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Ripple, based in San Francisco, is one of the largest blockchain and cryptocurrency companies in the world.
He is the holder of the majority of XRP, a top 3 cryptocurrency by market capitalization and wants to get a share of $ 2 trillion in cross-border payments.
However, Ripple is faced with numerous lawsuits by XRP buyers and the same XRP has decreased about 90% from its high in January 2018.
Why Ripple Polarize Crypto Enthusiasts?
Ripple sells a small amount of XRP each month to finance itself, which helps to remain a private company without having to rely heavily on venture capital. Ripple has the flexibility to sell up to 1 billion XRP per quarter.
According to the CNBC, Ripple has a value of about $ 20 billion, which is $ 5 billion more than Lyft, a very valuable start-up company that currently has a value of about $ 15 billion.
What is interesting is that Ripple owns over 60% of the existing XRP total, and the same currency has been called Ripple and traded in exchanges with the same name.
This goes against the grain of cryptocurrencies, especially because XRP seems to be more centralized than other cryptocurrencies like Bitcoin and Ethereum. Both of these latter have been classified as non-securities by regulatory authorities; however, XRP is still waiting for this distinction.
The company also supported the burden of numerous lawsuits that were archived after a significant decline in the value of XRP, which led investors to carefully examine Ripple's relationship with the digital currency.
What is Ripple's mission?
Despite the setbacks, price declines and lawsuits, Ripple's CEO, Brad Garlinghouse believes that 2018 was a good year for the company.
This Tuesday, Ripple announced that it now serves over 200 customers and operates in over 40 countries. Furthermore, for the first time, a bank has approved XRP. The group arrived from Euro Exim Bank.
Ripple addresses global cross-border payment systems, currently dominated by SWIFT based in Belgium.
For Ripple, the advantage lies in providing solutions that help make cross-border payments easier, faster and cheaper using the blockchain.
Ripple is not even remotely close to the 10,000 member network that SWIFT holds, but taking even a small percentage of that business would be enough to grow Ripple.
Global banks need the kind of solutions that Ripple provides, but also Garlinghouse thinks that big banks like Citi, which make billions of dollars in payments, can not be sufficiently incentivized to use them.
He noticed:
"I think Citi will be the last customer we will register because he has the highest interest in not changing the status quo."
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