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What Are The Top 5 XRP Wallets To Use?

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In the realm of digital riches, XRP wallets stand tall as a secure haven and a gateway to empowerment. These wallets not only offer a safe space for storing, sending, and receiving XRP, but they also grant you the keys to the kingdom. With robust security measures like password protection, encryption, and multi-factor authentication, your holdings are shielded from the clutches of cyber villains. No longer do you need to rely on third-party custodians, as these wallets put you in full control of your investments.

XRP wallets come in various types, each catering to different needs and preferences. Software wallets like XAMAN and TRUST wallet can be installed on your computer or mobile device, providing a convenient way to manage your XRP. Hardware wallets such as Ledger Nano X offer enhanced security by storing your tokens offline. On the other hand, online wallets like Uphold and GateHub allow you to access your XRP through a web browser.

However, convenience doesn’t take a backseat with XRP wallets. Integrated address books and QR code support make sending and receiving XRP a breeze, eliminating the need for laborious manual entry. Transactions can be completed with a simple swipe, ensuring seamless and effortless interactions with your XRP holdings. 

In this article, whether you’re an experienced crypto connoisseur or a curious explorer, we will highlight the top 5 XRP wallets that provide a compelling mix of security, control, and convenience, making them an essential tool in your digital asset arsenal.

Essential Factors To Keep In Mind When Picking XRP Wallets

Compatibility

When selecting an XRP wallet, it’s crucial to consider its compatibility with your devices and preferred operating systems. Ensure that the wallet you choose seamlessly integrates with your desktop, mobile, or web-based platforms. By opting for a wallet that aligns with your preferred platforms, you can enjoy a smooth user experience and easily manage your XRP holdings from the devices you use most frequently.

Security

Ensure that the wallet you choose offers robust security measures, such as encryption, password protection, and two-factor authentication. These features help safeguard your holdings from unauthorized access and potential cyber threats.

Private Key Control

It is absolutely imperative to carefully choose wallets that provide you with unwavering and unconditional control over your private keys. Such wallets empower you to retain absolute ownership and sovereignty over your XRP holdings, significantly decreasing your dependency on third-party custodians.

Backup and Recovery

It is essential to verify that the wallet offers reliable backup and storage options for your private keys or recovery phrases. This step is critical to prepare for potential device loss, damage, or unforeseen events. By having a secure and easily accessible backup, you can always recover your funds with peace of mind.

Reputation and Community Support

Conduct thorough research on the wallet’s standing and take into account feedback from the XRP community. Prioritize wallets with a proven track record, favorable reviews, and vibrant development and support communities.

Top 5 XRP Wallets To Use

Ledger Nano For XRP (Hardware Wallet)

The Ledger Nano X is an advanced hardware wallet that offers robust security and offline storage for XRP and other cryptocurrencies. With its user-friendly interface, companion app, and multi-currency support, it provides a convenient and secure solution for managing your XRP funds. The Nano X is designed to be portable and durable, and offers enhanced connectivity options. It is important to obtain the Nano X from authorized sources and prioritize following recommended security practices to safeguard your assets effectively.

Ledger Nano XRP wallet

Setting Up Nano Ledger:

You connect the Nano X to your computer or use Bluetooth with the Ledger Live app on your smartphone or desktop.

During setup, you’ll create a PIN and a 24-word recovery phrase. This phrase is crucial for backing up and recovering your wallet if needed, so write it down and store it securely offline.

You can then initialize the device and install the app for XRP (or other currencies you want to store). See the image of the Ledger Live App below:

Ledger Live App

XAMAN Wallet – Formerly XUMM Wallet 

XAMAN is a mobile app and wallet created exclusively for the XRP Ledger. It provides a user-friendly interface and a wide range of capabilities for token management and XRP Ledger interaction. With XAMAN, you can securely store, send, and receive XRP, as well as sign transactions, and manage your account. 

The app also supports decentralized finance (DeFi) integration and enables the development of personalized XRP-based applications. Security is a top priority for XAMAN, ensuring users have complete control over their private keys. You can download XUMM on iOS and Android devices.

How To Set Up XAMAN XRP Wallets:

To set up the XAMAN wallet, first, download the XAMAN app from the Google Play Store or App Store. Once installed, open the app and select “Create new account” on the welcome screen to begin the setup process. See images from the App Store below:

XAMAN XRP wallet

The app will prompt you to select a secure PIN code to protect your wallet. Make sure the PIN code is unique and not easily guessable. 

Next, backup your account by saving a 24-number recovery phrase. It’s important to write down the numbers in the exact order and store them in a safe place. This recovery phrase will be crucial for restoring your wallet if you lose your device or need to recover your funds. Verify the recovery phrase by entering specific numbers from it to ensure accuracy.

XAMAN wallet

Once your XAMAN wallet setup is complete, deposit funds to activate your account, and you can start using it to send, receive, and manage supported assets like XRP.

GateHub Wallet 

GateHub is a platform that utilizes the capabilities of the XRP Ledger protocol, providing users with a diverse set of features pertaining to the Internet of Value. With GateHub, users can securely send and receive a variety of assets, such as XRP and other supported cryptocurrencies. Additionally, the platform allows for the tokenization and management of different types of assets.

An essential aspect of GateHub is its seamless integration with the XRP Ledger, which is a decentralized blockchain technology explicitly designed for efficient and rapid asset transfers. Through this integration, GateHub empowers users to execute transactions with minimal fees and nearly instantaneous settlement times.

How To Set Up GateHub:

To set up a GateHub account, begin by accessing the GateHub website. Initiate the registration process by selecting the “Sign Up” button.

GateHub XRP Wallet

Provide the required information, including your email address, username, and password. Ensure that your password is robust and secure.

