Ripple Coins: A Smart Investment Move?

Ripple (XRP) is a cryptocurrency and a digital payment network for financial transactions. It was co-founded by computer programmers Chris Larsen and Jed McCaleb and released in 2012 through their US-based company, Ripple Labs Inc.

Ripple is a low-risk investment with lots of potential rewards. It is affordable, solves problems and creates opportunities, has a large market cap, and is not just another cryptocurrency. It also has the backing of major financial institutions and is moving into Central Bank Digital Currencies (CBDCs).

However, there are some red flags. Ripple owns a massive share of XRP, and it is not decentralised. It is also facing a lawsuit from the Securities and Exchange Commission (SEC) over allegations that it sold XRP as unregistered securities.

So, is it a good investment? Well, that depends on your risk appetite.

Ripple's SEC lawsuit

On December 22, 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. and two of its executives, Christian Larsen and Bradley Garlinghouse, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. The lawsuit claimed that since 2013, Ripple had raised funds through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide. The SEC also alleged that Larsen and Garlinghouse conducted personal unregistered sales of XRP totalling approximately $600 million.

The SEC's complaint charged the defendants with violating the registration provisions of the Securities Act of 1933 and sought injunctive relief, disgorgement with prejudgment interest, and civil penalties. The lawsuit sent shockwaves through the cryptocurrency industry, as XRP is one of the leading cryptocurrencies.

Court hearings for the case began in 2020 and ended in July 2023. The court sided with XRP and did not recognise the token as a security as the SEC had sought. This decision was celebrated by the crypto industry as a victory, providing clarity on how regulators treat digital assets. However, the litigation continues, with new trials arising from allegations that Ripple's XRP sales to organisations constitute unregistered securities contracts.

The SEC has requested that Ripple provide financial statements and information on the institutional sale of XRP tokens to aid the judge in determining whether the court should order injunctions or civil penalties. Ripple opposed the request, calling it untimely and arguing that the SEC had not justified its requests. Despite this, a judge granted the SEC's request in full. The results of the ongoing hearings will be known by the end of spring 2024.

XRP's affordability

The low price of XRP means that it has the potential to attract more retail investors, especially those who are new to the crypto market and may be wary of investing large sums. Additionally, the low transaction fees of XRP, which are a fraction of a penny, make it an attractive option for those looking to move their investments frequently or make smaller transactions.

The affordability of XRP is also a key factor in its utility. XRP transactions are designed to be fast and cost-efficient, making them ideal for cross-border payments and remittances. The low cost of XRP means that it can facilitate transactions of all sizes, from micropayments to large institutional transfers.

While the current price of XRP is relatively low, it is important to note that the cryptocurrency market is highly volatile, and prices can fluctuate significantly. Additionally, the value of XRP has been impacted by legal troubles with the Securities and Exchange Commission (SEC), which have created uncertainty around the coin's future.

Despite these challenges, XRP has a dedicated community of supporters who believe in its potential. The affordability of XRP is a key factor in its accessibility and utility, and it will be interesting to see how the coin performs in the future as the cryptocurrency market continues to evolve.

Ripple's potential market

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Ripple (XRP) is designed to facilitate fast, low-cost cross-border transactions, especially for banks and financial institutions. This makes it extremely attractive to banks, which are Ripple's primary target customers, as it enables them to move large sums of money quickly and securely. As a result, Ripple has the potential to replace SWIFT, the current standard for international bank wires, which is often slow and expensive.

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Ripple's ability to provide speedy and low-cost transactions has led to its adoption by major financial institutions worldwide. For example, Bank of America and American Express are already using XRP to facilitate transactions. Additionally, Ripple has partnered with SBI Remit, Japan's largest money transfer service provider, to facilitate cross-border payments using its digital currency. This widespread adoption by financial institutions bolsters Ripple's potential market and underscores its competitive advantage in the industry.

