With the recent news of Swift’s plans to launch a proof-of-concept (POC) gateway – which will allow for enterprise blockchain firm, R3, to connect with the global payments innovation payments from their platform (GPI) – the involvement and potential use of Ripple’s interledger protocol, and native digital asset XRP, is also being speculated on.
Whilst such positive news concerning Enterprise grade adoption of blockchain and cryptocurrency technology is welcome, especially in today’s bear markets, Ripple’s own relationship with the digital asset XRP is now more relevant than ever.
The Four Horsemen of the Cryptopocalypse
A recent tweet from Peter Brandt (trader of classical charting principles since 1980) seemed to suggest that his financial and legal acquaintances believe that XRP will be declared security, and therefore banned by the SEC.
“Some very smart people I communicate with really believe that $XRP will be declared a security (and banned) by the SEC. Of course the $XRP pumpers strongly disagree,” Said Peter Brandt (@PeterLBrandt) on January 23, 2019
Such unsubstantiated claims regarding the future classification of digital assets rarely have the necessary substance in order to withstand thorough cross-examination. However, Ripple’s own public relation efforts to distance themselves from XRP certainly seems to indicate that there is significant legal counsel occurring behind the scenes. Indeed these very efforts have caused a great deal of controversy within the cryptocurrency social media ecosystem.
Point of Contention
The specific point of disagreement revolves around Ripple Labs relationship with XRP, and whether the cryptocurrency existed before or after the creation of the private company. Attorney and cryptocurrency advocate Preston Bryne takes the view that due to various trademark registrations, and questions over the gifting and guardianship of large amounts of XRP by Ripple Labs, that XRP is a Ripple Labs project.
“The “Official Ledger” was later called the “Ripple Network” or “Ripple.” Today the “Official Ledger” is called “XRP.” It’s the same thing.
Until recently, this view was shared by Ripple Labs, who wrote in 2013 that “Ripple was created by Opencoin, Inc.”
It doesn’t really get much clearer than that. XRP is a Ripple Labs project.
End of discussion.”
In response to such accusations, Cory Johnson and official spokespeople published interviews explaining the key points of separation:
The difference between @Ripple and #XRP is like the difference between @exxon and #oil. They’re completely different things and occasionally related. Thanks @SpencerWrites_ for featuring me in this @Benzinga podcast: https://t.co/8FZ5sXT4iK</p>— Cory Johnson (@CoryTV) October 27, 2018
But why should we care if XRP is indeed owned and controlled by Ripple? Well, with KIN currently engaged in a very public battle with the SEC (the SEC have given notice that they intend to pursue legal charges against the company – KIK- for allegedly violating us securities law) all cryptocurrency fans and followers should care very much.
Although Ripple will be taking every step possible to guarantee that they also aren’t targeted by the SEC, nothing is for certain in this developing, exciting and wildly unpredictable ecosystem. And that adoption of cryptocurrency and DLTs will very much be dictated by the regulators.