Ripple Labs Inc on Monday clarified that its brand was different from its independent digital asset XRP, as increasing number of media outlets use the two brands interchangeably. Ripple said that it is a software company that facilitates sending money globally, and its product xRapid leveraged the technology behind XRP to make instant cross-border payments.
The firm boasts of several financial institutions added to its blockchain network such as UAE-based lender RAKBANK, Mexican non-financial banking institution Cuallix and Spanish banking group Santander.
Why differentiate between XRP, Ripple?
According to Business Insider, the distinction between the two brands is important given that investors could fall into the trap of seeing XRP as a proxy for Ripple’s performance.
The company pointed out that it does not control the digital asset and that XRP Ledger, the open source blockchain technology behind XRP, is independent of any one person or business.
However, the firm disclosed that it owned 60 billion XRP while about 55 billion XRP are locked up in escrow. Some argue that this suggests a strong degree of centralization, while other skeptics claim XRP exists only to fund the firm and inflate its valuation.
XRP – security or not?
Ripple is currently embroiled in legal battles as allegations have arisen that XRP is a security and that the company sold close to $100 million worth XRP to fund itself. However, CEO Brad Garlinghouse repeatedly asserted that the digital coin is not a security.
Since the U.S. Securities and Exchange Commission’s (SEC) stand on XRP is ambiguous, investors are wary of investing further in this coin.
William Hinman, head of the Division of Corporation Finance at the SEC, said last month that bitcoin and ethereum are not securities since they are both decentralized. However, Hinman did not address the securities status of other cryptocurrencies including XRP.
XRP could near $10 by year-end – experts
XRP is ranked as the third most valuable cryptocurrency in the world, having a market capitalization of $18.26 billion according to ConMarketCap.
According to Smartereum, experts believe the possibility of XRP ending this year at nearly $10 is very much attainable. Based on current expectations, many agree that XRP’s value can go up to the $200-$300 range in ten years.
XRP is currently trading at $0.45915, and has lost close to 3 percent against the U.S. dollar.
On the other hand, Economy Forecast Agency projected that XRP’s value could fall to $0.32 by the end of December, representing a 30 percent decline from its current price of $0.46.
Image via Shutterstock, Reddit
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