses looking to streamline their crypto portfolio management.

One of the most innovative aspects of the Ripple Liquidity Hub is its expansion of access to capital. The platform removes the need for businesses to hold pre-funded capital positions with multiple liquidity venues, thanks to its post-trade settlement feature. This aspect significantly enhances capital efficiency for enterprises.

In its commitment to interoperability and the inclusion of various digital assets, the Ripple Liquidity Hub initially supports a diverse range of digital assets including BTC, ETH, LTC, ETC, BCH, and XRP, with the availability varying by geography. Ripple plans to further expand its offerings, demonstrating its commitment to fostering an inclusive and competitive crypto market.

Liquidity Hub
Central Bank Digital Currency

Ripple’s engagement in the development of Central Bank Digital Currencies (CBDCs) is a significant move towards modernizing the financial ecosystem. Ripple has launched a dedicated platform for CBDCs, aiming to provide a seamless end-to-end solution for central banks, governments, and financial institutions to issue and manage their own digital currencies.

Ripple’s CBDC platform is designed to address multiple use cases, including both wholesale and retail CBDCs, as well as issuing stablecoins. The platform’s capabilities extend to end-user wallets, allowing users to securely hold digital currencies and make payments for goods and services, similar to other banking apps. This includes functionality for offline transactions and non-smartphone use cases, broadening the accessibility of digital currencies.

Notably, Ripple has been recognized as a leader in the CBDC space, topping competitive leaderboards by Juniper Research and CB Insights for its CBDC technology.

what is Ripple CBDCs

Ripple’s involvement in CBDC pilot projects across various nations showcases its commitment to supporting the development and implementation of digital currencies at the national level. Remarkably, the company has partnered with several countries, including Palau, Bhutan, and Montenegro, to explore and develop their respective CBDCs / stablecoins.

What Is RippleNet?

RippleNet is a distributed network developed by Ripple, designed to facilitate real-time, cross-border transactions. As a peer-to-peer distributed application, it maintains a virtual ledger that emulates the roles of Nostro and Vostro accounts commonly used in international banking.

RippleNet is known for its two primary layers: a bi-directional messaging layer and a settlement layer. The messaging layer handles the communication of transactions, while the settlement layer ensures the final transfer of funds.

It operates within a cloud environment hosted by Ripple, which substantially lowers technical infrastructure costs for its users. It integrates with financial institutions’ middleware through API operations, effectively replicating funding into RippleNet virtual accounts.

Importantly, RippleNet is SOC 2 certified, ensuring high standards of security, availability, confidentiality, and privacy. It improves the cross-border payment experience by offering efficient messaging, optimized settlement, and unique liquidity solutions.

RippleNet’s clientele includes a diverse range of sectors, including traditional remitters, digital remitters, FX brokers, payment service companies, and banks (encompassing global tier-1 banks, multi-country regional banks, local banks, and digital banks), as well as multinational businesses.

What Is Ripple’s On-Demand Liquidity (New: Ripple Payments)?

Ripple’s On-Demand Liquidity (ODL), now known as “Ripple Payments,” is a liquidity management solution that facilitates instant and efficient cross-border money transfers without requiring pre-funding in the destination market. It utilizes XRP as a bridge currency to source liquidity on demand, enabling real-time fund movement.

The evolution of ODL has led to significant improvements in efficiency and user experience. Initially, the product required payments to be originated in fiat currency, converted to XRP, and then again converted to fiat currency in the destination country. The refined Ripple Payments allows customers to send XRP for cross-border payments directly through a crypto wallet, leveraging the wallet to source XRP on demand.

What is Ripple ODL

This reduces friction in the payment flow and provides greater flexibility and choice to customers. It also streamlines the onboarding process for new partners and currencies, enabling multiple currencies through a single wallet.

The adoption of Ripple Payment has grown, with innovative companies like FlashFX using it to support payments in new currencies like GBP and EUR, which were not previously supported. This expansion is part of Ripple’s broader global momentum, especially in regions like Southeast Asia, where there is significant growth due to progressive crypto regulations and the presence of innovative companies. Companies like Novatti and Tranglo, for instance, play a vital role in the network as fiat on and off-ramps.

Ripple’s Potential IPO And Price Predictions

Ripple’s potential Initial Public Offering (IPO) has been a topic of significant interest within the cryptocurrency and financial communities. While Ripple has not officially announced plans for an IPO, there are vivid speculations surrounding this possibility.

In a recent analysis, Wall Street expert Linda Jones suggested that Ripple’s pre-IPO shares could potentially rise by 2,000%. She pointed out that the current valuation of Ripple’s pre-IPO shares on Linqto stands at $35 per share. This translates to a $5.7 billion valuation.

Jones emphasized the significance of the company’s substantial holdings in XRP, with 42 billion XRP in escrow. They could contribute to an aggregate worth of approximately $107 billion, far exceeding its current valuation on Linqto. This analysis considers the potential resolution of the legal battle with the SEC and its impact on XRP’s price, indicating optimism about Ripple’s future IPO valuation​.

Ripple Vs. The SEC: A Comprehensive Overview

As of early 2024, Ripple Labs has achieved several notable victories against the United States Securities and Exchange Commission (SEC). Here are the key developments:

  • Summary Judgment Win For Ripple (July 13, 2023): Ripple Labs achieved a partial victory in its legal battle with the SEC. The US District Court for the Southern District of New York ruled that XRP sales on exchanges and through algorithms did not constitute investment contracts. Consequently, these sales are not subject to federal securities laws.  However, the court found Ripple’s direct institutional sales in violation of these laws. It deemed them unregistered offers and sales of investment contracts.
  • Denial Of SEC’s Interlocutory Appeal (October 3, 2023): The SEC’s attempt to appeal the summary judgment loss was denied by Judge Torres. This marked a significant setback for the regulator and underlined Ripple’s strengthening position in the lawsuit.
  • SEC Drops Claims Against Ripple Executives (October 19, 2023): The SEC withdrew its charges against executives Brad Garlinghouse and Christian Larsen. This decision narrowed the lawsuit’s focus solely on Ripple Labs.
  • Pending Trial and Remedies Phase: The trial, set to occur between April and June 2024, will be critical for Ripple Labs. The main focus will be on the institutional sales of XRP worth $770 million, which were deemed unregistered securities sales. The remedies phase will determine the penalties for these sales, with the SEC potentially seeking the entire amount as fines.

