XRP coins are pre-extracted and their decentralized nature is a matter of open discussion. Brad Garlinghouse, CEO of Ripple Labs, thinks that XRP is not a security coin and says: “I think it’s very clear that XRP isn’t a security. Garlinghouse defended the decentralized nature of XRP, stating that the existence of XRP does not depend on Ripple Labs. Ripple has never claimed that the price of XRP will rise, so there should be no expectations of the profit that XRP buys. Garlinghouse went on to say that if Ripple does not work, XRP will continue to function ( something that the CEO of Ripple has said over and over again ) Garlinghouse finished saying that the XRP is not a security and that XRP is different from Ripple.
Is XRP a security?
Many market players see the Ripple ( XRP ) as a centralized business front towards the cryptocurrency revolution.
Ripple, a private company, only uses XRP in its xrapid product and owns a considerable number of XRP coins.
Yes, users are payment processors, and banks focused on the xrapid Ripple’s product, which actively uses XRP.
The creators of the XRP Ripple Labs have been stifling the charge for a while, tearing it apart like an annoying bug. In 2018, Ripple Labs began to try to co-opt the story around the creation of XRP and the relationship between “Ripple” and “XRP” to dispel the idea that XRP is a security token.
In the past, Ripple, the company behind the XRP coin, has focused on persuading everyone that it is not a security.
While XRP can be purchased in transactions that have nothing to do with Ripple, it is important to note that about 80 percent of the XRP is in the hands of the Ripple company.
What if XRP is deemed as security?
If XRP is proved as security it will have a major impact not only on itself but on the entire crypto community. If XRP is legally recognized as a security in the United States, the company will be included in its ‘shareholders’ and the ownership of XRP will represent ownership of the company.
For investors in XRP, be prepared for a price shock if the SEC gives a ruling on the enforcement authorities against Ripple. Nevertheless, there has been much speculation about whether XRP becomes security; its value will be at the bottom. In Future, if XRP is classified as a security, Ripple should provide the owner of each coin a share of the company.
Ripple does not guarantee investors that the value of XRP will rise after the acquisition of the coin. However, XRP is a cryptocurrency designed for value exchange, and it is likely that other authorities will not classify it as a security.
Currently, purchasing XRP does not give you shares in the company. Ripple does not determine the price of XRP.