“We are Reshuffling the World Order” Asheesh Birla- VP, Ripple
The influence of regulators is good especially in a sector that is still new and developing. Besides, with regulation, investors’ interests are secured. However, is too much regulation negative? Well, Asheesh of Ripple thinks it is. He even said regulators are unknowingly imposing laws “killing” cryptocurrencies. Anyhow, let’s see what time has now that Ripple and XRP are splitting to please the SEC.
From the News
There is a “necessary’ decoupling going on right now. That of Ripple, the company that was incorporated six years ago and XRP, a product of Ripple Labs and it makes sense for Ripple especially. These two have been synonymous since XRP trading took root a couple of years ago. But as it appears, SEC’s position and selection criteria of what’s qualifies to be a security is driving a wedge between these two. The relation position was even emphasized by The Hatch Company, a PR firm which Ripple hired to drive their point home and complement Brad’s assertion.
Talking of regulators, Asheesh Birla the product VP at Ripple said it’s likely that they will regulate cryptocurrencies to “death”. So, to take measures now that they are a software company offering their client financial solutions, Ripple, the company, is prepping a large regulatory team to take on unfavorable country regulations. This is in line with their vision of on-boarding more than 1,000 new banks/companies to their fold in the next two years. As such, they want to make RXTP integration as smooth as possible and to remove all these bottlenecks that can impede adoption.
Legitimacy Through Global Regulation
Ripple does not want to hear people saying to its coin ‘Ripple,’ and it is working very hard in order to change that in the community. Ripple has been trying to change the notion that is installed in the cryptocurrency market that it is responsible for the XRP currency.
The main intention is to turn its virtual currency into a symbol. And there are some projects and logos around that the community is analyzing as the possible solution for that problem.
The official Github site of the project for the new symbol explains that so as to consider XRP a currency, it will need its own symbol. This is very similar to what other fiat currencies have: $ for dollars, for example. At the moment, the final version of the logo has not been decided, but apparently, it will be different from the current logo of the company and coin.
One of the main reasons for this change is due to the fact that the company wants to ‘desecuritize’ itself. Regulators in the United States may consider some virtual currencies, including Ripple and Ethereum, securities. And the likelihood of XRP being considered one is high.
If this turns out to be in that way (Ripple being considered a security) it would have a strong impact in the price of the virtual currency. With a new logo, it would resemble more as a currency rather than a security – but the effect is not proven yet.
Ripple is one of the most centralized virtual currencies in the market. 81% of the money supply is held by the top 100% accounts, which may be against Ripple’s intention to avoid being deemed as security.
At the same time, the company says and claims that the XRP ledger is an open source and any company would be able to use it for their own purposes. But third-party development in the platform has not been as much as desired and most of the commits made by Ripple have been performed by its staff.
If Ripple wants to solve that problem and disassociate itself from the XRP token, it will have to burn or sell the supply of XRP that the company holds.
Overly, XRP is down 80 percent from their all-time high at the time of this writing. That’s by all accounts a crash and burn and who knows if it will recover or how long it will take. But Ripple, the company does have a future as a company if they can make the split legal.