Call us unimpressed with the latest round of explanations from the Ripple team concerning XRP and its ties to the Ripple brand. Until Ripple executives divest themselves from owning more than +50% of $XRP we find any new round of clarifications nothing but a parlor game. Currently, Ripple execs own better than 65% of $XRP tokens.
To wit, Ripple has gone on an impromptu rebranding campaign to clarify the difference between Ripple, the company, and the digital asset known as $XRP. This comes during a time of mounting regulatory tensions on the status of $XRP as a security.
Ripple recently released an infographic on their Twitter account that detailed the difference between Ripple and the $XRP token. They emphasized the fact that Ripple is a technology company that provides products for sending money on a global scale.
The $XRP token, on the other hand, is an independent digital asset on an open-source technology. The technology in question is known as the XRP Ledger and is the blockchain on which the $XRP token resides. This translates to the Ledger existing independently and not being owned by any single entity, which includes Ripple. (uhhhhhhh…)
Ripple only utilizes the XRP Ledger in one of their products currently, which is called xRapid. The xRapid product aims to provide on-demand liquidity by using the XRP token as a bridge currency for cross-border transactions. The digital asset or the technology is not controlled by Ripple. Even though the company holds 60 billion XRP, 55 billion is locked up in escrow accounts.
Ripple also emphasized that the XRP Ledger is a community-based platform, with the XRP community deciding whether the technology succeeds or fails. Ripple, on the other hand, is set up in the fashion of a traditional company, with a board, founders and employees of Ripple deciding it’s success.
Being an open-source software, anyone can use the XRP Ledger or token and build on it. On the contrary, Ripple sells products to financial institutions which contribute to their user base. Ripple is owned by the founders, investors, and employees who hold stock in Ripple, while anyone can use the XRP token or hold it.
At least that is the story they are selling, again. Still, $XRP is principally owned by Ripple founders and executives and the firm is facing multiple lawsuits claiming securities fraud based on their distribution and sale of $XRP and how the proceeds have been used within Ripple. Until the two are truly independent entities (which will never happen) any further explanation is more bluster from a brand and team that lacks credibility for those that understand how cryptocurrencies are supposed to work.