By : is arguably the most divisive . Earlier this year, the company surpassed a as financial institutions such as Transpaygo, WorldCom Finance, and Euro Exim Bank signed up for RippleNet. If was like any other , enthusiasts would have celebrated this accomplishment. Except for the Army, the company is not getting any love from the crypto community.
In this article, we explore the reasons why corporations love while almost everybody else hates it.
Why Corporations Love Ripple
It is quite easy to understand why corporations love . By using XRP, corporations such as banks can remove the middleman out of the equation when sending cross-border payments. Without third-party involvement, costs are significantly reduced. For instance, charges around 3% for electronic payments. If you use , the average , which is negligible considering that the price of one XRP is around $0.37.
Average fees charged by | Source:
Another reason why corporations love is its scalability. XRP can handle and has the potential to match Visa’s same throughput of 50,000 TPS. On top of that, recipients can get their money in as little as four seconds.
’s transactions per second compared to and | Source:
To give you context on XRP’s efficiency, TechCrunch founder Michael Arrington sent $50 million and it took the network three seconds to settle payments. More importantly, the transaction .
Why People in the Crypto Community Hate Ripple
Most people hate XRP because they believe it is a banker’s . By working with financial institutions, it deviates from Satoshi Nakamoto’s vision of a peer-to-peer currency that enables people to take control back from the banks.
On top of that, XRP is not a decentralized currency. One company operates and controls the network. Again, this goes against the whole idea of a decentralized .
Reddit user points out one reason why people hate | Source:
These are the obvious reasons why some people shun the . However, those in the know condemn the for two reasons: it is pre-mined and controls . With this combination, they think that XRP is primed for pump-and-dump schemes. If you control supply, you determine the price.
Case in point: in the last bull run, traded around $0.24 on Dec. 11, 2017. The then surged to as high as $3.30 on Jan. 4, 2018. That’s an astronomical gain of 1,275% in less than a month. This created tremendous hype that lured many unwitting retail investors.
Many people accuse of market manipulation | Source: TradingView
Unfortunately, the ensuing bear market was brutal. lost about 90% of its value from the peak. This left many in financial ruin. As a result, multiple lawsuits have been filed against the company. One disgruntled investor even asked for a .
Bottom Line
XRP may be one of the better fundamentally sound , which is why financial institutions have embraced the . However, many detest the digital asset as it departs from Satoshi Nakamoto’s vision. Love it or hate it, there’s money to be made while investing in XRP.
Published at Sat, 18 May 2019 15:41:21 +0000
