Since Bitcoin and Ethereum were the only ones particularly mentioned by the US Securities and Exchange Commission, the debate is still alive whether or not XRP is a security or not. The speculation still exists mainly because Coinbase hasn’t included XRP yet. That is despite the fact that it is the third largest cryptocurrency.
XRP, just like Bitcoin, is currently struggling to maintain its value this month. In the last seven days, it has dropped by 4.5%. However, it is worth mentioning that XRP had a 60% boost in April. However, this is still quite low compared to other altcoins that were able to triple their value. In reality, XRP has dropped by 35% since June 4.
What’s In Store for XRP?
Daniel Aranda talked about the future of the company during the CryptoCompare MJAC Blockchain Summit in London. He said that “We think that if the internet today is tethered with packets of information and data being sent around, the internet of value will have a similar kind of architecture, but what will be sent around is money”.
This statement means that Ripple could actually be going to introduce IoV. And also, this could potentially be the backbone of the Internet of Value.
Ripple and XRP have successfully revolutionized cross-border financial transactions. Aranda even mentioned during the summit that “I think what you can expect from Ripple is more focus and traction around cross-border payments. If one of our early competitors SWIFT, then what we offer has to be really good if we’re to beat them. We think our traction is playing out, and network effects are starting to build around that”.
FUD on XRP
Despite the statement provided by Aranda during the Summit, many investors are still hesitating on XRP. For one, there is a lawsuit against Ripple with a claim that XRP is a security. So is it really a security or should it be considered as a commodity just like Bitcoin and Ethereum.
It is a good idea to take a closer look at the important details. One, XRP was made before Ripple which means that XRP wasn’t really used in order to raise capital for the company. This is unlikely of what a security is. In fact, the only connection between Ripple the company and the cryptocurrency is the people not to mention Ripple the company owns a lot of XRP.
Also, XRP holders don’t have any stake in ripple labs. This ultimately means that even if you own XRP, you will not have the right to vote or to have a chunk in the profits generated by the company. This means that the development of Ripple labs will not affect XRP whatsoever.
However, it isn’t the only thing that is hurting XRP. There is also the news that XRP isn’t actually helping Western Union in making the payments cheaper. And this ultimately puts the utility of XRP in question. Currently, XRP ranks high in terms of market capitalization. Will it be able to maintain its position considering the different issues that it is currently dealing today?