For a more in-depth look at the XRP lawsuit, read our dedicated article.

FAQ: What Is Ripple

What Is Ripple?

Ripple is a technology company that specializes in digital payment protocols and currency exchange networks. Its real-time gross settlement system and the cryptocurrency XRP are well-known features.

Will Ripple Replace SWIFT?

Ripple, while focused on enhancing global financial transactions, is not set to fully replace SWIFT. However, the company’s faster and more cost-effective solutions offer a competitive alternative.

What Distinguishes XRP From Other Cryptocurrencies?

XRP stands out among cryptocurrencies like Bitcoin and Ethereum due to its high speed and low transaction costs. This makes it particularly suited for rapid cross-border payments.

Will Ripple Go Public?

Ripple plans to consider going public once it resolves its legal battle with the SEC. The potential IPO would depend on the outcome of the lawsuit and market conditions.

Is Ripple Stock Worth Anything?

Currently, Ripple is a private company, so it does not have publicly traded stock. An assessment of the company’s value can only occur if it undergoes an IPO and becomes a public company.

Is XRP The Same As Bitcoin?

No, XRP and Bitcoin are different. Bitcoin is a decentralized digital currency without a central bank, operating on a peer-to-peer network. Ripple uses XRP for its payment technology and is renowned for its rapid transaction processing times.

Does Ripple Have A Good Future?

Ripple’s future is subject to various factors. These include the outcome of its lawsuit with the SEC, market adoption, and overall cryptocurrency market trends. Its focus on payment solutions presents potential growth opportunities.

Who Invented Ripple?

Chris Larsen and Jed McCaleb co-founded Ripple. They founded the company, initially known as Opencoin, in 2012 before renaming it to Ripple.

Posted on

Ripple Initiates Large XRP Transactions Post Legal Setback

Ripple Labs, a leading cryptocurrency payment firm, has been seen moving millions of XRP tokens following the United States Securities and Exchange Commission’s (SEC) recent victory in a legal dispute.

Ripple Moves Millions Of XRP As Price Holds Steady

According to a recent report, Ripple Labs moved a whopping 120 million XRP tokens valued at about $60.8 million. The move has caused quite a stir within the XRP community and heightened sell-off anxiety in the face of increased market volatility.

This comes after the payment firm experienced a legal setback in court on Monday. The SEC’s motion to force Ripple to provide its financial statements for XRP was granted by the Southern US District Court of New York.

It was reported by Bithomp that the aforementioned funds were transferred to a Ripple-related wallet that was used for massive transfers. Data from Bithomp revealed that the wallet address rBg2Fu…uJ4vt5x1o91m moved the funds to a separate wallet address rP4X2hTa7…XvPz7XZ63sKxv3. This indicates that the transaction might include the transfer of such large amounts using other wallets or companies under Ripple’s control.

Furthermore, the transfer might just be connected to Ripple’s payment services. As a result, it will allow banks to utilize XRP to send funds across borders almost instantly and for a minimal cost. 

It is noteworthy that the address that received the funds has transferred a notable portion of the XRP tokens. However, the address still contains about 90 million XRP valued at approximately $45 million.

Bithomp also reported that the firm was seen moving about 53.75 million XRP tokens valued at about $27.5 million. Data from the on-chain platform shows that the wallet address rKveEy…ZsoGMb3PEv transferred the funds to another wallet address rPfSrrKY…R7g1tYzDDJoAys.

The Payment Firm Brings XRP To The US Market

Ripple has announced its plan to transform international payments in the US with XRP and its payment services. According to the firm, they will be introducing “new product updates that will cover the majority of US states.”

These fresh products are going to be powered by its Money Transmitter Licenses (MTLs). Initially, Oliver Segovia, Senior Director and Head of Product Marketing for Payments at Ripple, shared the announcement on Linkedin. 

Segovia explained that although Ripple’s global headquarters is located in the US, 90% of its businesses serve organizations outside. Specifically, he acknowledges that for the last three years, the firm has remained somewhat quiet in the US market.

Despite these developments, XRP’s price has still been down by 5.42% in the past week, holding steady at $0.50. Interestingly, its trading volume has increased by over 25% in the past 24 hours.

Ripple

Posted on

WHAT IS XRP LEDGER (XRP)?

XRP Ledger, created by Ripple Labs Inc., is an open-source blockchain technology and digital asset. This means that developers can contribute to its development and enhance its functionality. XRP serves as the native cryptocurrency of the XRP Ledger and is the commonly recognized name for it. The XRP Ledger is purposefully designed to enable swift, cost-effective, and secure transactions. It functions as a distributed ledger, where transaction records are stored across a network of validators, which are participating computers, ensuring the integrity of the ledger.

XRP has garnered significant recognition for its ability to facilitate expeditious and streamlined cross-border payments. Its primary objective is to enhance liquidity and establish connections between diverse currencies, enabling seamless value transfers for both financial institutions and individuals across international borders. Ripple, the entity responsible for XRP, has forged partnerships with numerous financial institutions to investigate the potential of XRP in the realms of remittances and international settlements.

