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The controversial nature of the second largest cryptocurrency – XRP, formerly known as Ripple – was one of the hot topics of this year. The company that launched the coin, Ripple, has always denied such accusations, explaining why they can not be true.
At a recent AMA (Ask Me Anything) session that Ripple's CEO, Brad Garlinghouse, had with Ripple's marketing manager, Monica Long, Garlinghouse himself explained why XRP is not a security. AMA also covered a variety of different topics concerning regulations, startup, the cryptographic market itself and more.
The problem of the XRP was also mentioned in terms of safety, and once again Garlinghouse denied it. For him, XRP is clearly not security. He began his explanation by stating that XRP exists independently of Ripple, which is currently focused on creating products like xCurrent and xRapid.
In other words, the company provides only one method to solve some of the modern problems, such as simple instant international payments, using XRP. Garlinghouse says that XRP is independent enough that it can easily survive and continue trading, even if Ripple goes out.
The XRP controversy keeps the currency in limbo
Some time ago, a rumor claiming that the US SEC could classify XRP as security appeared, leading to further confusion. Although Garlinghouse continues to claim that the XRP register does not depend on Ripple Labs, the fact is that Ripple still owns most of the XRP coins. This information is also largely responsible for XRP's accusations as a centralized asset.
Because of this and similar problems, the regulatory confusion regarding XRP has arisen. In fact, so much so that some of the largest and most popular exchanges in the United States, such as Gemini and Coinbase, did not want to list it. As a result, the value of money remains low, as is its liquidity.
In addition to the existing regulatory uncertainty, cryptography purists have highlighted a number of other issues that could affect the status of XRP as a decentralized digital currency. One of these is the fact that XRP is very interested in working with banks and financial institutions. Doing so, in the eyes of the purists, goes directly against what Satoshi Nakamoto had in mind when he created Bitcoin.
Despite Garlinghouse's best efforts to raise the confusion and deny the XRP security allegations, the only one who can really do it right now is the US SEC. Having an official confirmation from the SEC would resolve the issue and question investors' doubts. Until confirmation arrives, however, the status of XRP remains uncertain.
Right now, XRP is the second largest cryptocurrency by market capitalization, which is a position it has maintained for over a month. It has a current value of $ 0.384712 per currency, which is the result of a 3.25% increase in the last 24 hours.
