Over the past 18 months, cryptocurrency discussions have touched upon many different topics. One of the currencies making an impact is Ripple’s XRP. Even though it has seen a successful run, many people continue to oppose it while others praise it. Even so, the fascination and respect for the asset shouldn’t be overlooked.
The Success of XRP
Looking back at the price charts, the success of XRP cannot be denied. The asset has seen its value increase sharply throughout 2017. There have been subsequent declines, yet the value is still relatively high, considering. Despite this setback, it seems the global interest in XRP isn’t diminishing in the slightest. It is almost as if a “cult following” is taking shape where this asset is concerned.
There is a very good reason for this particular trend. A lot of holders are convinced any appearance by Ripple executives will push the asset’s value higher. While it is understandable for people to think along those lines, the reality is rather different. While both XRP and Ripple are entwined, they are far from the same thing.
This is only compounded by how so many people refer to XRP as “Ripple”. It has become somewhat frustrating for Ripple’s chief market strategist, Cory Johnson. Ripple is the parent company, whereas XRP is the native asset. Moreover, the parent company’s main product goes by the name of xCurrent. That product doesn’t use the native asset despite being trailed by over 100 institutions. As Cory Johnson notes:
It is endlessly frustrating to me that people are unable to distinguish the fact that XRP and Ripple are separate things.I mean, no one calls Exxon Mobil oil. Exxon Mobil has a vested interest in seeing that oil is successful, but that doesn’t mean it’s the same thing.
It’s Not a Cryptocurrency
Another often heard misconception is how XRP is a cryptocurrency. That is far from the case, even though it can be traded across cryptocurrency platforms. Moreover, it is also linked to other cryptocurrencies on said platforms through various trading pairs. To the untrained eye, this may seem pretty confusing. In reality, it is rather simple as XRP was never designed to be a cryptocurrency.
According to chief market strategist Cory Johnson, XRP can be defined as crypto 2.0. It is a label some people will gladly disagree with. Even so, Bitcoin and Ethereum are not the best representations of the full potential of cryptocurrencies. Ripple’s asset, however, is a bit different. Combined with so many people having money at stake in this asset, a completely different mentality is created. As Johnson notes:
When your money’s at stake, you start to pay a little more attention to things. I also think that’s one of the reasons there is such FUD [fear, uncertainty, and doubt]. People who understand it and have made a bet somewhere, want to see the other things fail. I think there are bitcoin maximalists who hate XRP because it’s not bitcoin. I think there are ether holders who hate XRP because they hold ether.
Regardless of how people feel about Ripple, its technology is being adopted. Various banks and service providers want to improve their cross-border payment offerings. One such service is xRapid – which also uses XRP – which is a remittance tool of great interest to the likes of Western Union, MoneyGram, and others. Bringing this technology to the mainstream, however, will take quite some time.
What do you think about XRP? Are you a fan or detractor? Let us know in the comments below.
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