It is imperative to emphasize that although XRP is commonly linked with Ripple, the XRP Ledger functions autonomously, separate from the company. XRP can be exchanged on different cryptocurrency platforms and stored in digital wallets that are compatible with the XRP Ledger.

Additionally, there is a diverse range of cryptocurrency exchanges that support the XRP Ledger (XRP) for individuals interested in buying, selling, or trading XRP. Some notable examples include Binance, Coinbase, Kraken, BitStamp, Huobi, and more.

Founders Of XRP Ledger (XRP)

In early 2011, developers David Schwartz, Jed McCaleb, and Arthur Britto were intrigued by Bitcoin but concerned about its energy consumption and scalability issues. They aimed to create a more sustainable system for value transfer. Their predictions about Bitcoin’s energy usage were proven right when estimates revealed that Bitcoin mining consumed more energy than Portugal in 2019. They also foresaw the risks of one miner or collusion of miners gaining over 50% of the mining power, which remains a concern today as mining power concentrates in China.

Undeterred, the developers continued their work and created a distributed ledger called Ripple, with a digital asset initially called “ripples” (later referred to as XRP). The name Ripple encompassed the open-source project, the unique consensus ledger (Ripple Consensus Ledger), the transaction protocol (Ripple Transaction Protocol or RTXP), the network, and the digital asset. 

To eliminate confusion, the community started referring to the digital asset as “XRP.” By June 2012, Schwartz, McCaleb, and Britto completed the code development and finalized the Ledger.

Ripple XRP Ledger

How XRP Ledger (XRP) Works

The XRP Ledger represents a pioneering blockchain technology that places a strong emphasis on scalability and interoperability. This focus enables the ledger to offer a wide array of possibilities for diverse applications that surpass the realms of traditional financial systems.

By demonstrating the capacity to handle substantial transaction volumes and foster seamless connectivity among different assets, the XRP Ledger stands poised to bring about a revolution across multiple industries and ignite innovation. Its scalable and interoperable nature creates opportunities for novel use cases and transformative solutions within the blockchain ecosystem. 

Prominent Features Of XRP Ledger

Consensus Ledger

Functioning as a distributed and decentralized ledger, the XRP Ledger stores the transaction history across an independent network of validators. Every validator preserves a copy of the ledger, and transactions undergo validation and agreement via the consensus algorithm. This approach ensures that the ledger’s transaction history is securely stored and that transactions are verified and approved through a collaborative process among validators. By employing this distributed and decentralized framework, the XRP Ledger establishes a reliable and transparent system for recording and validating transactions.

Gateways and Interoperability

The XRP Ledger enables the establishment of gateways, which are entities responsible for issuing and redeeming assets on the ledger. These gateways play a crucial role in bridging various currencies and assets, fostering seamless interoperability across different financial systems.

By facilitating the transfer and exchange of diverse assets, the gateways enhance the connectivity and compatibility between different forms of value representation. This feature of the XRP Ledger promotes greater efficiency and accessibility in cross-border transactions and opens up opportunities for enhanced liquidity and streamlined financial operations.

Transaction Speed and Scalability

Engineered with scalability and rapid transaction settlement in mind, the XRP Ledger (XRP) is adept at processing a substantial number of transactions per second. With the capability to settle transactions within a matter of seconds, the ledger is well-suited for a wide range of use cases that demand swift and efficient transaction execution.

Its high scalability and speedy transaction settlement empower businesses and individuals alike to conduct seamless and timely transactions, fostering enhanced productivity and responsiveness in various applications and industries.

Consensus Algorithm

Within the XRP Ledger, a distinctive consensus algorithm known as the Ripple Protocol Consensus Algorithm (RPCA) is employed. Diverging from conventional proof-of-work (PoW) or proof-of-stake (PoS) algorithms, RPCA relies on a group of trusted validators to authenticate and validate transactions. These validators assume the crucial role of collectively establishing consensus regarding the sequence and legitimacy of transactions on the network. By leveraging this innovative consensus mechanism, the XRP Ledger ensures the integrity and reliability of its transaction validation process, providing a secure and efficient environment for conducting business.

Native Cryptocurrency (XRP)

XRP operates as the inherent digital currency of the XRP Ledger, serving multiple purposes, such as facilitating transactions, offering liquidity, and bridging diverse currencies. As a medium of value exchange, XRP can be transferred between various entities on the XRP Ledger, enabling seamless transactions and facilitating the exchange of value. This versatile cryptocurrency plays a vital role in supporting the functionality and efficiency of the XRP Ledger ecosystem.

The Impact Of XRP On The Financial Industry

Undoubtedly, the XRP Ledger, along with its native currency XRP, has made a notable impact on the financial industry, bringing forth a range of positive innovations across various important aspects such as:

Decentralized Finance (DeFi)

The XRP Ledger’s utilization of smart contracts and tokenization creates possibilities for decentralized finance (DeFi) applications, paving the way for the development of groundbreaking financial services like lending, borrowing, and decentralized exchanges. With its rapid and scalable nature, the XRP Ledger provides an ideal foundation for constructing DeFi applications, potentially extending financial services to underserved communities and diminishing dependence on conventional intermediaries.

Asset Tokenization

The capacity of the XRP Ledger to tokenize tangible assets like real estate, art, and commodities has the potential to unleash liquidity for assets that have historically lacked it. Through the representation of these assets as digital tokens on the ledger, fractional ownership becomes feasible, enabling enhanced accessibility and transferability. This breakthrough can introduce fresh investment prospects and enhance market efficiency.

Cross-Border Payments

The swift transaction settlement and economical fees offered by the XRP Ledger make it an attractive choice for cross-border payments. Its efficient currency-bridging capabilities simplify and expedite international transactions, potentially reducing expenses and enhancing liquidity for financial institutions. This can result in expedited and cost-effective remittances, benefiting both businesses and individuals.