Validate your email address by clicking on the verification link sent to your registered email. This step is crucial to confirm your account. Upon successful email verification, log in to your GateHub account using the credentials provided during the registration process.

After setting up 2FA, you can create a GateHub wallet by accessing the “Wallet” or “Add Wallet” option in your account dashboard. Choose the desired wallet type, like XRP or other supported cryptocurrencies, and follow the provided instructions to create the wallet.

(See illustrations below)

Click on the wallet drop-down menu in the upper-left corner of your screen:

GateHub

Then, click on the “Create Wallet” option.

XRP Wallet

Once your wallet is created, you will be provided with a wallet address. This address can be used to receive XRP into your wallet.

Trust Wallet

Trust Wallet is a well-known mobile wallet that offers support for various cryptocurrencies, including XRP. It provides users with a secure platform to store, transfer, receive, and manage their XRP tokens. 

The Trust Wallet interface is designed to be user-friendly, allowing you to easily monitor your balance, track transaction history, and access other pertinent information. When sending XRP to others, simply input their XRP wallet address and indicate the desired amount for a smooth transaction experience.

How To Set Up Trust Wallet

First, download and install the Trust Wallet app from the official app store (available for both iOS and Android).

To begin, launch the Trust Wallet app and initiate the process of creating a new wallet by choosing the option “Create a new wallet”. Alternatively, if you possess an existing wallet, you can opt to import it.

Trust Wallet

It is of utmost importance to take adequate measures to protect your wallet. Safely backup your wallet’s recovery phrase, as it serves as a crucial means to restore your wallet in the event of loss or device replacement. Take the time to write down the recovery phrase and store it securely in a location that guarantees its preservation.

Once your wallet is created, you will be taken to the main interface. Use the “Search” option to add XRP by enabling it, as seen in the image below:

XRP Trust Wallet

This will make XRP appear in your wallet, displaying its balance. Now, all you have to do is fund your wallet with as minimum as 10 XRP to activate your account, and your tokens will be ready to use.

XRP Wallet

To receive XRP, simply share your XRP wallet address with the sender. They can use this address to send XRP tokens to your Trust Wallet.

Uphold Wallet

The Uphold Wallet is an extensive digital wallet and exchange platform that caters to multiple cryptocurrencies, including XRP. It delivers a smooth and user-friendly experience, ensuring a secure and convenient solution for managing your XRP funds. 

Uphold enables effortless storage, sending, and receiving of XRP, along with seamless currency conversion options. With its swift transactions and intuitive interface, Uphold Wallet stands out as a favored choice among individuals seeking a flexible and trustworthy wallet.

How To Set Up Your Uphold XRP Wallet:

To set up an Uphold Wallet, visit their website and sign up for an account. Verify your email, complete the registration process, and enable two-factor authentication for added security. 

Deposit funds into your account and set up your wallet. Once done, you can start using your Uphold Wallet to store, send, receive, and convert XRP within the platform.

Uphold XRP Wallet

Uphold offers a seamless and user-friendly experience, enabling you to effortlessly engage in buying, selling, sending, and receiving XRP, regardless of the transaction size. 

You can also diversify your portfolio with a variety of cryptocurrencies and fiat currencies and even link your bank account for convenient and smooth transactions.

Conclusion On XRP Wallets

In conclusion, there is a wide range of options available for managing XRP tokens, each with its own unique strengths and considerations. When choosing an XRP wallet, it is crucial to prioritize factors such as security, user experience, and compatibility with different platforms.

However, when choosing an XRP wallet, prioritize security by downloading wallets from official sources and safeguarding private keys and recovery phrases. A user-friendly interface and intuitive features enhance the XRP management experience. Compatibility with different platforms ensures convenient access, and considering additional features like portfolio diversification and staking can be beneficial.

By carefully evaluating these factors and taking individual preferences into account, one can find the ideal XRP wallet that meets their specific needs. This enables a secure and seamless experience in storing, sending, receiving, and managing XRP tokens, ensuring confidence and peace of mind in the cryptocurrency journey.

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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).

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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.

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XRP Ledger (XRPL) Token Market Cap Surged 47% In Q4 To $169M: What Caused The Surge?

A recent report by Messari sheds light on the state of the XRP Ledger (XRPL) and its notable performance during the fourth quarter (Q4) of 2023. 

The report highlights significant milestones, including its native token market capitalization, distribution, burning mechanism, price movement, legal battle, and network activity.

Distribution Of 4 Billion XRP Contributes To Market Cap Growth? 

As of Q4 2023, XRP, the native token of the XRPL, emerged as the sixth-largest cryptocurrency by market capitalization, reaching $33.7 billion. The token’s circulating market cap witnessed a substantial 21.2% increase quarter-over-quarter (QoQ) and an impressive 93.6% growth year-over-year (YoY). 

According to Messari, the increase in market capitalization was primarily due to the distribution of 4 billion XRP and a significant price spike on November 13, when the token reached as high as $0.7503.

XRP

Throughout 2023, 4 billion tokens were distributed, accounting for 8% of the XRP supply from the end of 2022. While this distribution contributed to the increase in market cap, it was overshadowed by the impact of the price spike. 

Additionally, the XRPL employs a transaction fee-burning mechanism, applying deflationary pressure to the total supply of 100 billion XRP. However, the low transaction fees on the network have resulted in a relatively low burn rate of approximately 12 million XRP since the inception of the XRP Ledger.

Network Activity Shows Mixed Trends In Q4 2023

Q4 2023 marked a significant turning point for XRP, concluding a multi-year legal battle with the US Securities and Exchange Commission (SEC). In July 2023, the district court ruled that XRP is not considered an investment contract or a security, distinguishing it from many other blockchain assets. 

