Ripple and XRP differences explained, better clarity for regulators?

Ripple has recently gone on an impromptu rebranding campaign to clarify the difference between Ripple, the company, and the digital asset known as XRP. This comes during a time of mounting regulatory tensions on the status of XRP as a security.

Ripple recently released an infographic on their Twitter account that detailed the difference between Ripple and the XRP token. They emphasized the fact that Ripple is a technology company that provides products for sending money on a global scale.

The XRP token, on the other hand, is an independent digital asset on an open-source technology. The technology in question is known as the XRP Ledger and is the blockchain on which the XRP token resides. This translates to the Ledger existing independently and not being owned by any single entity, which includes Ripple.

Ripple only utilizes the XRP Ledger in one of their products currently, which is called xRapid. The xRapid product aims to provide on-demand liquidity by using the XRP token as a bridge currency for cross-border transactions. The digital asset or the technology is not controlled by Ripple. Even though the company holds 60 billion XRP, 55 billion is locked up in escrow accounts.

Ripple also emphasized that the XRP Ledger is a community-based platform, with the XRP community deciding whether the technology succeeds or fails. Ripple, on the other hand, is set up in the fashion of a traditional company, with the board, founders and employees of Ripple deciding it’s success.

Being an open-source software, anyone can use the XRP Ledger or token and build on it. On the contrary, Ripple sells products to financial institutions which contribute to their user base. Ripple is owned by the founders, investors and employees who hold stock in Ripple, while anyone can use the XRP token or hold it.

User fregatta on Reddit said:

“It seems everything Ripple has been doing for the past two months is trying to create a cleft between Ripple the company and XRP. Sometimes it even looks desperate. That’s why it’s laughable for people to just dismiss the “security” threat. It’s obvious that Ripple themselves are or have been nervous about a potential security ruling.”

User Neo106343 said:

“Ripple is more worried about the SEC ruling then me or you, and I def don’t blame them. Ripple knows XRP is important to there company and if it is ruled a security that it could give a competitor a chance to get a jump on them. I study and studied ripple inside and out , XRP is a big part of ripple and in the end all these haters will see.”

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