Liquidity and Market Efficiency

The XRP Ledger’s utilization of XRP as a bridge currency and liquidity tool has the potential to bolster market efficiency and enhance liquidity for diverse assets. By enabling seamless value exchange across different currencies, the XRP Ledger contributes to improved market liquidity, simplifying the process of buying, selling, and trading assets for users. This heightened liquidity has the capacity to foster more efficient markets and enhance the process of price discovery.

XRP Distribution And Price Dynamics 

The distribution of XRP tokens by Ripple Labs is a nuanced process that goes beyond a simple monthly release schedule. Currently, the majority of XRP is held in 16 escrow contracts, and their release is influenced by multiple factors, such as market conditions and ecosystem adoption. The original 55-month distribution projection was an estimate, and Ripple has the ability to adjust the pace based on their assessment.

Certainly, this distribution strategy impacts the price of XRP. A significant influx of XRP could potentially exert downward pressure on its value. However, attributing price fluctuations solely to this factor would be narrow-minded. The overall market sentiment towards cryptocurrencies, demand from financial institutions, regulatory developments, and news related to Ripple all contribute significantly. To truly understand the price action of XRP, a comprehensive analysis of these intertwined factors is necessary, recognizing the intricate interplay between Ripple’s distribution strategy and the dynamic cryptocurrency landscape.

Tokenomics Of XRP Supply

XRP has a fixed supply of 100 billion tokens, making it a pre-mined cryptocurrency with no possibility of additional token creation. Only a fraction of the tokens are actively traded, while 20 billion went to the founders. The distribution involves 55 smart contracts that release 1 billion tokens monthly over 55 months, resulting in a monthly increment of 1 billion tokens. The circulating supply is around 53.7 billion tokens, with the remaining held in escrow.

XRP tokenomics

Over 60% of the total supply is concentrated in the top 100 wallets, raising decentralization concerns. Ripple owns 6.5 billion XRP, adjusting the circulating supply to approximately 47 billion tokens.

XRP exhibits a mild deflationary trend from burning fees, reducing the total supply to about 99,988,221,902 XRP.

Buying XRP Coins

Purchasing XRP coins can be a relatively straightforward procedure; however, the available choices cater to diverse levels of experience and comfort. Here is a breakdown of different approaches tailored to meet your specific requirements:

Beginner-Friendly Exchanges

Coinbase and Binance are user-friendly platforms suitable for newcomers. They provide intuitive interfaces, clear instructions, and customer support to assist users throughout the process.

Peer-to-Peer (P2P) Exchanges

Platforms like Paxful are P2P exchanges that enable direct XRP purchases from other individuals. This decentralized approach offers privacy and flexibility but requires caution when evaluating counterparties and following safety measures.

Decentralized Exchanges (DEX) 

Uniswap is an example of a DEX platform that operates on blockchains. They facilitate direct peer-to-peer trading without intermediaries, providing enhanced security and control over funds. However, using DEX platforms will require compatible wallets.

Uniswap

Tracking Prices of XRP Ledger (XRP)

To effectively track the prices of XRP Ledger (XRP), the digital asset native to the XRP Ledger, and stay up to date with its market movements and fluctuations, there are several reliable methods and platforms that you can utilize, such as widely recognized cryptocurrency tracking platforms like CoinMarketCap

XRP coinmarketcap

CoinMarketCap is a highly regarded platform for monitoring cryptocurrencies, offering extensive data on a diverse range of digital assets, such as XRP Ledger (XRP). Users can explore the XRP page on CoinMarketCap to access up-to-the-minute price updates, historical data, market trends, and other pertinent information relating to XRP. CoinMarketCap serves as a trusted resource for individuals seeking to track and analyze the performance of XRP Ledger within the global cryptocurrency market.

Ripple Lawsuit With Securities And Exchange Commission (SEC)

The Ripple vs. SEC legal dispute, which began in December 2020, has a profound impact on XRP. The SEC accuses Ripple of conducting an unregistered securities offering through XRP sales, while Ripple argues that XRP is a utility token for cross-border payments and not a security. This ongoing battle has caused turbulence for XRP, resulting in price volatility and adoption uncertainty. The outcome of the case will have significant implications for XRP and the broader cryptocurrency industry.

The lawsuit has led to a hesitant market as businesses and individuals are cautious about embracing XRP due to the uncertainty surrounding its classification. The resolution will determine whether XRP’s utility as a token will prevail or if the SEC’s classification as a security will cast a long shadow over its future. As the market awaits a definitive answer, the trajectory of Ripple’s digital creation remains uncertain.

Conclusion

XRP Ledger (XRP) boasts an established name, a decentralized network, and lightning-fast, low-cost transactions. This has cemented its role as a preferred bridge currency for cross-border payments.

Despite facing legal challenges, XRP has an impressive track record as one of the pioneering cryptocurrencies, gaining widespread adoption among major financial institutions through RippleNet. The community’s dedication and the project’s foundational strengths provide a solid basis for potential success. However, the outcome of the SEC lawsuit will be a crucial determinant in shaping the future of XRP, whether it will be positive or negative.

Nevertheless, navigating the world of XRP necessitates careful consideration. While some may prioritize user-friendly platforms for entry, experienced traders might seek advanced features offered by decentralized exchanges (DEXs).

Regardless of your experience level, remember that cryptocurrencies remain volatile, and responsible investing practices are paramount. Consider these factors, research, and choose the path that aligns with your personal financial goals and risk tolerance.

Posted on

Ripple Locks Away 800 Million XRP In Escrow, Impact On Price?

Ripple Labs, a leading American-based payment firm has locked away a substantial amount of XRP tokens in its escrow wallet as part of its monthly unlock program to help bolster its ecosystem and XRP.