This ruling triggered a surge in XRP’s price, with an increase of over 70% on July 14 and a peak of $0.82 on July 20. The subsequent relisting of XRP on major cryptocurrency exchanges further bolstered its position.

XRP

Network activity on the  XRPLedger displayed mixed trends in Q4. While active addresses decreased by 31.3% QoQ, transactions increased by 22.7% QoQ. 

Notably, a significant portion of transaction activity originated from a group of accounts sending transactions to a single account for inscription-related activity. The number of accounts on the XRPL increased by 188,000, reaching 5.00 million in Q4. 

Overall, the Q4 2023 report on the XRP Ledger showcases its growth, driven by various factors such as price spikes, legal victories, and network activity. With its expanding market capitalization and increasing adoption, XRP continues to solidify its position in the cryptocurrency market.

Featured image from Shutterstock, chart from TradingView.com

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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.

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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

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Ripple CTO Explains How AMM Feature Will Enable XRP Holders To Earn Passive Income

The decentralized open-source blockchain, XRP Ledger, is set to introduce more innovative solutions to XRP holders through its new Automated Market Maker (AMM) feature. The XRP community is currently buzzing with excitement as the Chief Technology Officer (CTO) of Ripple, David Schwartz, unveils how the AMM offers a unique avenue for earning passive income.

XRPL AMM To Empower XRP Holders

In a recent X (formerly Twitter) post, Schwartz discussed the ways an XRPL AMM could provide opportunities for XRP holders to make regular income through the AMM’s distinct trading mechanism. 

When asked by an XRP enthusiast about the potential risks of losing XRP investments if they participated in the AMM, Schwartz responded by stating that “it is not supposed to be possible to lose.” He clarified that the occurrence of losses would mean there was a flaw or unexpected bug in the implementation of the AMM. 

The Ripple CTO provided details of how investors can make passive income through the AMM’s liquidity pools. He stated that when a user provides liquidity to an AMM by making a deposit to its pools, they will receive “liquidity tokens” specific to the AMM liquidity pool they deposited to. 

Illustrating the strategy and mechanics behind the XRPL AMM, Schwartz revealed that the AMM works by permitting an increase in the value of a user’s liquidity token. He explained that this unique strategy was employed because it effectively converts volatility into a higher value for a token over a period of time. 

While the prospect of generating passive income through the AMM exists, Schwartz emphasized that an AMM does not prevent or safeguard against a decline in the actual value of your position. 

Expatiating his words with an example, Schwartz pointed out that if a user exchanged 1 XRP for $1 and after applying the AMM strategy the user received 1.05 XRP worth $1.05, then the strategy successfully increased the value of the XRP. However, if the price of XRP in dollars decreases, the overall value of your position may be lower. 

XRP price chart from Tradingview.com (Ripple CTO AMM)

Advantages And Disadvantages Of An AMM

In a recent X post, co-founder of Anodos Finance, Panos Mekras, provided a comprehensive definition of an AMM and its impact on the XRPL ecosystem. Using an analogy, Mekras described an AMM as a self-operating store where the price of items is not fixed by a single entity but determined by the availability of the item. 

Mekras revealed that when there is high demand for an item, active trades increase, and the AMM adjusts the price of items to reflect an inflated value. Conversely, if there is low demand, the AMM lowers the price of items to encourage trade. In essence, the AMM works by balancing the supply and demand system of an item. 

Schwartz also emphasized the mechanics behind the XRPL AMM by listing out several advantages and disadvantages of the feature. According to the Ripple CTO, the benefits of the AMM include turning volatility into yield, increasing yield by providing people willing to pay a spread to trade and minimizing the risk of losing the value of your assets. 

In contrast, the drawbacks of the XRPL AMM include the absence of a guaranteed yield, potential financial losses if the price of the token drops, exposure to counterparty risks, and susceptibility to potential bugs in the AMM’s implementation. 

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RippleX Announces Major Update For XRP Ledger EVM Sidechain, Can This Trigger A Price Recovery

The XRP Ledger ecosystem is currently buzzing with new exciting developments that could potentially propel the price of XRP to new heights. RippleX, an extension of Ripple and an open developer platform has announced new updates for the upcoming XRP Ledger Ethereum Virtual Machine (EVM) sidechain. 

XRPL EVM Sidechain Signals Hope For XRP Price Resurgence

On Tuesday, RippleX released the latest developments and progress on the XRPL EVM Sidechain via an X (formerly Twitter) post. This significant update was shared by Peersyst Technology, a blockchain technology firm and an XRPL EVM developer. 

Peersyst revealed on its official X handle that the XRPL ecosystem is getting closer to launching its highly anticipated sidechain. This advanced EVM sidechain is designed to bridge Web3 applications to XRPL and improve the functionality and scalability capabilities of the ledger. 

Various XRP enthusiasts, including Patrick L. Riley, the Chief Executive Officer (CEO) of Reaper Financial, remain optimistic about the launch and integration of the EVM sidechain into the XRP Ledger. In a December 2023 interview with crypto market analyst Zach Rector, Riley predicted that “XRP will surpass Bitcoin as the number one cryptocurrency.” 

According to Peersyst, the RippleX developer team has officially published the XChainBridge public amendment. This revision is currently open for voting and has already garnered seven validator votes out of 28, marking a crucial step in the launch of the XRPL EVM sidechain. 

The blockchain company also announced a second update on the XRPL EVM, stating that the sidechain has successfully undergone stringent audit procedures by Bishop Fox, a leading provider of security solutions. Another audit has also been conducted with a prominent supplier, with details disclosed soon. 

