Home Finance Ripple is Not a “Pure” Cryptocurrency

Ripple is Not a “Pure” Cryptocurrency

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Cryptocurrencies are always judged by a couple of factors and decentralization is one of the most important ones of them. Despite this, some of the biggest cryptocurrencies are actually centralized. We are talking about Ripple and its recent value rollercoaster which saw it grow to $3 and drop down to $1.54. Things get even more interesting since Ripple managed to grow back to $2 and it seems like it might be getting back to its initial value.

Unusual Cryptocurrency

Most crypto experts are saying that Ripple is not your usual altcoin. The reason behind this being that unlike most cryptocurrencies, Ripple has been designed to facilitate transfers between major financial corporations and its already partnered with a bunch of banks.

Considering how Ripple is working with central banks, this makes the altcoin more appealing to new stock investors who are looking for a “safer bet”. Although, this doesn’t mean that Ripple is guaranteed to be successful and this is the case with all cryptocurrencies since the market is highly volatile.

Ripple is Not a Cryptocurrency

Even though Ripple’s value seems to be steadily growing right now, the future is unsafe for it, especially when considering that its surrounded by controversy. The controversy we are talking about comes from the cryptocurrency community which firmly believes that Ripple shouldn’t be categorized as a cryptocurrency.

This is what Charlie Lee who is the founder of Litecoin had to say about Ripple and its legitimacy: “The fact that Ripple is labeled as a “cryptocurrency” and included on sites like CoinMarketCap has been, for the most part, seen as a misleading and inaccurate for many years now”.

On the other hand, Ripple itself seems to know that it shouldn’t be labeled as a cryptocurrency. This is what Ripple thinks about this matter: “Private exchanges and liquidity provides may choose to hold additional XRP for trading. Ripple (the company) does not promote XRP as a speculative investment”.