Ripple Takes Back 800 Million XRP 

A recent report from on-chain tracker Whale Alert revealed that Ripple took back about 800 million XRP tokens. This is no surprise, as the stated transaction has been a recurring outcome by the payment firm.

The payment firm locked the aforementioned funds after its monthly 1 billion XRP release, which has caught the attention of the crypto space. According to Whale Alert, the firm carried out the transaction in two distinct transfers. 

For the first transaction, Ripple locked away 500 million XRP tokens, valued at $253 million at the time of the report. Data from XRPScan shows that the 500 million XRP were initially transferred from “Ripple 23” to “Ripple 11” wallets before they were locked away.

Meanwhile, the second transaction saw 300 million XRP valued at about $151 million being transferred to the company’s escrow wallet. Whale Alert revealed the transaction was carried out by another wallet address identified as “Ripple 10,” according to data from the XRPScan. 

The firm has been releasing XRP from its escrow holdings every first day of the month. This process is a component of Ripple’s strategy to regulate the amount of XRP in circulation and uphold stability in the dynamic world of digital assets. 

After making up 55% of all XRP supply at first, the escrow accounts now own 40.7% of the supply. This is a result of the progressive unlocking process since it began in December 2017.

As of December 2017, the firm held 55 billion XRP as part of the escrow system initiative, which was mostly implemented on the XRP Ledger (XRPL).

XRP Whales On Dumping Spree

Whale Alert has also detected a substantial dump of XRP on cryptocurrency exchanges (CEXs). Whale Alert reported that over 67 million XRP was observed being moved to Bitso and Bitstamp platforms.

Further data shows that the unknown wallet address r4wf7enWPx…5XgwHh4Rzn transferred 37.9 million XRP to a Bitso-based wallet address. As of the time of transfer, the funds were valued at approximately $19 million.

Later on, 29.7 million XRP was moved to Bitstamp, a Luxemburg-based crypto exchange, in a separate transaction. According to the tracker, the same wallet address carried out the transaction worth about $15 million. This particular wallet address has been carrying out this type of transaction to the CEXs for a while now. It is believed that this might be due to Ripple’s strategic partnership with these centralized exchanges.

The price of XRP is still down by over 2% in the past week, trading at $0.505. Its market capitalization is currently up by 2%, but its trading volume has decreased by over 36% in the past 24 hours.

Ripple

Posted on

Wall Street Expert Predicts Ripple IPO Date

Wall Street financial expert Linda Jones recently offered a detailed forecast regarding the potential Initial Public Offering (IPO) of Ripple. Speaking at a Fireside chat with Linqto, a pre-IPO investment platform, Jones outlined her insights into the expected timeline and factors influencing Ripple’s decision to go public.

Jones stated via X, “Here is my interview with Linqto today. We talked about when Ripple might go public, my back of the envelope calculation for what the stock might be worth and potential acquisition targets.”

Ripple IPO In May 2024?

Despite Ripple’s apparent lack of immediate need for IPO-related funds, Jones suggested that investor pressure might compel the company’s executives towards this path. She elaborated, “Well like I said, Ripple was founded in 2012, and I think their investors want the exit and Brad [Garlinghouse] will get pressure to do that even though they don’t need the money from the IPO.”

Her forecast hinges on a broader economic outlook, predicting a bull market spurred by decreasing inflation and interest rates, thereby creating a conducive environment for public offerings. “I do think we will go into this incredible bull market that will happen from the drop of inflation and interest rates that will lead to a very strong rise in stocks that will allow the IPO market to get very hot next year,” Jones added.

Jones pinpointed mid-May 2024, specifically around May 15, as the ideal window for Ripple’s IPO, contingent on favorable market conditions and company readiness. “I think there is an opportunity if Ripple wants to go public next year that mid-May would be an ideal time, right around May 15 would be an ideal time – that’s my first target that they might go public if everything – the stars, the Sun, and the Moon – lined up, and they wanted to go public,” she explained.

However, she also cautioned about the uncertainty of this timeline, indicating that if Ripple misses this window, the next viable opportunity might not arise until 2025. “If it doesn’t happen, then I think it probably won’t happen until 2025,” Jones remarked.

One Roadblock Remains To Be Removed

Further complicating Ripple’s path to an IPO is the ongoing legal conflict with the US Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse has acknowledged this challenge, noting that SEC approval for Ripple’s Form S-1 Registration Statement is necessary for an IPO. As long as the legal battle persists, this approval remains uncertain.

At press time, the XRP price traded at $0.6165 after dropping below the 0.382 Fibonacci retracement level.

XRP price

Posted on

Ripple Transfers 800 Million XRP Back To Escrow: Catalyst For Price Rally?

Recent financial maneuvers by Ripple Labs have caught the eye of crypto sleuths again. Recent data from crypto data analysis platform Whale Alert has shown a significant movement of 800 million XRP tokens back into Ripple’s established escrow system. This move comes in the aftermath of Ripple’s customary monthly unlocking of one billion XRP, a practice that started in 2017 as part of the company’s strategy to maintain XRP price stability.

Ripple Returns 800 Million XRP To Escrow

The essence of Ripple’s escrow mechanism is to facilitate a consistent and predictable distribution of XRP to the market. This counteracts any potential price volatility that might arise from a sudden influx of tokens. In its commitment to this cause, Ripple, back in 2017, pledged to gradually release 55 billion XRP in 55 monthly tranches of one billion XRP each.

Post-release each month, Ripple typically returns a majority of the tokens, mostly 800 million XRP, back into the escrow, retaining a minor portion, around 200 million XRP, for market circulation. Recent data from Whale Alert confirms that Ripple was no exception this month and has locked 800 million XRP tokens back into the established escrow system.