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The unique features of Ripple and its native token, XRP, make it a strong competitor in the cryptocurrency space. While Bitcoin is the highest-performing cryptocurrency in terms of market capitalisation and average price, and Ethereum offers a broader range of functionalities, Ripple carves out a unique niche for itself by focusing on cross-border transactions and providing a bridge between fiat currencies and cryptocurrencies. This specialisation positions Ripple favourably in the eyes of investors who recognise its potential to revolutionise multiple industries.

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The Ripple network's ability to conduct transactions swiftly and securely has attracted the attention of analysts and investors worldwide. Digital Coin Price, for instance, predicts that the price of Ripple will continue to climb steadily, reaching $3.54 by 2030. Even more bullish forecasts come from Cryptonewsz.com, which expects the average price of Ripple to climb to as high as $9.81 by 2030. These predictions highlight the strong potential market for Ripple and its native token, XRP.

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The long-term prospects for Ripple are further bolstered by its dedicated team and the wider community of investors and analysts who recognise its potential. Despite facing legal challenges and opposition from some financial institutions and US regulators, Ripple has a supportive community that believes in its long-term viability. This includes investors who have experienced substantial returns since its inception in 2012, with a $10,000 principal turning into $1,265,841 within nine years.

Ripple's resilience

Ripple is a resilient cryptocurrency with a strong use case and a growing network of supporters. It has been designed as a full-fledged payment infrastructure that can potentially replace SWIFT, the largest international payment network.

• Strong use case: Ripple offers a fast, secure, and low-cost solution for cross-border transactions, making it attractive to financial institutions and individuals alike.
• Partnerships and investors: Ripple has forged partnerships with major banks and financial institutions, including American Express, Santander, and MoneyGram. It also has the backing of some of the largest financial institutions in the world, which is a significant advantage over its competitors.
• Technological advancements: Ripple's advanced blockchain technology, RippleNet, is already being used by a growing network of over 300 providers spanning 40 countries across six continents. Its cross-border payment solutions, such as xRapid, have gained traction and are being adopted by banks globally.
• Resilience to legal issues: Despite the ongoing SEC lawsuit, which has been a significant hurdle for Ripple, the company has continued to score wins and gain support. There is growing optimism that Ripple can win the case, which would boost the price of XRP and lead to further adoption of its technology.
• Accessibility: XRP is easily accessible on most major cryptocurrency exchanges, providing strong liquidity and making it a good investment option for new and established investors.
• Decentralization: XRP is a 100% decentralized cryptocurrency, giving users control over their transactions and protecting them from centralized authorities.
• Market potential: With the huge size of the global cross-border payments market, XRP has the potential to gain a significant share of this market, leading to a substantial increase in its value.

Overall, Ripple's resilience stems from its strong use case, growing network of supporters, and ability to overcome legal and competitive challenges. It has maintained its position as one of the leading cryptocurrencies and continues to offer a compelling investment opportunity.

XRP's accessibility

XR accessibility refers to the spectrum of hardware, applications, and techniques used for virtual reality or immersive environments, augmented or mixed reality, and other related technologies. It is a vital consideration in the development of immersive technology, and inclusive design is key to ensuring that all people, including those with permanent, temporary, or situational disabilities, can benefit from XR.

The XR Association (XRA) promotes the industry and leads the development of solutions to key issues. Its Accessibility Working Group (AWG) meets monthly with key accessibility personnel to promote accessibility in XR, develop accessible devices and technology, and ensure that XR technology can be used by and enhance the lives of all people.

The AWG's definition of accessibility in XR is:

> "Making XR environments, devices, and experiences usable and delightful for everyone, including those with disabilities, however they encounter it."

To achieve this, the AWG works with member company representatives focused on the responsible development and adoption of XR technologies by disabled communities.

The XR Access Initiative is a community committed to making XR accessible to people with disabilities. It has partnered with the XRA to create a central repository of accessibility solutions for developers working in XR. This is a free asset for software developers, providing resources and code snippets that support the use of XR technology by people with disabilities.

The W3C Accessible Platform Architectures Working Group has also published a document outlining various accessibility-related user needs for XR and suggesting subsequent requirements. The document covers a range of disabilities, including auditory, cognitive, neurological, and physical, and aims to help designers and authors understand how to meet the needs of users with disabilities.

Frequently asked questions