Ripple functions as an electronic form of money that creates the infrastructure for banks to transfer funds faster. Ripple works differently than most cryptocurrencies because Ripple holders can use the token at any bank, not just one particular type of network. One of the most intriguing things about Ripple is that it can exist in three separate but related forms. The first form is a network that facilitates digital payments. Secondly, XRP is a cryptocurrency built on top of one specific ledger in the same payment system called the XRP Ledger. Finally, Ripple Labs itself is responsible for the development and maintenance of the Ripple payment protocol and exchange network. According to CoinMarketCap data, Ripple has about $ 60 billion worth of tokens in circulation. XRP is the seventh largest digital currency in the world.
Many people are frustrated with the current state of cross-border payments. The costs of classic bank transfers can be high and the waiting periods are long. With Ripple, anyone can send money without any hassle. This is completely secure because all data is transmitted over a distributed network rather than being processed by a single central point. The Ripple network supports 1,500 transactions per second, and the time per transaction takes an average of 3 to 5 seconds. Unlike bitcoin, which is mined and then exchanged between users anonymously, XRP was designed specifically to solve problems in banking systems in order to scale through strong connections with various banks around the world through their network channels. Ripple partners with American Express and Santander, as well as several other financial institutions.
Last year, the SEC accused Ripple Labs executives of manipulating the XRP price. The Securities and Exchange Commission has sued Ripple CEO Brad Garlinghouse and co-founder and former CEO Chris Larsen, accusing them of raising more than $ 1.3 billion in an unregistered offering. Since then, Ripple has been mired in litigation. However, according to the latest court hearings, the company is doing well, although the office is still open. In case of a positive outcome, the company may announce its intention to go public as early as 2022. Since 2015, Ripple has raised $ 298 million in three rounds of financing. The last investment round took place in December 2019, during which the company managed to raise $ 200 million. The main investors were Tetragon, SBI Holdings and Route 66 Ventures. The company was valued at over $ 10 billion.