Since its arrival in the digital currency space, XRP (XRP) has faced a lot of criticisms. The digital currency, which is the native currency of Ripple Inc., is believed to be owned by the firm. Ripple is the parent firm of XRP (XRP) – the third largest digital currency in the world by market cap. Ripple owns more than 60 percent of XRP tokens, which is locked up in escrow. As a result of this, many believe that Ripple owns XRP and that both entities are one.
Ripple has dispute claims of owning XRP. The firm said it only has shares in XRP, that doesn’t mean it owns the entire digital currency. Sometime last year, Ripple publicly declared that XRP and Ripple are independent. The firm added that XRP runs independently of Ripple.
There have been several talks about the nature of the relationship between XRP and Ripple. This has also resulted in a series of articles speculating what XRP (XRP) really is. However, Ripple has continued to dismiss claims of being the owner of XRP.
Ripple’s CTO Clarifies the Community on the Nature of Ripple and XRP’s Relationship
The Chief Technology Officer of Ripple – David Schwartz – was at the just conclude SXSW Conference. In an interview during the event, Schwartz put all speculations about the relationship of XRP and Ripple to rest. He said that Chris Larsen, Jed McCaleb, and a few others came together to create the XRP (XRP) ledger.
He said that the developers gifted a fraction of the 100 billion XRP tokens they created to themselves. They also gifted some of it to Ripple, which is independent of XRP. Schwartz said that holding XRP tokens doesn’t mean that one has a state in the firm – Ripple.
The CTO also added that security laws are not really clear as to the applicable rules of the evolving technology. In a statement, Schwartz said:
“Security law hasn’t changed with regards to blockchain technology. The Security and Exchange Commission recently talked about how they are going to consider if these tokens meet security laws. But they have not given any white or black test yet. They have given a test but it is filled with vague terms.”
XRP (XRP) Is Not a Security – David Schwartz
The CTO further added that he is extremely confident that XRP (XRP) is not a security. He said it would be the courts and the SEC that will decide if XRP (XRP) is a security or not. Schwartz pointed at laws/regulations as the major obstacle to development in the digital currency ecosystem. He further added that Ripple Inc. and other firms in the crypto space were lobbying regulations about the same.
A YouTube user that goes by the name John Bev said:
“Men and women in the military, who are stationed abroad, should use XRP to send money back quickly to support their loved ones. We should pay homage for developing ARAPNET, which is now the INTERNET, and let them use XRP.”
XRP (XRP) Price Today – XRP / USD
At the time of writing, XRP live price is $0.316 after a decrease of about one percent over the past twenty-four hours. The current market cap of the digital currency is $13.09 billion. The trading volume of the coin over the past twenty-four hours is $678.27 million