Ripple, a cryptocurrency based in San Francisco, USA, started to release its coins back in 2013. Currently, XRP is one of the most prevalent cryptos in the market in terms of market capitalization, coming third after Bitcoin and Ether. However, a report from The New York Times, indicate that the cryptocurrency is facing a huge challenge, since users only trade it, but they do not use it.
XRP Is All Over
People use XRP due to the fact that they trade with it but will not purchase or sell the coin as speculative investments. According to the platform, it is not possible to use the crypto at your nearby grocery store. This is because the coin is basically focused on ensuring that people use it to carry out global money transfers.
For instance, in case you have some dollars which you desire to send to someone in France, you would have to convert your money into XRP before sending it to the recipient in France.
The recipient would then convert the XRP into Euros, or their preferred fiat currency. In order to realize this, the company has collaborated with some banks as well as other fiscal institutions to facilitate the transfers.
How do you get people to use any currency? By making sure that they can access it in large numbers. This is exactly what Ripple is doing by ensuring that people have it in abundance. This is because the company gives it away. In March 2018, the company contributed $29 million worth of XRP to a charity organization to purchase schoolroom materials for academic institutions in the United States.
Additionally, in the course of an event on Ellen in May this year, Ashton Kutcher, a Ripple investor, donated $4 million worth of the crypto to a wildlife fund organization. Apart from just making donations to charities, Ripple is also remunerating people who utilize it.
Through the company’s RippleNet accelerator program, the company put $300 million worth of XRP to recompense fiscal institutions who use it. Additionally, in May this year, the company came up with Xpring, a conception which sponsors expansion of startups which are focused on XRP.
Flush With XRP
Ripple has the capacity to play a major role in the way individuals use XRP, as well as the much that is available. This is based on how the coin was produced. In many ways, while the quantity of transactions regulate the amount of Bitcoins all over the world, the entire number of XRP all over the world were produced in 2013.
In 2013, Ripple produced 100 billion XRP, in which the company kept 80% of it all. Due to this, it is assumed that the company has not only exaggeratedly predisposed the XRP market, it also has too much XRP to give away.
With the current state of affairs, it is not possible to determine whether the several initiatives of the company will assist XRP to shift from a speculative investment to a used asset. Donating millions to charity should assist the company to improve its public image, in light of the litigations it is facing.