In addition, the blockchain firm has shared updates on the EVM sidechain’s progress to Cosmos, a blockchain network utilizing the support of Evmos, a scalable high throughput Proof of Stake (PoS) blockchain. Peersyst disclosed that a new version of the bridge is set to launch, allowing users to automatically connect any existing token in the EVM sidechain to the XRP Ledger. 

Other updates on the EVM sidechain include the introduction of a new User Interface (UI) and the implementation of a Software Development Kit (SDK) for developers. Additionally, a better version of the Blockscout explorer is being developed, promising quicker inspections and explorations of transactions within the XRPL EVM blockchain. 

XRP price chart from Tradingview.com (RippleX XRP Ledger EVM Sidechain)

Can This Trigger A Price Recovery?

The XRPL EVM emerges as a potential game changer for the price of XRP, introducing new updates that will enhance transparency, security, and speed within the XRP Ledger. Since this is a positive development, it could lead to renewed interest in the underlying XRP token.

If this interest is sustained and eventually leads to more demand for the token, it could trigger a price rally. At this point, the bulls will be looking to break the resistance, which bears have mounted at $0.55 to signal a resumption of the rally.

While other altcoins have been witnessing price surges, XRP has been struggling to rally. It is currently trading at $0.51, with a 9.63% loss in the last seven days, according to data from Coinmarketcap.

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Ripple CTO Breaks Down XRP Distribution And Who Controlled 99% Of Supply At Genesis

The initial distribution of cryptocurrencies such as XRP has always been a hot topic for investors in the crypto community. A lot of times, the discussions stem from the fact that investors believe there was some foul play at Genesis, where some people received an unfair share of the token supply.

The latest coin to come under scrutiny is the XRP token, with community members asking questions about some events that took place at Genesis. As a result, Ripple CTO David Schwartz has taken it upon himself to clarify these issues.

What Happened To The Genesis Block?

David Schwartz first drew criticism from the Bitcoin community with a tweet earlier this week where he mocked the opinion of a Bitcoin maxi he supposedly had a conversation with. This conversation, where the Bitcoin maxi had seemingly called XRP worthless, and Schwartz mocked the opinion as worthless, would quickly devolve into a debate for XRP’s legitimacy in no time.

Responding to Scwartz’s post, X user @MetaMan_X asked the Ripple CTO if there was any other blockchain that had lost its entire genesis block. Now, for those who do not know, the XRP Ledger starts at #32,569 instead of at #1 as would be expected from a blockchain. This has always been a point of contention as

The Ripple CTO, however, defended the XRP Ledger by saying “The choice of what to consider the genesis block is arbitrary.” He further compared the blockchain to that of the Ethereum blockchain, saying that the second-largest cryptocurrency in the world also had similar hiccups at the start.

He points to a single transaction carrying more than $6 million worth of ETH which apparently has no point of original. Schwartz explains that even Ethereum had transactions that were not on the blockchain, and he would know because this massive transaction was carried out by himself.

XRP price chart from Tradingview.com (Ripple)

How Was The XRP Supply Distributed At Genesis?

Schwartz further went on to defend the XRP Ledger from those who asked him to provide any transactions that were included in the genesis block. According to him, there were actually no transactions included in the Genesis block. Furthermore, out of the 32,570 ledgers that are currently missing from the blockchain, the Ripple CTO revealed that there were only 534 transactions in those blocks. So now, all of those transactions are presumed to be lost with those initial blocks.

Another piece of information that the Ripple CTO provides is how the total XRP supply was initially distributed at the start. Apparently, the founders had received 20% of the total supply at the start, with Jed McCaleb and Chris Larsen getting 9% of the total supply each. Then a third founder, Arthur Britto received 2%, completing the 20% allocation to founders.

The vast majority of the supply would go to the company, OpenCoin (now known as Ripple), with 99.99% sent to the company’s wallets. Then then remaining 0.013% would end up going to Beta testers and developers on the blockchain.

This revelation provides insight to how the XRP distribution was handled and why Ripple holds such a large chunk of the supply. Currently, the company releases one billion coins from escrow every month, with 200 million tokens kept for the cost of operations and 800 million sent back to escrow.

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XRP Burn Hits Major Milestone, Can The Burns Propel Price To $1?

The total number of XRP tokens burned just recently hit a major milestone. This has raised questions as to how much impact these burns can have on the value of the XRP tokens in circulation. Interestingly, Ripple’s CTO David Schwartz recently made some comments in this regard as he weighed in on whether or not XRP burns could affect the token’s value. 

12 Million XRP Now Wiped Out Of Circulation

Data from the XRP Scan shows that just over 12 million XRP tokens have now been burned and wiped out from circulation. This figure represents just 0.012% of XRP’s total available supply, which now stands at over 99.9 billion. Considering the magnitude of tokens still available, it is hard to imagine that the tokens burned so far can have so much impact on the token’s price.

It is also worth mentioning that the 12 million XRP burned so far is a cumulative total of all the tokens that have been wiped out from circulation since they were premined. As such, these tokens have been burned at separate times and not necessarily on a large scale. With this in mind, that could explain why the XRP community is calling for burns of Ripple’s XRP holdings. 

Ripple currently has over 40 billion XRP in escrow. Burning a significant portion of these tokens could have more effect on the token’s price than the 12 million burned so far. However, Ripple’s CTO David Schwartz doesn’t believe that this would yield “any real benefits.” He also alluded to how Stellar burning 55 billion XLM tokens in 2019 didn’t have much impact on the token’s price. 

XRP price chart from Tradingview.com

Ripple’s XRP Holdings Might Not Be The Problem

Talks about Ripple burning or at least disposing of a significant portion of their XRP holdings continue to spring up in the XRP community. This is because of accusations that the crypto firm is responsible for XRP’s stagnant price based on the belief that they continue to dump their tokens on the market.   