Notably, the return of the 800 million XRP tokens occurred in two equal transactions, each involving 400 million XRP. Delving into the data from XRP Scan reveals that the first set, amounting to 400 million XRP, was directed back into escrow from an address known as ‘Ripple 10.’ Prior to this, ‘Ripple 10’ had received the said tokens from two different addresses: Ripple 22 and Ripple 23.

The subsequent batch of 400 million XRP was transacted from ‘Ripple 23’ to another address dubbed ‘Ripple 11,’ before it was also directed to the company’s escrow account. The market value of the re-locked 800 million XRP stood at an approximate $480 million during the time of these transactions.

Of the original 1 billion XRP that were made available, the remaining 200 million XRP, with a current valuation of about $121 million, was moved from Ripple 22 to Ripple 1. This balance is anticipated to facilitate Ripple’s operational expenses and other business-related activities.

Ripple’s escrow holdings now total roughly 40.9 billion XRP. For context, their Q3 report disclosed that they had about 41.3 billion XRP in escrow at the end of September.

XRP Price Poised For More Upside

After XRP broke the 200-day Exponential Moving Average (EMA) line (blue) on October 21, the price has been on a tear. Within 11 days, the XRP price increased by almost 20%. That the XRP price took a breather from its rally yesterday is probably not due to Ripple’s monthly transfer from escrow, as the XRP tokens do not hit the market immediately and, moreover, investors know how to gauge the issue.

A better explanation is that XRP encountered a strong resistance with the 0.386 Fibonacci retracement level at $0.625, where the price was rejected in a first attempt. Notably, the bulls could make another attempt if the price stays above the $0.60 level.

If the breakout succeeds, the 0.5 Fibonacci retracement level at $0.683 could be the next short-term price target. However, if the XRP price is rejected again at $0.625, a retest of the 0.236 Fibonacci retracement level at $0.553 could be the next logical move.

XRP price

Posted on

XRP Price Rally Threatened As Ripple Unlocks 1 Billion Tokens

The XRP price rallied as recent reports from leading on-chain crypto tracker Whale Alert have revealed that Ripple Labs, the blockchain-based payment firm, has unlocked another 1 billion XRP as part of its monthly token unlock program.

Origin Of Ripple Customary 1 Billion XRP Routine

Today, the firm has unlocked yet another 1 billion tokens, performed in three separate transactions. Crypto tracker Whale Alert took to X (formerly Twitter) to share the alert with the crypto community, as each whale transaction was made one after the other.

Related Reading: Ripples Returns 80% Of Unlocked XRP For August Back To Escrow

According to data from Whale Alert, the first transaction performed with the escrow account unlatched a significant 100 million XRP tokens, valued at approximately $59.98 million.

The second transaction made by the escrow account was 400 million XRP, valued at around $239.92 million. Meanwhile, the last transaction saw a total of 500 million XRP valued at approximately $299.9 million, making it a whopping 1 billion XRP valued at around $599.8 million.

The price of XRP temporarily dropped in reaction to this announcement, which saw the token falling by about 3% that same day. But this decline was soon overcome, and as of right now, the digital assets are trading at a slight discount of 0.8% to its closing price from the previous day, according to CoinmarketCap.

However, it is noteworthy that XRP had a strong day before the day before the unlocking, rising as high as 10.5% at one point and finishing the day with a 3.74% price increase. Currently, it is roughly trading at $0.6, presenting its highest price since August.

Related Reading: XRP Whale Transactions Spike To 3-Month High As Smart Money Buys

XRP

So far, the company has yet to announce its initial plan for the recently released 1 billion XRP. In light of last’s month 1 billion XRP release, Ripple immediately removed 800 million (80%) of the total XRP tokens unlocked.

Notably, the crypto firm spent approximately 205 million tokens ($112.75 million) from its primary address, “Ripple 1,” in October, even though it reserved about 200 million XRP. Due to this, Ripple used about five million XRP in its balance from earlier this month.

Recent Partnership Set To Boost XRP

The company’s recent partnership with the web3 platform is expected to elevate the XRP holdings on Uphold, thereby boosting the token’s price. This is because Uphold has asserted that it will utilize its expertise to buttress XRP on the market while leaving its current customers’ XRP holdings untouched. 

In addition, the platform will also give Ripple the liquidity it needs to handle cross-border transactions. Ripple’s partnership with Uphold indicates increased interest from the web3 financial platform in the XRPL ecosystem and its utility token XRP, which powers transactions on Ripple Payments. 

Posted on

What’s Behind XRP Price Retreat? Assessing Some Eye-Opening Metrics

XRP, along with the broader cryptocurrency market, witnessed a significant decline in prices today, as bearish pressure gripped the digital asset. This downward trend has raised concerns among XRP enthusiasts and experts, who are closely analyzing the recent price movements. 

Bill Morgan, a lawyer and devoted XRP enthusiast, has drawn attention to a compelling observation that draws parallels between the current price drop and a previous significant event.

Morgan has pointed out that the recent plummet in XRP’s price bears an uncanny resemblance to the downward spiral witnessed after Judge Torres issued her summary judgment ruling back in July. It’s worth noting that XRP’s price had initially surged to as high as $0.549 on Oct. 3, following Judge Torres’ decision to deny the appeal request my by the Securities and Exchange Commission. 

Ripple, the company behind XRP, celebrated this as another victory in their ongoing legal battle with the SEC. However, this surge was short-lived, as profit-taking activities swiftly ensued.

XRP’s Market Snapshot

Over the past six days, XRP has experienced a series of declines, with only one day in the green. Notably, during this turbulent period, XRP slipped below both its 50-day and 200-day moving averages, signaling a bearish sentiment in the market. As of the latest data from CoinGecko, XRP’s price stands at $0.497, reflecting a 3.9% decline in the last 24 hours and a 3.1% dip over the past week.

