Ripple/XRP

As you journey through crypto, you are bound to find some strange and intriguing projects. XRP is one of the unique ones. XRP was launched in June 2012. The founders of the project are Jed McCaleb, Arthur Britto, and Chris Larsen. They were aided in their work by David Schwartz and Stefan Thomas. They pre-minted 100 billion tokens, and no more can be made. 20 billion went to the founders, 7 billion to Ripple, and 40 billion to various companies and individuals. The rest will be released to Ripple at a rate of 1 billion a month for 33 months. Ripple is not XRP. It is a for-profit company that manages the development of XRP. XRP was made so people could send money to others in other countries without the hassle of high fees from banks. Ripple Net takes away the exchange of currency, which removes most of the cost. It creates a bridge from one bank to the other. When you pay your friend who lives in a different country, let’s say $100, Ripple Net takes the money and a fee. It creates an IOU and goes to the bank of your friends, who deposit the equivalent of $100 in their currency.

Tokenomics

Unlike a lot of currencies, you cannot mine or stake XRP to receive more XRP. This is because all the tokens were minted from the start. The tokens are held in escrow, and one billion tokens become available to Ripple every month to disperse as needed. If not all the tokens that become available are used, they are put back in the escrow. The token is meant to be used in payments and not to be held onto. When a transaction is made through the use of XRP, a small amount is burned; this means it is a deflationary currency but not fast-acting.

Released By Escrow Token

Circulating Supply 55,450,358,457

Total Supply 99,989,214,572

Max Supply 100,000,000,000

Pros

Tokenomics

XRP allows anyone to quickly send money to people with very low costs at high speeds. Having a large volume of tokens helps keep the price at a non-intimidating level. Ripple uses trusted sources as validators. Several large banks are connected to the Ripple Network across several countries. Some of these banks are Chase, BNP Paribas, Deutsche Bank, Bank of China, and Barclays PLC. This covers a large group of people, so more than likely you will be able to send money to almost anyone.

Cons

Website

XRP did have a court battle with the SEC and it ended in favor of XRP. Due to this, they struggled with bad price action and lower-than-expected usage. They are not decentralized, which makes them prone to attacks. Using known servers helps with speed, but they have had their network taken down before. The fact that Ripple and a few large early investors own the majority of XRP creates a trust issue since no one knows if one person will dump large amounts of XRP at a time, causing a steep price downturn. There are now rewards for validators, which is not the norm in crypto.

Website

https://xrpl.org/

Ripple/XRP

Tokenomics

Tokenomics

Tokenomics

Pros

Tokenomics

Tokenomics

Cons

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