These allegations, however, seem unfounded, considering that it has been reported that Ripple’s XRP sales do not have an impact on the token’s price on crypto exchanges. If anything, the crypto firm somehow provides stability to the ecosystem as they are known to perform buybacks at different periods. 

Ripple burning their escrowed tokens is also not an easy task, as Ripple’s CTO seemed to suggest in his latest remarks. It has been said in the past that Ripple will likely need the approval of validators to carry out these burns. 

A former Ripple Director had previously mentioned that Ripple could simply disable the master key on the destination account that receives these escrowed funds. However, there are no assurances that this could achieve the same purpose as the tokens being wiped out from circulation. 

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MasterCard Coming To XRP? Prominent Developer Teases Major Upgrade

XRP investors may be looking at one of the most important upgrades yet according to a prominent developer in the community. This was revealed by the lead developer of one of the major projects building on the XRP Ledger, hinting that a MasterCard integration may be coming.

Bringing MasterCard, Self-Custody, And More To XRP

In a post that was shared on X (formerly Twitter), Xumm Wallet lead developer Wietse Wind excitedly announced to the community that self-custody is on the way. The announcement featured a screenshot that showed the option to make purchases with prepaid XRP, a feature that is yet to drop.

“Right on time for the holidays: the gift of self custody. Xumm @Tangem  NFC hardware wallets: ordered with optional pre-paid XRP to cover the account reserve & an additional 50$ in XRP (no KYC). Full announcement & details: upcoming week,” the developer said.

This sparked a lot of excitement in the community but these also came with questions. One X user asked if users would be able to link a credit card to their Xumm wallet to make purchases. The developer responded by saying “These are hardware wallets, they don’t work @ terminals and ATMs.”

However, in a follow-up, the user declared “Debit cards and Xumm is all I want.” To which Wietse Wind responded that they are working on it. “Debit MasterCard, self custody, card authorization with custom on ledger limits on your account using a Hook,” Wietse Wind revealed.

XRP price chart from Tradingview.com (Mastercard)

Concerns About Card Fees

Following Wietse Wind’s announcement that the team was working on bringing MasterCard integration to the XRP wallet, questions flowed as community members sought out clarifications on what this could mean. One particularly recurring theme was card fees which users have come to loathe.

One user John Mcclain implored the team to not have a +1% fee on charges, referencing the charges by another prominent payment platform in the XRP space, Uphold, which the user says charges a high fee. According to them, “This can really add up quick!”

Moving to allay worries, Wietse Wind reminded users that using credit and debit cards means that there will be fees attached. This is because this is how these cards work, and also “that’s how they are able to insure, give cash backs, and make tremendous amounts of money.”

However, this problem does not seem to be alien to the Xumm team as the developer revealed that running entirely separate rails would be beneficial in addressing the fees issue. But for now, “we’ll have to address the chicken/egg problem over and over again.”

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Evernode Announces Airdrop For XRP Holders, Sets Launch Date

Evernode, a layer-2 network developed on the XRP Ledger (XRPL), has recently provided crucial updates concerning its airdrop for XRP holders. The project, which integrates smart contract capabilities with XRPL, has revised its launch to December 18, 2023, following technical challenges. On the same day, the airdrop is expected to take place.

Evernode Launch Date Announced

The revised launch date of December 18, 2023, is primarily due to delays with the XUMM wallet’s integration in supporting account cloning on the Xahau network. This network is a recent addition as a sidechain to the XRPL.

Situated within this new framework is Evernode, a pioneering project on Xahau. Evernode is the first major project built on Xahau, marking the first major initiative developed using the Hooks feature that Xahau introduces to the broader XRP Ecosystem.

Regarding the launch, Evernode stated, “We’re now targeting launch on 18 December 2023… XUMM has been unexpectedly delayed in supporting the cloning of XRPL Accounts on Xahau. We can’t finalize our airdrop until this happens. We believe this will be ready by 18 December, but it is obviously beyond our control and may still change.”

Besides that, Evernode informed the community about a notable achievement. The project’s three Hooks have been successfully audited, an important milestone in ensuring the network’s security and functionality.

Additionally, the project has established the Xahau address for issuing Evers tokens: rEvernodee8dJLaFsujS6q1EiXvZYmHXr8. For users and airdrop participants, it is crucial to verify this address to avoid scams.

Snapshot Details And Eligibility For XRP Holders

The airdrop’s eligibility was determined by a snapshot taken on September 1, 2023, at Ledger #82237135. This snapshot recorded the XRP balances on the mainnet at 6:00 PM AEST (8:00 AM UTC). Eligibility for the airdrop includes XRP holders who held up to 50,000 XRP in a non-custodial wallet or used Bitrue or Uphold at the snapshot time.

Evers tokens will be airdropped into the Xahau account based on XRP holdings in the corresponding XRPL account on the snapshot date. Moreover, the projects’ update further mentioned the commencement of the “formal process” of airdrop preparation on November 27, along with the promise of a tool to assist users in registering and calculating their Evers token allocation based on XRP holdings at the time of the snapshot.

The Evers token (EVRS) has a maximum supply of 72,253,440. The airdrop will distribute 20,643,840 Evers among various stakeholders, including 5,160,960 to XRP holders, 5,160,960 to founders, 5,160,960 to beta testers, and 5,160,960 to the Evernode project itself.

The remaining 51,609,600 EVRS tokens will be held inside the Evernode Registry Hook. They will be distributed as rewards to hosts in 10 epochs of 5,160,960 Evers over 118 years.

Evernode’s launch is anticipated to be a major addition to the XRPL ecosystem. The introduction of a layer-2 network and sidechain could expand development possibilities, leading to more advanced dApps and potentially increasing user engagement with XRPL.

