For a long time, the general populace along with crypto investors failed to distinguish between Ripple and XRP. It caused no harm or challenge till date but The Securities and Exchange Commission wants it separated.
How will it affect XRP?
To begin with, there will be a clear understanding of the differences between Ripple and XRP. Ripple is a San Fransisco based startup owning the cryptocurrency XRP. Such a bifurcation will allow both retail and institutional investors to have a clear idea of what the two are and what they stand for.
The clarity in crypto investment is a major key to success.
What is Ripple?
As aforementioned, Ripple is a fun tech startup, specialising in creating products, that will facilitate a seamless transactional experience. Ripple was originally known as OpenCoin before renaming itself as Ripple Labs in 2015.
It is one of the most successful fintech startups, trusted by some of the biggest names in the financial world. It is a growing list. It is also one of the reasons why Ripple has a spread out geographical reach. Ripple has offices in San Francisco, New York, London, Sydney, India, Singapore, and Luxemburg.
How is Ripple valued?
Ripple Labs earn a large chunk of its revenue from being the creator and major holder of its cryptocurrency XRP. Ripple owns about 60 billion of the 100 billion XRP tokens, in circulation.
Other than XRP, Ripple Labs also owns xCurrent and xRapid.
xCurrent is a network used by banks and financial institutions as a messaging service. This helps them settle cross border payments in real-time.
xRapid is the solution which helps entities transform fiat currencies into XRP, quickly and cheaply.
What is XRP?
XRP is the cryptocurrency developed and owned by Ripple Labs.
It is an independent cryptocurrency created to facilitate transactions on the Ripple Network. XRP has primarily developed to power the Ripple Network and assist people in sending money digitally.
XRP enmeshed the idea of a cryptocurrency with tech to create a superior product. What it did was combine the craziness of Bitcoin and perfect the delivery system. XRP can process transactions in as little as 4 seconds and can handle 1500 transactions a minute.
100 billion XRP tokens are currently powering the Ripple network, creating one of the largest circulations in the history of cryptocurrencies.