Ripple Technology is an interesting coin in the cryptocurrency space as they have decided to take the route less traveled. Instead of disrupt the current way we do business in today’s world, they have created a blockchain token that aims to integrate into our current centralised banking systems to bring blockchain technology into action much sooner than most. This has definitely not gone down well with a lot of the hard crypto-community fanatics as they feel as though it is a bit of a cop-out, however it is still the fourth largest cryptocurrency in terms of market cap, behind Bitcoin, Ethereum and Bitcoin Cash (a hard fork variant of the original Bitcoin technology). The closest coin to catching Ripple Tech right now is Litecoin and they have close to $13 Billion to find lying around the crypto battlefields in order to reach this feat as it currently stands.
One of the more troubling aspects that has been troubling many potential investors into this technology is the fact that there is a total supply of 100 billion XRP tokens, 55 billion of these are held by the company itself. Due to the lack of regulations currently in the market, it was believed my many a sceptic that these coins would eventually be sold by the Ripple team, which in turn would flood the market and drive the price down, making them nearly worthless. Ripple announced earlier on this year that their intentions were not so sinister however and that their plans were to lock these tokens up in escrow at some point.
Instead of deciding to go back on their word and taking the dine and dash approach in the industry, Ripple’s team have followed through, announcing last week that they have finally put their tokens safely into escrow, with 1 billion tokens to potentially be released into the market each month, starting from January 2018 with the intention of allowing potential interested business ventures to snap up these tokens at the market price at the time from the company, instead of flooding the exchanges and washing away any profits current investors would have realised. If the full quota of these coins are not taken, Ripple has said they will merely add the rest of the monthly quota back into escrow to be released at a later point after the original 55 months of releases for future investors not quite ready to take the leap.
Over the course of the last few weeks, XRP has taken massive leaps to gain favour in the crypto-communities, creating higher demand and driving the price north of $0.8, seeing gains of over 400% from the original support of $0.2 we, in the markets had come to expect from this banker friendly token.