At press time, the XRP price has posted a bullish breakout from its downtrend channel in the shorter timeframe, trading at $0.6185.

XRP price

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Ripple Introduces AMMs To XRPL, But Is This Good Or Bad For XRP Price

Ripple Labs has announced plans to integrate Automated Market Makers (AMMs) into the XRP ledger. The decision has left the XRP community feeling uneasy, as they ponder the potential long-term effects of AMMs on the XRP price. 

AMMs To Be Integrated Into XRP Ledger

Ripple, a global payments network provider has stated its intentions to incorporate AMMs into the XRP Ledger to help improve liquidity. The introduction of AMMs into the XRP Ledger is expected to further develop the Ripple ecosystem by providing enhanced trading efficiency and liquidity. The initiative also aligns with Ripple’s efforts to continue to optimize and innovate its blockchain infrastructure and network. 

Although the announcement has been met with skepticism by the XRP community and the broader crypto space, Ripple has stated its desire to push forward its plans, looking at the bigger picture and potential success of AMMs in the ecosystem. 

Many crypto community members have expressed their concerns about the impacts of AMMs integrated into XRPL. Some members believe that the XRP price may be affected and cause the token to become stable. Other members have welcomed the announcement with enthusiasm, anticipating the positive effects the initiative would have on the Ripple ecosystem. 

An XRP community member and co-founder of Anodos Finance, Panos addressed concerns regarding the potential effect of AMMs on XRP’s price. He stated that AMMs could increase buying pressure and liquidity on XRP while also improving its efficiency and adoption. 

“XRPL AMM will potentially add buying pressure on XRP as a significant number is expected to be locked on the AMM, which will also increase the liquidity of XRP and will attract even more traders and will make XRP more efficient for more use cases,” Panos stated. 

XRP price chart from Tradingview.com (Ripple AMMs XRPL)

Community Probes Impact Of AMMs On XRP Price

Following the announcement of AMMs being introduced into the XRP Ledger, an X (formerly Twitter) influencer, Digital Perspectives PermaBull sparked a series of heated discussions in the XRP community regarding the effects of an AMM on XRP’s value.

The X influencer asked a series of controversial questions to the crypto community. One of the questions was if the introduction of AMMs and regulations established by the Bank for International Settlements (BIS) would end up transforming XRP into a stablecoin in the future. 

“Are we watching XRP become a Stablecoin with the introduction of AMMs and the Prudential Treatment requirements from the BIS?” the X influencer stated. 

He added, “XLS-30D passes and AMMs become an integral part of the XRPL, will it change the Characteristics of XRP and qualify as a Group 1b Asset for BIS and other Banks?”

In response to the growing concerns, XRPL advocate Panos reassured community members who had begun worrying about the potential impacts of AMMs on XRP. Panos affirmed that the fundamental characteristics of XRP would never change even with the inclusion of an AMM. 

“The characteristics of XRP can NEVER change. It will always remain the native coin of the XRP Ledger, a decentralized digital asset that anyone can trade freely. XRP can never become a stablecoin for that reason, it’s technically not possible and makes no sense whatsoever,” Panos stated.

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XRP Will Not Become A Stablecoin For Banks After AMM Launch: Expert

In the wake of Ripple’s announcement regarding the integration of an Automated Market Maker (AMM) into the XRP Ledger (XRPL), the community has been abuzz with speculation and debate. Central to this discourse is the potential transformation of XRP in light of this update, particularly in regard to its classification and function as a digital asset.

Ripple’s Chief Technology Officer, David Schwartz, previously hailed this update as the most significant for XRPL, raising expectations among stakeholders. Additionally, at the recent Swell conference, Ripple revealed plans to integrate its rebranded Ripple Payments product with the XRPL’s native decentralized exchange (DEX), further stirring discussions among community members.

The community’s response has been a mix of euphoria and confusion. Digital Perspectives, a key community influencer with over 150,000 followers on X, expressed concerns over the potential implications of this update: “Are we watching XRP become a stablecoin with the introduction of AMMs and the Prudential Treatment requirements from the Bank of International Settlement [BIS]? Cat 1 vs Cat 2, where would you classify XRP?”

He further questioned, “When XLS-30D passes and AMMs become an integral part of the XRPL, will it change the characteristics of XRP and qualify as a group 1b asset for BIS and other banks?”

XRP Price Volatility Is Necessary

Panos Mekras, the co-founder of crypto-focused company Anodos, quickly intervened to dispel the rumors and speculation about XRP morphing into a stablecoin to fit into the 1b asset class of the BIS with the advent of the AMM. Mekras, who has previously clashed with Digital Perspectives over misinformation, laid out a detailed refutation of the idea that XRP could become a stablecoin.

He emphasized, “The fundamental nature of XRP as the native coin of the XRP Ledger, a decentralized digital asset traded freely, is unchangeable. It’s technically impossible for XRP to transform into a stablecoin, a concept that completely contradicts its inherent design.”

He further delved into the dynamics of AMMs, noting that they are most effective in environments with high volatility. This volatility benefits liquidity providers (LPs) by attracting more traders and, consequently, increasing trading volume and fees. According to Mekras, the AMM is tailored to take advantage of such market conditions.

Mekras also highlighted the potential impact of the AMM on XRP’s market dynamics. He suggested that the AMM’s implementation might lead to an increase in buying pressure on XRP. A significant portion of the token is expected to be locked in the AMM, which would enhance its liquidity and attract more traders. This, in turn, would make the crypto token more versatile and efficient for various use cases.

