XRP is a top-10 cryptocurrency that runs on the XRP Ledger, a blockchain network launched in 2012 by U.S.-incorporated payments company Ripple. It is distinct from most other cryptocurrencies in that XRP was “pre-mined” with Ripple creating its entire supply—amounting to 100 billion XRP—in one swoop instead of distributing it gradually.
Today, there are around 52 billion XRP in circulation. The rest are held in escrow on the XRP Ledger, and are released at periodic intervals to Ripple.
The XRP Ledger is maintained by a small network of trusted node operators, many of which are tied to banks and other established financial institutions.
Ripple hoped the XRP Ledger would replace SWIFT as the system of choice for financial institutions that want to send money across borders cheaply. To do so, banks and payment companies would transfer assets in XRP, the currency that runs on the XRP Ledger. The typical XRP transaction takes 5 seconds, and the fee for a transaction is less than 0.00001 XRP.
The company admitted in 2018 that its ambitious goal wasn’t realistic and shifted its focus to promoting XRP for cross-border payments for all institutions, including governments. While Ripple has gained traction persuading smaller banks and market makers to use XRP for remittances, XRP is still primarily a speculative asset.
The price of XRP in recent years has been heavily influenced by developments in a high profile court case, SEC v. Ripple. The case began in late 2021 when the U.S. securities regulator sued the company for allegedly selling unlicensed securities. A decision in the case is expected in the second half of 2023 and its outcome will have major implications for both XRP and the broader crypto market.
Ripple and XRP have a boisterous presence on social media and, in particular, on Twitter where the “XRP army” is forever boosting XRP and attacking its critics. Some claim the XRP army isn’t real. Network analyst Geoff Golberg linked 70% of the XRP Army’s Arabic-speaking accounts to a social media agency, which also deploys bots for state-backed Saudi disinformation campaigns.
Go deeper:
XRP Ledger Learning Portal
See also:
Crypto investing 101
What Is Ethereum?
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