Categories: Altcoin

Ripple Is Simply a Glorified Version of PayPal?

Ripple has been at the center of crypto developments over the last months especially after announcing xRapid. With Ripple targeting banks to increase adoption of XRP, their goal is to lessen cross-border transactions. In fact, JP Morgan made a 180-degree turn from its past stance on cryptocurrencies. The JP Morgan Coin, though designed to be used internally, is meant to lessen the cost of cross-border transactions.

However, Peter Brandt who is known as a trader and analyst mentioned that “The bag holders need to careful in their manipulation of this security (not a crypto). A decline below .2467 and they might be stuck holding a bag full of rotten goods”. This tweet caused an uproar. Ripple was struggling a few months back. And until today, many are still debating whether or not XRP is a security. In fact, Ripple made the necessary changes to decentralize XRP.

Brandt also added that “Ripple is a glorified version of PayPal”. This caused an uproar and Tiffany Hayden who is an XRP Enthusiast answered via Twitter. She said that “You’re obviously just looking for attention”. She also added on the thread that XRP can have an “incredible potential to disrupt commerce”.

SEC’s Stance

The US Securities and Exchange Commission has cleared both Bitcoin and Ethereum saying that both are not securities. However, XRP wasn’t included. Until today, XRP falls in a grey area with no clarification from the agency.

A few months ago, the agency has been hunting down ICOs. The SEC even made celebrities such as Floyd Mayweather and DJ Khaled to pay a fine due to their involvement with these ICOs. The reason for this is that they promoted unregistered securities. Now, could it be possible that XRP will be considered as a security soon?

Partnership with Institutions

Ripple has partnered with different institutions over the past months. It has partnered with banks alongside companies like Western Union. Ripple has already partnered with 200 organizations providing services such as xRapid. And the latest that has partnered with Ripple is the International Association for Trusted Blockchain Applications (INATBA). Ripple is among the 105 companies that have joined the international organization. According to the INATBA press release, “To support blockchain and DLT in overcoming barriers to scale, the proposal has been made to create a global forum that brings together industry, startups and SMEs, policy makers, regulators, civil society and standard setting bodies”.

The goal of this organization is to have a permanent and constructive dialogue that can help push the interest and the development of blockchain technology.

Regulatory Clarity

One of the things that has caused the bearish market is the fact that the regulators haven’t clearly defined cryptocurrencies. Until today, there are still a lot of questions whether or not XRP is considered a security. Howey test is being used to determine a security. But given the changing technologies, should the definition of a security be changed? Is it time to have it revised?

Many are still waiting for the time when regulators have clearly defined what cryptocurrency is. And also, could it be possible that it could trigger institutional investors to use cryptos?

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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Mark Ayesa

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