The real-time gross settlement system, Ripple developed by Ripple Labs Inc. is the ledger that employs the XRP Digi-coin. 2012 released, settlement system was developed upon a distributed open-source protocol. This system also supports tokens that represent fiat currency, cryptocurrency, and many such commodities of incredible value. The recent events have been nothing but catastrophic for the XRP cryptocurrency, due to which Ripple is dropping down at an increasing pace.
The online payment system previously called OpenCoin was further developed by Ryan Fugger into now prominent Ripple. Ripple further developed its own digital asset known as XRP to allow the cash inflow from financial institutions with the most negligible amount of fees and Walt-time. Though almost 100 banks began using Ripple’s current messaging platform by 2018, they were reluctant on using XR due to its validity being volatile.
The Reason For Ripple Dropping
The story began in May 2018, when a class action was filed against Ripple “alleging that it led a scheme to raise hundreds of millions of dollars through unregistered sales of its XRP tokens.” These allegations were pertaining to the reports that the company created billions of XRP coins “out of thin air” and put them into circulation in order to dupe the public by gaining undeserved profit through these coins. The U.S. regulator inevitably sued Ripple over these allegations.
These allegations have spread a thought of fear among XRP cryptocurrency’s buyers which has somewhat created a thought of doubt among their unwavering bond. This alleged breach of trust has already begun to show its effects as Ripple is dropping down at an alarming rate.
XRP’s Current Standing
Currently, the Ripple Labs developed cryptocurrency is at a price of $0.5784 with a circulating number of 45,404,028,640 XRP * according to CoinMarketCap. XRP is now in the 6th position in the crypto struggle. However, the lawsuit has yet to make an appearance on the official website of SEC on its litigation releases.
Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH. (1/3) https://t.co/r9bgT9Pcuu
— Brad Garlinghouse (@bgarlinghouse) December 22, 2020
Brad Garlinghouse has definitely been backing his company’s native digital asset and has said that the SEC has permitted XRP to function for the last eight years. He also said that Ripple will be challenging these allegations in the courts “to get clear rules of the road for the entire industry in the U.S.”. Though these predicaments currently being faced by Ripple have certainly created a huge downfall and as a result Ripple is dropping down in the crypto race.
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