Get started with XRP today

XRP is a cryptocurrency that Ripple uses as its native token. Like other cryptocurrencies available, XRP has a currency code similar to Ethereum’s Ether (ETH).

The Ripple team introduced the XRP ledger in 2012, which included the native token XRP. The main objective of XRP is to streamline global financial transfers and currency exchanges.

Although XRP is frequently called Ripple, it’s crucial to understand that XRP is an open-source digital asset not related to Ripple, which is a technology company. Given its efficient speed, reliability, and carbon neutrality, XRP delivers fast results and helps customers stay compliant– making it the perfect choice for technology company Ripple’s solutions.

XRP is a cryptocurrency that operates on its own blockchain, which is known as the XRP ledger. Transactions are facilitated by the Ripple transaction protocol. One special thing about XRP compared to other cryptocurrencies is that it doesn’t need to be mined because it’s premined- meaning there’s a maximum supply of 100 billion tokens. The token’s total supply was distributed in two different ways:

 

–   80 billion XRP tokens were initially allocated to Ripple, the parent company. Of those, 55 were locked in an escrow account to ensure a stable supply would be met.

–   The remaining 20 billion XRP was then distributed to Ripple’s co-founders and core team.

 

Ripple is a centralized financial technology company that focuses on global payment solutions through its remittance system, payment settlement, and exchange. It was founded by software developer Ryan Fugger in 2004 as Ripplepay. This was before Bitcoin became the world’s leading cryptocurrency. In 2012, Chris Larsen and Jed McCaleb co-founded Ripple.

The goal of Ripple was similar to that of Bitcoin’s creator Satoshi Nakamoto: they both wanted to make it easier and faster to conduct transactions globally, but without sacrificing security. The downside to using Ripplepay was that, because it was centralized, it didn’t utilize the blockchain technology.

The XRP ledger was developed in 2011 by McCaleb, David Schwartz, and Arthur Britto as an answer to Bitcoin’s many limitations. To help with its function, the native token XRP was incorporated upon the ledger’s launch in 2012. This team of engineers was later joined by Larsen who is now Ripple’s executive chairman and co-founder.

Ripple has undergone several name changes since 2012. First, it was changed from Newcoin to OpenCoin in 2012. Then, in 2013, Ripple Labs took over the name. Finally, in 2015, after rebranding, it is now known as Ripple- a title more familiar to many today.

The original intention behind XRP was to have a secure peer-to-peer network. Ripple claims that XRP is a more efficient digital asset than some other cryptocurrencies because it can process transactions quickly and uses less energy.

XRP is most commonly used as a settlement layer to facilitate transactions with the Ripple network. It can be traded as a cryptocurrency on multiple exchanges, including futures and options exchange, spot exchanges, custodian exchanges, and non-custodian exchanges.

With XRP positioned as an alternative to bitcoin, it has gained massive adoption over the years from various communities, causing its prices to soar.

XRP reached an all-time high of $3.40 in early 2018, a 51,709% jump from its original price at the beginning of 2017. Since then, it has experienced an exponential decline, yet it remains a significant coin with a large market capitalization. It currently sits at seventh position on the cap table.

Unlike most cryptocurrencies, XRP transactions don’t come with a transaction fee. Instead, the sender burns a minuscule amount of XRP, making it what some people call a deflationary asset.

XRP deflationary asset’s primary benefit is that it will eventually run out, which could take up to 70,000 years. To prevent this issue, validators can manipulate the transaction cost and prices through a voting system as long if all requirements are met.

Is Crypto Really Dead?

Is crypto really dead after the FTX collapse and high trading volumes? Read this story to find out what’s really going on.

The FTX contagion had quickly spread to most other crypto exchanges, with investors opting more and more for self-custody solutions. This caused massive outflows of both Bitcoin and stablecoins from exchanges following the fall of FTX.

According to our research, the speed of Bitcoins exiting exchanges is currently so high that all BTC deposited into exchanges since 2018 has now been withdrawn. The ongoing demand for self-custodial and spot-driven Bitcoin markets continues to grow rapidly. Although Bitcoin economics have historically seen several bear markets, this current trend appears to be unprecedented.

Stablecoins such as BUSD and USDC have been rapidly leaving exchanges in preferance of self-custody over the past week, with Bitcoin following close behind. In a report by on-chain data provider Santiment, they wrote:

 

The start of the year was rather positive as we saw constant inflow of major stables (USDC, BUSD, USDT) into the cryptomarket, suggesting that new money is coming to perhaps buy the dip (as prices were falling). Major stables’ marketcap eventually peaked out at $134.07 Bn around the same time as the BTC and ETH topped out this year. Since then, it has been a downward slope, accelerated by FED’s first 75 bps hike announcement in June.

 

Since Binance announced they would convert USDC stablecoins to BUSD, there has been a massive reshuffle in the stablecoin holdings. “If there’s one major lesson the recent events have taught us, it’s self-custody,” notes Santiment. “We saw huge spikes in Supply outside of Exchanges for USDC and BUSD recently, which shows that the market is learning fast.”

The FTX contagion has hit the crypto world hard, with many players feeling the brunt of its effects. Multcoin Capital, a venture fund focused on cryptocurrency, lost around a billion dollars when it held its assets on FTX.

Recently, the crypto market took a sharp turn downward, leading investors to wonder if cryptos are really shutting down for good. However, we’ve seen similar situations in the past with exchanges like Mt. Gox going under suddenly.

The recent market trend of people self-custodying their crypto instead of selling it demonstrates that people still believe in good crypto projects, blockchain technology, and decentralization. However, there have been some significant challenges recently, like institutional players selling BTC after the FTX collapse. It’s too soon to say if crypto is dead at this stage; with a $800 billion market value, it’s still sizeable.