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Ripple's CEO, Brad Garlinghouse, recently met Monica Long, Ripple's marketing manager, for a session & # 39; Ask Me Anything & # 39 ;. Brad answered many questions about startup, regulations, the current state of the cryptographic market and so on.
During the course of the discussion, Long asked Brad if the Ripple XRP native token is a security service or not. Garlinghouse responded to the question by reiterating that "XRP is clearly not a security".
The CEO of Ripple went on to say that XRP exists independently of the parent company, which has created products like xRapid and xCurrent that use XRP to facilitate cross-border agreements.
"There's a lot of basic reasons for this one of the most important I think is that … if Ripple closes the company, XRP will exchange more than a hundred exchanges around the world. # 39; XRP will continue to trade. "
It is reported that the US Security and Exchange Commission (SEC) would consider XRP as security. While Garlinghouse claims that the XRP register exists independently of Ripple Labs, the company owns over 60% of the XRP coins ever created. That's why there have been reports that claim that the 2ND the largest cryptocurrency by market capitalization is centralized.
In fact, the regulatory confusion surrounding XRP is one of the reasons why most cryptographic exchanges like Coinbase and Gemini are reluctant to list Ripple (XRP). If the currency was listed on one of these major exchanges, the liquidity and value of the token would probably increase.
In addition, cryptography purists believe that XRP should not be classified as decentralized because it does not meet certain criteria. For example, they do business with banks, which goes against the vision of Satoshi Nakamoto. Satoshi is the anonymous inventor of Bitcoin and the most revered figure in the Crypto community.
While Garlinghouse's latest statement is intended to reassure investors that XRP is not a security, the only thing that can put investors in peace is an official confirmation from the SEC. Therefore, the regulatory status of XRP remains in limbo.
Ripple (XRP) is the second most valuable digital resource after Bitcoin (BTC). At the time of printing, the currency trades hands at $ 0.35 and has a market capitalization of $ 14 billion, according to CoinMarketCap data.