In his concluding remarks, Mekras called for a more informed understanding within the community. He stressed the need to focus on the technical aspects of XRPL and the AMM, advising against following individuals who propagate misinformation.

“The community should stop following and paying attention to enablers of misinformation such as Digital Perspectives and learn more about the technicals of the XRPL and the AMM,” Mekras said.

At press time, the XRP price found support at the 0.382 Fibonacci retracement level in the 1-day chart and traded at $0.6333.

XRP price

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New XRP Ledger Upgrade Goes Live, What’s New?

An XRP and crypto enthusiast on X (formerly Twitter) has announced the launch of the newest version of the XRP Ledger, highlighting core updates and new functionalities on the upgraded ledger. 

XRP Ledger New Version

XRP enthusiast, Krippenreiter has released the latest details on the newly upgraded XRP ledger on an X post on November 12. The update introduces four distinct changes incorporated into XRPL’s new version as well as four proposed amendments for the ledger. 

“A new major breaking change is on its way to the XRPL ecosystem in the shape of yet another rippled version update. If all goes as planned, this new version will be available to all node operators by November 13, 2023,” Krippenreiter stated. 

The community member described the new API version, APIV2, which offers more functionalities than traditional APIs. The launch of API V2 on XRPL will include the introduction of a DeliverMax feature, added error messages, and removed API methods. 

Krippenreiter also described the XRP ledger’s Transaction Per Second (TPS) performance and stability. He stated that the new upgrades on this functionality were originally proposed by MarkTravis15 on X, and incorporated three changes that may improve the performance of the ledger. 

These changes focus on enhancing the consensus stability, implementing asynchronous writing of batches to NuDB, and introducing periodic intervals when applying transaction batches. 

Another noteworthy upgrade to the XRP Ledger is the introduction of a new RPC method which allows software apps to effectively connect to a specific network in the XRPL ecosystem by asking information from the node. Other changes in the XRP Ledger include bug fixes and refactoring or rewriting of codes to ensure better readability and efficiency. 

Voting Opens For Ledger Amendments

While providing details on updates in the newest version of the XRP Ledger, Krippenreiter highlighted a series of proposed amendments. These amendments, if approved by the community and subsequently implemented, may have a significant positive impact on the XRPL ecosystem. 

The first amendment, originally titled federated side chains, involves bidirectional connectivity to XRPL assets. This proposal aims to open new routes for interoperability in the XRP ecosystem using witness servers like Xahau, CBDCL, and others.

Krippenreiter also described the second amendment which implements a sovereign identity solution on XRPL called decentralized identifiers (DID). A third amendment seeks to address the unexpected behavior of the XRPL payment engine, providing solutions that appropriately fix the problem.

Finally, the last amendment will help clarify how authorized trust lines should be established and permitted. This proposal specifically focuses on situations where the issuer and user enable certain settings on their accounts.

XRP price chart from Tradingview.com (XRP Ledger Ripple)

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Ripple Achieves Regulatory Approval To Offer XRP Services

Ripple grabs yet another achievement with its recent legal and regulatory approval which will basically grant crypto-related firms within the Dubai International Financial Center (DIFC) the right to offer XRP services.

Latest Approval Sparks Broader XRP Adoption

According to a recent announcement, XRP was recently approved under the digital asset regime of the Dubai independent financial services regulatory body within the DIFC, Dubai Financial Services Authority (DFSA).

This achievement appears to be more significant than it seems. This is due to the position held by the DIFC as the top financial center not only in Dubai or the UAE, but also covering a huge territory, including the whole Middle East, Africa, and South Asia (MEASA) region.

Additionally, for the past 20 years and counting, the DIFC has been the hub for a variety of financial initiatives, which makes it one of the major locations for companies, investors, and financial institutions in the MEASA area.

With this approval, regulated cryptocurrency-focused businesses based in the MEASA region would be able to provide all kinds of cryptocurrency-related services using XRP. These include lending, and trading, among others. 

Trade and investment within the MEASA region have benefited abundantly from the DIFC’s assistance. This is because it is crucial for connecting MEASA companies and investors with the rest of the globe. 

Due to this, the financial hub’s legislative lucidity on XRP creates several opportunities for the crypto asset throughout the 72 MEASA member nations.

XRP

This is a significant achievement because despite XRP already enjoying regulatory clarity in several MEASA nations with pro-crypto laws, it may buttress its notoriety in the area.  Thereby introducing the digital asset to a major number of MEASA firms whose headstations are located there.

Another reason why the approval is impressive is because a lot of major players in the cryptocurrency ecosystem are from the MEASA region. These include crucial nations like the United Arab Emirates, Egypt, Qatar, Israel, Turkey, Saudi Arabia, and India. 

As part of the DIFC’s crypto asset regime, XRP has become the first cryptocurrency that the regulatory body authorized legally and regulatoryly through an external application.

The digital asset is now the latest addition to other digital assets like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) in the region. However, these other assets were not approved through an external application.

India The Leading Player In Cryptocurrency Adoption

India being in the MEASA region sparks a wider adoption of XRP as the country has been the top major player in cryptocurrency adoption since 2023. 

According to an excerpt that was released in September by the New York-based blockchain analytics firm Chainalysis, it was revealed that India was leading the charge in terms of grassroots cryptocurrency adoption.

In addition, several other countries leading the grassroots crypto adoption appeared to be from the MEASA region, such as Vietnam, Pakistan, and Indonesia.

Nonetheless, XRP’s latest approval will buttress extensive regional payment solutions and use cases for several other crypto assets on the XRP Ledger (XRPL).

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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. 

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Top 3 XRP Developments You Should Be Aware Of That Could Boost Price

XRP is currently up over 14% in the last seven days, and some might argue that the altcoin is simply enjoying the euphoria of a possible Spot Bitcoin ETF approval, which has seen the crypto market resurge. However, there are other developments that the XRP community might need to be aware of, as they could cause the crypto token to continue to rally. 

