Is XRP Crypto’s “Messiah” or a “False Prophet”?

January 2023

There are a lot of options to choose from when it comes to cryptocurrency. Is XRP one of the best choices to invest in? Well, XRP is faster and more efficient than other cryptocurrencies. Some major financial institutions also back XRP. Lastly, there is a limited supply of XRP. Seems legit so far; let’s dive deeper!

What is XRP?

XRP is one of the first digital tokens to be created. Ripple Labs first launched it in 2012. The primary purpose of XRP is to facilitate faster transactions between financial institutions. Unlike Bitcoin, which is used as a digital currency, XRP is designed to be used by banks and financial institutions. The focus of this cryptocurrency is on speed and efficiency.

What Makes XRP Stand Out From Other Cryptocurrencies?

Unlike other cryptocurrencies, XRP has a limited supply. Currently, there are more than 50 billion XRP tokens in circulation. However, Ripple Labs will only release a maximum of 100 billion XRP tokens. Another thing that sets XRP apart from other cryptocurrencies is its use in banking institutions. This is because Ripple Labs has already managed to strike deals with several major banks and financial institutions. Some of the banks that use XRP as a means of payment include Santander, RBC, UBS, American Express, and Westpac Banking Corporation.

What Can XRP Be Used for?

XRP is mainly used for making real-time payments. You can use it to pay for goods and services or even send money across borders quickly. This is the main reason why banks are attracted to XRP and why many people want to invest in this cryptocurrency.

Does XRP Pass the Illuminating Cryptocurrency Checklist?

• Does it have a working product or service: Yes, XRP works very well. It has a number of benefits, including the fact that it can make cross-border payments in just a few seconds. In addition, Ripple can process up to 1,500 transactions per second on its network.
• Is there a clearly explained roadmap: No roadmap could be found.
• Does it have an experienced development team: Yes. XRP has an excellent team with years of experience and is very knowledgeable in cryptocurrency.
• How large is the market cap: $19,906,135,648.
• How are the tokenomics: XRP has a circulating supply of 50,803,611,248 XRP coins and a max. supply of 100,000,000,000 XRP coins. XRP is currently selling at $.40, while its all-time high was $3.84. XRP would have to increase by more than 900% to return to the all-time high. XRP is one of the most popular cryptocurrencies, and its current market cap of $20 billion places it in the top 10 cryptocurrencies on coinmarketcap.com.
• Does it have a strong, active community: XRP has more than 2.6 million Twitter followers and is ranked 142 out of 4,002 altcoins on lunarcrush.com (a social engagement tracking website for cryptocurrencies).
• Was an audit performed: No. No audit could be found.
• What does the technical analysis show: XRP is undervalued on the weekly trading chart.

Securities and Exchange Commission Lawsuit Against Ripple

The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs back in May 2018. The lawsuit alleged that Ripple provided false and misleading information to investors regarding the regulatory status of XRP. According to the SEC, Ripple made material misrepresentations and omissions in its sales pitch for XRP.

Is XRP worth investing in?

Due to current conditions in the cryptocurrency market, only invest in XRP if you are a long-term investor with a high-risk tolerance. With that said, XRP is an excellent addition to your cryptocurrency portfolio if you want to diversify your cryptocurrency portfolio. XRP is also more stable than other coins, and XRP has the potential to become one of the most valuable cryptocurrencies. The coin has a high market capitalization, meaning its price is likely to stay relatively high in case of any significant changes in the market.

Does XRP Have a Future?

Historically, XRP has been an excellent long-term investment for many investors who purchased at the right time. Although it is difficult to predict the price of XRP in the future, it can be assumed that the XRP value will continue to increase over time. Buying XRP when prices are meager like they are right now should result in excellent returns for long-term investors.

Is XRP Better Than Bitcoin?

While Bitcoin is the most popular cryptocurrency, XRP will likely provide more significant returns than Bitcoin when market conditions improve. Bitcoin’s much larger market cap means it is more challenging to experience gains similar to those experienced during the 2017 bull run. XRP’s smaller market cap and the high percentage of tokens held by Ripple mean that it will have a much easier time seeing significant gains if the overall cryptocurrency market ever returns to a period of growth.

Is XRP a Good Investment?

XRP has many strengths that make it a good investment. It has a strong use case, a knowledgeable development team, numerous partnerships with major financial institutions, and a strong community that supports and believes in its future. XRP is set up for strong growth in the coming years.

However, investors should understand there are risks to consider before investing in this cryptocurrency. The main risk is the ongoing court case with the SEC. Many possible investors are waiting for the case’s outcome to decide whether to invest. Another issue is the coin’s tokenomics: about 50% of the tokens are yet to be released, negatively affecting the price. We were also unable to find a roadmap and a security audit.

Want to learn more? Discover 9 Methods to Grow Your Cryptocurrency Wealth.

References

https://coinmarketcap.com/currencies/xrp/

https://cer.live/cryptocurrency-security-rating/ripple

https://twitter.com/Ripple