As news has been making round that things are looking up for Ripple, considering the institutional support from the World Bank and International Monetary Fund (IMF). Everybody expects that XRP holders would be in for a big harvest. But according to tweet reports from XRP holders community, this will not happen because they believe Ripple and XRP are different.
So many people believe that Ripple owns XRP but according to the statement made by Ripple’s former Chief marketing officer Cory Johnson in an interview with TheStreet, XRP is a digital asset that trades on its own. Ripple is a software company that owns a lot of XRP, this means that Ripple and XRP are two separate entities.
“XRP is a digital asset that trades on its own that’s owned by lots of people in lots of places. We happen to own a lot of XRP – we own a lot of cash, chairs, and computers – but the company is called Ripple and we sell software.”
Another report from Business Insider states that Ripple and XRP were founded by the same people and Ripple owns more than half of the currency, about 60 billion XRP, with 55 still in Escrow.
Some believe this indicates a degree of ownership but the Security and Exchange Commission did not include Ripple or XRP, neither the combinations in a recent statement on the status of Ethereum and bitcoin.
The utility of XRP is in question if it can function without Ripple, some critics believe XRP token is in existence to fund Ripple and boost its value.
Though Ripple may now prefer to be known as a software company, it has traded on XRP token for years. It became one of the most valuable tech startups based on the progress of XRP which is the third most valued digital currency in the world.
Investors need to have a clear distinction between Ripple and XRP to avoid falling into the trap of buying into the digital asset because of Ripple’s performance. It has even been alleged that Ripple distributes XRP by selling the coin and many purchase them as an investment.