Ripple To See More Liquidity With Latest Collaboration

Blockchain company Ripple recently announced that it had partnered with Web3 financial platform Uphold. As part of the partnership agreement, Uphold is expected to provide Ripple with “enhanced crypto liquidity capabilities” to help facilitate transactions on its cross-border payments infrastructure more efficiently. 

The news is significant for the XRP community because Ripple uses XRP as a utility token to help process these cross-border transactions. As such, “enhanced crypto liquidity” will generally translate to more liquidity in the XRP ecosystem, which could ultimately cause a further surge in the token’s price.  

Xumm Wallet Records Milestone

XRP-based wallet Xumm announced in a post on its X (formerly Twitter) platform that it had crossed 600,000 active users in the past three months. The wallet happens to be one of the notable ones on the XRP Ledger, as it also announced plans to introduce new functionalities that could see the number of its active users increase exponentially. 

In the post, Xumm mentioned that its wallet is set to become 10x more retail-friendly with the redesign they are working on. It also plans to integrate AMM and more DEX activity, which would see the wallet become 10x better. It is believed that the wallet plans to complete this integration once the AMM goes live on the XRP Ledger. 

Meanwhile, the wallet’s use cases will also increase as Xumm plans to incorporate XRP’s sidechain Xahua and its ‘Hooks’ feature. These developments are bullish for XRP as they will undoubtedly increase the token’s utility. 

NFTs Are Coming To XRP Ledger

Ripple had reportedly been working on tools and services to accommodate tokenized assets and facilitate trading of these assets on the XRP Ledger. The company’s efforts seem to be already paying dividends, as SBI Holdings announced plans to issue its NFT service “EXPO2025 Digital Wallet NFT,” also known as ‘Myakoon’ on the XRP Ledger.

It is believed that this development could open the door for other NFT issuers to launch their NFTs on the network. This is also more significant because of how the tokenized market is projected to grow massively to $13.6 billion by 2027. As such, XRP has the potential to be at the heart of the market when this happens. 

 

XRP price chart from Tradingview.com

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XRP News: Ripple CTO Defends Clawback Feature On The XRPL

Ripple’s Chief Technology Officer (CTO), David Schwartz, has always been quick to come to the defense of the crypto firm and its technology. This time, he has defended Ripple developers implementing a newly proposed ‘Clawback’ feature on the XRP Ledger (XRPL). 

Why The Clawback Feature Is Necessary

In a tweet shared on his X (formerly Twitter) platform, Schwartz mentioned that while initially having reservations about the feature as he felt it was “redundant,” he later realized its importance as it differed from the existing freeze feature. 

As the name suggests, the Clawback feature allows a token issuer to “claw back” tokens when there is fraudulent activity or for recovery purposes, like when a user loses access to their account.

Related Reading: Bitcoin Investment Strategy: Analyst Sets Hefty Exit Price

He noted that the clawback feature was primarily to be used to fulfill legal obligations, as in the case of a stablecoin issue fulfilling their redemption obligations or where a court order necessitates the need to use such a feature. 

From this premise, he explained that this feature ensures that this event is represented on the ledger, unlike the freeze feature, which doesn’t highlight why an asset was frozen. As such, this latest feature allows for better accountability and makes audits less complex. 

Furthermore, he mentioned that the freeze feature was more of a “nuclear” option, unlike the clawback feature, which does less damage and can seen as a viable and probably better alternative. 

Schwartz reiterated that this clawback didn’t apply to XRP and suggested that it was an option for stablecoin issuers, noting that other “blockchains that have stablecoins on them have some version of this clawback feature” and how it helped solved an accountability problem. 

Ripple XRP price chart from Tradingview.com (XRPL clawback)

XRP Ledger Feature Receives Cold Reception

Despite Schwartz’s justification of the feature, many still showed displeasure with it as it undermined the ethos of decentralization and users’ privacy. One X user (@bigcjat) explained that a clawback feature seemed more drastic, unlike the freeze feature, as the former stripped users of their tokens, unlike the latter, where the user still maintained control of his tokens.

He went on to quiz whether this token was simply proposed because of the ‘recent partnership’ considering that the feature was never proposed before now. He then suggested that the crypto firm and its blockchain may have been compromised as he stated, “Money taints, even decentralized ledgers.

In response, Schwartz stated that, to the best of his knowledge, the driving force behind this feature was to ensure accountability as it would reflect the legal obligation of an issuer. He is not aware of anyone stating that they will only partner with Ripple if the XRPL supports clawback. 

Other users weighed in on the conversation, with some showing support for the feature, stating that stablecoin issuers needed to implement such a feature. On the other hand, others argued that the clawback feature wasn’t necessary, with a particular user stating that this risk is “akin to being SIM swapped.” 

Another concern raised is that token issuers could use this feature maliciously, especially when experiencing financial difficulties. That particular user gave an example of FTX being able to claw back their FTT tokens or a stablecoin issuer like Tether clawing back their USDT tokens in the event of financial difficulty.

The X user @bigcjat once again came into the conversation and noted that Schwartz’s talks about “legal obligation” only undermine the essence of blockchain technology as there was no need for a ledger if the “actual value” and “rules” were off the ledger.

However, Schwartz noted “several benefits” to putting these transactions on the ledger. One of them is that a public blockchain ensures that “the total legal obligations of the issuer can be completely public in a verifiable way.”

The clawback feature will still need to be voted on by validators on the XRP Ledger before it becomes implemented. Once implemented, stablecoin issuers must decide to enable it before they can create their tokens on the network.