What is Ripple?
Ripple provides technology to a network of banks and financial institutions enabling themselves and their customers to have a seamless experience whilst sending money across the world. Over 100 companies have adopted the Ripple platform link as it guarantees faster transactions than bitcoin. Furthermore, Ripple has high value as it has the capability to transact anything including multiple fiat currencies and cryptocurrencies at the same time. Dissimilar to bitcoin, Ripple has all their 100 billion XRP coins already pre-mined and the overriding company Ripple Labs controls the distribution of these. Currently, there is close to 45 million XRP in circulation.
History of Ripple
- In 2005 Ryan Fugger established Ripplepay.com, an online secure payment option for communities although it didn’t gain the traffic nor adoption Fugger was aiming for.
- 6 years later, in 2011, Fugger was approached by McCaleb and Larsen to replace Ripplepay with Onecoin (the first name of 3 between 2011 and 2015), a new network allowing a digital currency system of community consensus verified transactions rather than miners.
- Moreover, in January 2013, to improve liquidity of the platform, Ripple released its own cryptocurrency known as XRP. XRP along with other fiat currencies could be sent from user to user on Ripple’s platform without any risk along with rapid speed.
- Then in September 2013, Onecoin became Ripple Labs. In 2014 Ripple labs provided a ‘balance freeze’ feature, this was in order to comply with regulatory requirements. Despite this, in 2014, the US authorities fined Ripple labs $700,000 for violating the Bank Secrecy Act through not fully authorizing the selling of XRP.
- In 2015, Ripple labs name was changed to Ripple and in 2016 raised $55 million in funding from a Japanese retail stock company, SBI holdings.
- Lastly, with the ‘crypto boom’ in January 2018, Ripple (XRP) reached a price of $3.31 and Chris Larsen, executive chairman of Ripple, owned 17% of Ripple and was worth around $50 billion in his peek, making him one of the richest in the world.
Today, on the 25th August 2020, XRP has a price of $0.285, with a market capitalization of $12.8 billion. In addition, XRP had a 24-hour trading volume of $1.8 billion and a circulating supply of 44.9 billion.
Feeling the pressure
Ripple has positioned itself as a high-speed , low-cost, blockchain-fuelled alternative to traditional payment networks.
The company’s initial focus was on inter-bank payments, but since then it has extended its scope to create RippleNet as a global payment network that, as the company puts it, enables banks, payment providers, digital exchanges of assets and corporations to seize themselves.
Although Ripple has enjoyed the benefit of being first on the market, the blockchain payment business headquartered in San Francisco now has a number of new rivals to compete with. These rivals include some of the world’s largest financial institutions, not to mention some of the stablecoins released by central banks which are expected to emerge in the future.
Image : Miloslav Hamřík
*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.