Crypto expert Benjamin Cowen weighed in on the situation, characterizing the recent drop in altcoin prices as a typical phase in the market cycle. 

“Namely, where BTC drops, but BTC dominance goes up because altcoins are dropping more. It is always the most brutal part of the market cycle,” Cowen noted. This perspective underscores the interconnectedness of the cryptocurrency market and the complex dynamics that influence price movements.

Technical Indicators, Potential Scenarios For XRP’s Future

Furthermore, technical indicators are hinting at the possibility of a bearish momentum building up for XRP. The Relative Strength Index (RSI) has slipped below the neutral line at 50.0, indicating weakening buying pressure.

Additionally, the Moving Average Convergence Divergence (MACD) indicator, which measures momentum changes, is inching closer to a potential bearish divergence. If the MACD line crosses below the signal line, XRP may face further declines.

In this scenario, there’s a real possibility that XRP’s price could drop to the September low of $0.47. Falling below this crucial level could result in the altcoin reaching a three-month low. However, if the broader sentiment in the market turns positive, XRP might manage to hold the $0.505 support level. 

As XRP navigates these turbulent waters, investors and enthusiasts will be closely watching for any signs of a reversal in its fortunes and hoping for a brighter future ahead.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock

Posted on

Is XRP Growth Real Or Just Smoke And Mirrors? Here’s What Liquidation Data Shows

XRP, the digital currency associated with Ripple Labs, has been making headlines with its recent price rally. However, a report suggests that the hype surrounding its performance might be overstated, as market data paints a different picture. 

Despite a positive legal ruling and a robust community, XRP seems to struggle to gain the same level of confidence as Bitcoin (BTC) and Ethereum (ETH) among investors.

Liquidation data from CoinGlass reveals that in the past 24 hours, approximately $4.20 million worth of XRP has been liquidated. Interestingly, the short positions accounted for a mere $66.13K in losses, while long traders recorded a substantial $2.09 million loss. 

Liquidation Data Raises Questions On XRP’s Price Rally

This data underscores the fact that the recent ruling by Judge Analisa Torres, which classified XRP as not a security when traded on exchanges, failed to ignite significant bullish sentiment for the cryptocurrency.

Comparing this liquidation data with that of Bitcoin and Ethereum reveals a stark contrast, further suggesting that XRP is still considered a less promising digital asset. This contrast raises doubts about the bullish predictions made by some experts following the recent legal ruling. It appears that despite its strong community support, XRP’s growth indicators are not aligning with the optimism that has surrounded it.

Currently priced at $0.529 according to CoinGecko, XRP has seen a 5.0% growth in the past 24 hours and a seven-day rally of 7.4%. Despite these gains, market observers remain cautious about the coin’s long-term potential.

XRP Trajectory: Contrasting Perspectives

In a separate report, there is a contrasting perspective that suggests XRP could still experience significant growth in value. This report highlights the fact that during the prolonged legal battle with the US Securities and Exchange Commission that began in December 2020, XRP has shifted its focus to overseas markets.

This strategic move has led to impressive client wins in emerging markets, where Ripple’s payment platform has the potential to make a substantial impact.

These client wins have paved the way for promising developments, particularly in projects related to cross-border payment systems and Central Bank Digital Currencies (CBDCs). These initiatives hold the potential to drive the long-term value of XRP, as they expand its use cases beyond speculative trading.

XRP’s recent price surge may have garnered attention, but skepticism remains prevalent in the market. While some believe in its potential for further growth, the current data and market sentiment suggest that XRP still has hurdles to overcome to solidify its position as a top-tier digital currency.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock

Posted on

Ripple Stirs Debate By Shuffling $260 Million In XRP: What’s Behind The Move?

Ripple Labs has once again become the focus of much scrutiny and debate within the XRP community. Recent data points to a series of high-volume XRP transactions totaling 506 million tokens, valued at approximately $260 million, carried out over the span of 19 days. What makes these transactions especially noteworthy is not just their sheer volume but also the repetitive nature and targeted destinations.

Ripple Transaction Breakdown

Between the end of August and mid-September, a total of 15 significant XRP transactions were initiated by two Ripple-controlled addresses. These transfers were diligently logged by Whale Alert, a reputable platform that tracks large crypto transactions. The initiation of this flurry was a 31 million XRP transaction on August 30.

Of significant note is the consistent pattern observed in many of these transfers. On numerous occasions, amounts exceeding 29 million tokens were transferred to the U.K.-based exchange, Bitstamp. This has ignited curiosity given Ripple’s acquisition of a stake in Bitstamp earlier this year. The specifics of this deal remain undisclosed, but the recurrent transfer of significant XRP sums to the exchange’s wallets post-acquisition does warrant attention.

The address responsible for the majority of these transactions to Bitstamp, although initially unidentified by Whale Alert, is believed to be directly associated with Ripple Labs. This has led to intense speculation within the community. The direct involvement of Bitstamp in these transactions, combined with Ripple’s known stake in the exchange, raises questions about the nature and intent of these transfers.

Another Ripple-associated address was also active, executing two prominent transfers on September 11 and September 18, totaling 175 million XRP in mid-September. Of these, 100 million XRP was moved to a wallet linked with the Canadian SideShift crypto exchange. In a previous instance, similar transactions were observed from the Binance platform to Ripple’s wallets, but no clarifications were provided by either party at the time.

Market Implications

The magnitude of these transactions has understandably caused ripples in the market, leading to speculations about potential systemic selloffs. The recent acquisition of financial services entity Fortress by Ripple has further added fuel to the fire. Questions are being raised about whether Ripple could potentially be leveraging its XRP holdings to facilitate such acquisitions.

