Ripple Rises Exponentially
Ripple’s XRP has now become the second largest cryptocurrency in terms of market capitalization (CoinMarketCap). In 2017, Ripple has increased in value by over 28000%. As most crypto-enthusiasts already know, the San Francisco based Ripple company started in 2012. The company, for the most part, focuses on leveraging blockchain technology to create efficient payment systems for banks. Transaction processing times are significantly faster with Ripple, especially if you compare them to bitcoin. Ripple can process approximately 1500 transactions per second while bitcoin can only process around 7 (per second). Furthermore, transactions cost a lot less with Ripple.
Although Ripple has some major organizations experimenting with its technology, there have been some rumors going around on reddit that there could be some scams going on. For example, people have reported that they are unable to place sell orders for Ripple’s XRP at the market rate. This might be an example of financial market manipulation. Details regarding these concerns are not yet known. So, we cannot prove anything as of yet.
Ripple Company & Its XRP are Popular with Banks
According to the Ripple company, over 100 financial institutions utilize the Ripple network. Reports have been circulating recently that a number of banks in Japan and South Korea are taking Ripple’s systems for a test drive. How are they doing this? Well, SBI Holdings, a financial services firm based in Japan, partnered with the Ripple company in 2016 to launch SBI Ripple Asia. SBI Ripple Asia is now testing out Ripple’s settlement technology, xCurrent, to process payments between banks in South Korea and 61 Japanese banks. The extent of the involvement of the Ripple company in this initiative is not yet confirmed. However, the details of SBI Ripple Asia’s pilot program are clearly documented on Ripple’s official website.
According to Ripple’s website, South Korea’s Woori Bank and Shinhan Bank, are participating in this pilot program. They’re two of the largest banks in South Korea with a combined market capitalization of over $30 billion. The Ripple company and its XRP cryptocurrency seem to be quite popular in South Korea. One indication of this is that the bulk of XRP global trading volume comes from South Korean exchanges. It is also interesting note here that South Korean regulators have planned to shut down crypto exchanges, if they feel it’s necessary, and ban anonymous cryptocurrency accounts. After these announcements, bitcoin’s price went down. Usually, cryptocurrency news and activity coming from Asia Pacific, especially South Korea, tends to affect the crypto-market the most. Today, it has managed to create a huge surge in the price of Ripple’s XRP.
How is it that typical crypto investors, who have been drawn in by decentralized cryptocurrencies, have started turning to Ripple’s XRP, which is essentially centralized? According to Marius Rupsys, a cryptocurrency trader and investor from Lithuania, the relatively new crypto investors just want to go where the money is. They’re not too concerned with decentralization, immutability, or any other features offered by the technology.
Final Thoughts & Questions
The Ripple company seems to have a solid technological foundation. However, its centralized nature is against the crypto-world’s predominant spirit of decentralization. Will more companies follow in the footsteps of the Ripple company and develop more centralized platforms? Given the amount of success Ripple has achieved, this doesn’t seem too unlikely. Will the Ripple company and its XRP crypto be able to maintain and sustain this level of success?