Ripple Token XRP Classification Raises Worries
Ripple, the third leading cryptocurrency by volume, is under heavy class actions regarding the state of the coin and if it classifies as a security or not. If XRP does prove to be a security through official regulations, this raises concerns that several XRP related individuals would abandon the coin.
In 2018, Ripple spoke to Coinbase and stated a loan of XRP worth around $100M is available as a possible listing on the cryptocurrency trading platform. Despite that, increasing concerns of sanctions due to collaborated operations with XRP which exceeds the limits of its license and regardless of the security state of the coin.
Asheesh Birla, Ripple’s VP stated that the company is actively attempting to ensure at least one thousand new customers within two years despite regulatory problems. Classifying the currency remains a prominent issue as to whether XRP is, in fact, a security or not. As per announcements by the US Securities and Exchange Commission, Bitcoin and Ethereum are not classified as securities given their 100 percent decentralized state.
XRP has yet to be deemed as either due to poof mining traffic and untrustworthy coin acquirements. As Ripple possesses a massive stash of XRP, the coin is heavily paired with the company and this results in rising concerns among participants that regulating the coin would severely affect the company.
Brad Garlinghouse, Chief Executive Officer of Ripple recently stated that he believes XRP does not qualify as a security and that Ripple does not own or control the currency. He adds that XRP would continue normally even without the existence of the company and that the majority owning by Ripple does not provide the company with any controlling hand.