Ripple. Is it a security? The question is still unanswered by the SEC.
May 15, 2018 Posted / 3453 Views
Ripple is very often confused with XRP. Ripple is just a transaction protocol applied by various cryptocurrency exchanges and banks for real-time gross settlement (RTGS) and remittance purposes. Unlike the SWIFT system which was developed in the year 1972 which is still being applied by most of the banks till date. On the other hand, XRP is a token that is distributed by the Ripple labs which use the Ripple network for it's functioning.
The Ripple protocol allows for a very quick transaction along with a better transfer tracking when compared to the Bitcoin network protocol. The banks need not adopt XRP coins if they intend to use the Ripple network.
When we see “Ripple” on the Crypto exchanges it is nothing but XRP coin. The name of the network itself is given to the coin because until now there has been only one coin released by them.
In the recent days however efforts are being made in order to change the signatures of the cryptocurrency. This change in the signature is starting off with the symbol of the cryptocurrency token.
Alexavier Guzman unveiled the open source quest to find out a new logo for the Ripple coin, XRP in order to assign it with a Unicode-compliant currency sign.
Guzman explained the need of the unique logo for XRP in an interview with Forbes, that although the Cryptocurrency had an ISO 4217 currency code (XRP), it didn't possess a Unicode Standard symbol.
He furthermore explained, “The XRP Symbol is an open-source project that started after I realized that XRP was using an ISO 4217 currency code and not a symbol or currency sign.” He even made it clear that Ripple should not be discriminated with other cryptocurrencies as other cryptocurrencies have a standard Unicode and hence was of the opinion that they should be given a unique symbol.
The Ripple company has also supported the move and has even requested its social media followers to contribute to the project.
“There is a community movement for a unique #XRP symbol. We agree! XRP is independent of Ripple. Submit your idea now,” said the company's Twitter handle.
Ripple owned almost 80% of the XRP coins at some point in time which was capped at $100 billion. Later, which, the company distributed them by various means like sales, distribution, grants, etc. Currently, the company owns 60 billion much of it is in the escrow account.
According to some reports the securities and exchange commission is in a state of confusion whether to classify cryptocurrencies as securities or not. Also, the news has been leaked that the concerned officials had met on 7th May to discuss the same.
Under the administration of Obama, the Commodity Futures Trading Commission was led by Gary Gensler was of the opinion that he would be classifying Ripple coin as a non-compliant security due to its distribution methods.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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