For many crypto investors and those interested in the two concepts of Ripple and XRP will be used interchangeably. The company Ripple Labs, however, to consider both separately. In addition to ideological correctness is also a very pragmatic reason behind it – the SEC is threatening regulation.
“The Ripple rate increases rapidly”, “A Ripple currently costs just under $ 0.50” or “more and more investors rely on the Ripple” – this is the kind of statements one hears again and again in the crypto space. However, the degree of accuracy of such a designation?
If one asks for the person responsible in the case of Ripple itself, then statements like the above are simply inadmissible. So the slogan “XRP is not Ripple is not valid for some time”, which primarily meant “XRP is Ripple.” Instead, Ripple is a company that provides global payment services for financial institutions. The Token plays in the Ripple Ecosystem, of course its important role, but it is only the cogs in the gearbox. XRP is the fuel that keeps the functions of the Ripple network in the first place xRapid-alive.
Ripple wants to make the differences clear
The company, Ripple is currently no stone unturned to make the differences between Ripple and XRP. Recently, the company posted on its Twitter Account this is a graphic. This compared both terms and is split between the company and the Coin. Therein XRP is not referred to once as a key Element in the Ripple Ecosystem, but as an “independent digital Asset” on the Open-Source base.
The digital asset #XRP and the company #Ripple are distinctly different. Learn why. https://t.co/yv8cW1gYH6 pic.twitter.com/w3npq2O894
Ripple (@Ripple) July 9, 2018
On its Website, Ripple takes this distinction even further. So, the XRP Ledger can’t be in possession of a single Person or Institution, but irrespective of this exists. Accordingly, Ripple is the responsibility of the company, in spite of the high proportion of XRP, which the company holds, not to have control over the Cryptocurrency. For the success or failure of the XRP-Token, the community of investors and users of the Tokens is rather responsible. One of the Ripple-makers highlighted point is that an Investment in the company Ripple is not to be equated with an Investment in the crypto-currency, XRP.
In the Wake of the rebranding of the XRP-Token, the Icon of the crypto-currency has been changed. Previously, the three in the middle, connected circles, which represent the company’s Logo had been used for the Token. In the future, the stresses in the middle horizontally separated by X, the autonomy of the token. So the equation of the company and crypto currency will be more difficult from now on, visually.
ExxonMobil or Saudi Arabia? XRP as a digital Oil
The current clarification of a debate, which had turned on both Chief Market Strategist Cory Johnson as well as CEO, Brad garlinghouse. Johnson drew a slightly lopsided comparison to the U.S. Oil company ExxonMobil. This use of Oil in his daily business, was not to be equated as a group with the raw material. What is not noted in Johnson, however: ExxonMobil is no Oil produced, but it merely promotes an already existing substance. The Token would not exist without a Ripple in the Form.
Also garling house takes Oil as a metaphor for XRP, albeit in a slightly different context. He compares the company to Ripple with the state of Saudi Arabia. These have a large part of the world’s Oil reserves, but that is why it is not in control of the entire Ölflüsse in the world. Thus he alludes to the fact that Ripple Labs has provided 55 billion of the 61 billion tokens in a fiduciary account.
Why is the Ripple of heads of the distinction so important?
You tried so, the influence of the company on the crypto-currency to downplay. The Motivation behind this is likely to be to take critics the Wind out of the sails and the watchful eye of the U.S. securities and exchange Commission SEC of to avert. In the last week, we reported of the third lawsuit against Ripple, which aims at the fusion of enterprises and Token. It is criticized, Essentially, that the company will sell in the Form of XRP securities and also the largest part of holding.
The issue of unregistered securities, is not permitted in the state of California. The Token XRP should be actually classified as securities, could result in a Problem for the company Ripple. The now widely-used Version of Ripple is on the other hand, according to the XRP is an Open-Source Asset is and the only Ripple will be used, so the allegations run into the Void.
More information about the Ripple Ecosystem and the various functions of the XRP in relation to it, you will find also in our three-part series.