Bill Morgan, an advocate in the XRP circle, queried the relationship between the XRP transactions and the acquisition of Fortress, hinting at the potential impact of such a move on XRP’s price. While these significant XRP transfers have undoubtedly stirred the crypto community, it’s essential to highlight that Ripple Labs has, in the past, regularly transferred large XRP sums for various operational reasons.

“I wouldn’t want to think that Ripple sold a lot of XRP to fund this acquisition and bailing out of Fortress customers putting downward price pressure on XRP. But that couldn’t be the cause of the price fall today as the whole crypto market fell,” he tweeted.

Currently, neither Ripple Labs nor Bitstamp has provided any official insight into these recent transactions, leaving room for speculation. As the crypto ecosystem awaits an official response, maybe the next quarterly report by Ripple will deliver answers when the companies presents news stats on its quarterly XRP sales.

At press time, XRP traded at $0.5139.

Ripple XRP price

Posted on

This Latest Move Suggests SEC Lawsuit Against Ripple Is Pushing The Crypto Firm Outside The US

Ripple may be in the process of leaving the United States market for good as the prominent crypto firm has stated that it will be acquiring the majority of its employee candidates from countries outside the US. 

Ripple Will Recruit A Workforce Overseas

US-based cryptocurrency solutions provider, Ripple has enacted plans to conduct its hiring processes outside US borders. The cryptocurrency firm has stated that over 80% of its workforce will be recruited from countries outside the US that encourage crypto adoption and innovation.

The decision to hire the majority of its workforce internationally can be seen as a strategic move to counteract the effects brought about by the regulatory changes enacted by the United States Securities and Exchange Commission (SEC).

In light of the legal dispute between Ripple and the US SEC, the Chief Executive Officer of Ripple, Brad Garlinghouse expressed his enthusiasm about the crypto firm’s expansion in new regions. He stated that the firm will be focusing on hiring candidates in regions like Singapore, Hong Kong, and Dubai which have favorable outlooks and regulatory conditions on cryptocurrency. 

“It’s super frustrating that you see markets like we have here in Singapore, where governments are partnering with the industry, providing clear rules, and you’re seeing growth. That’s why Ripple is hiring there,” Garlinghouse stated in an interview with Bloomberg. 

Presently, the United States does not have a clear regulatory framework for cryptocurrency assets, and the US Congress has also been relatively slow in clarifying the status of cryptocurrencies.

Ripple (XRP) price charr from Tradingview.com (US SEC)

SEC Lawsuit Developments

Ripple has been embroiled in a lawsuit with the US SEC since 2020. The SEC had previously sued Ripple for allegedly raising over $1 billion in unregistered securities offerings by selling XRP. 

In July 2023, Ripple secured a victory after Judge Analisa Torres ruled in favor of Ripple and stated that XRP was not a security. The SEC responded by filing an interlocutory appeal, however, it is unsure if Judge Torres will grant the SEC’s request.

Over the years, Ripple has reportedly spent over $200 million defending itself against the SEC allegations. The cryptocurrency’s native token XRP was delisted from several exchanges in 2021 while its price declined significantly and lost the majority of the gains it had accumulated over the years.

However, since Judge Torres’s ruling, leading exchanges such as Coinbase and Bitstamp have already moved to relist XRP since the court did not deem programmatic exchange sales to qualify as securities offerings.

Posted on

XRP Faces Big Challenge: Scaling The $0.55 Wall – Possible?

XRP, the cryptocurrency tied to Ripple, found itself entangled in a familiar tussle with the $0.55 resistance level as bearish forces thwarted its early attempts at a rebound.

While last month’s pivotal summary judgment offered a glimmer of regulatory clarity for XRP, the ongoing specter of the SEC appeal and an impending trial slated for the first half of 2024 are fostering an air of skepticism among the investor community.

Despite the much-needed legal clarity provided by the recent summary judgment, a cloud of uncertainty still hangs over XRP’s trajectory. The forthcoming SEC appeal and the looming trial timeline have combined to cast doubt on the cryptocurrency’s immediate future. The ripple effect of these uncertainties is palpable as investors remain cautious about diving back into the XRP market.

XRP Bearish Sentiment Prevails

Price analysis indicates that the prevailing bearish sentiment pervading the broader cryptocurrency market is acting as a significant impediment to XRP’s upward breakout.

Santiment’s Network Value to Transaction Volume (NVT) ratio, which gauges the relationship between a blockchain network’s transactional activity and its recent price performance, reveals the extent to which bearish undercurrents are hampering XRP’s ascent.

As of now, XRP’s price hovers around $0.513, marking a decline of 2.8% over the last 24 hours. The past week has seen the cryptocurrency grappling with losses amounting to 1.6%, CoinGecko data shows.

The struggle to break through the $0.55 resistance level seems to mirror the broader market sentiment, reflecting the challenges that lie ahead.

A Glimmer Of Positivity

Coinalyze’s data presents a somewhat brighter aspect. XRP’s funding rates turned green on August 25, signifying an improved stance.

Moreover, the Open Interest (OI) rates, which indicate the total number of outstanding derivative contracts, have risen from approximately $340 million to surpass $360 million.

This increase could signal growing interest among traders and investors, adding a dash of optimism to the otherwise cautious outlook.

In addition, seasoned crypto investor Austin Hilton offers a contrarian view, suggesting that XRP is poised for a significant 20% breakout in the short term. Hilton points to various indicators and fundamental factors underpinning his projection.

Notably, his argument centers around a Tradingview indicator that tracks momentum shifts on the daily timeframe, helping traders determine optimal entry and exit points.

XRP’s journey forward remains intricate, marked by legal battles, market sentiment, and technical indicators. As the cryptocurrency navigates these multifaceted challenges, investors and enthusiasts alike eagerly await the next chapter in XRP’s tumultuous saga.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from LinkedIn