Is Ripple Coin ($XRP) Crypto Scam or Legit ?? 🔥

 

 

Is Ripple Coin XRP a Scam?

 

The Ripple coin XRP has been a topic of much controversy in the cryptocurrency world, with many people questioning its legitimacy as a currency. In this article, we will take a closer look at Ripple and its business model to determine whether it is a scam or not.

 

Ripple’s Business Model – A Pump and Dump Scheme?

 

At its core, some people believe that the Ripple business model is a pump and dump scheme. This means that Ripple engages in activities to artificially inflate the value of the XRP cryptocurrency. However, the company takes steps to hide this fact. The company’s business model starts with the issuance of billions of XRP coins, which are essentially created out of thin air. The coins are issued by an open source “community,” not by Ripple itself.

 

Ripple owns a significant amount of XRP, and the company has a say in who can process XRP transactions, making the currency centralized and permissioned. As a result, many people in the cryptocurrency community don’t consider XRP to be a true cryptocurrency because it is not decentralized.

 

Ripple’s Claimed Customers – Are They Real?

 

Ripple claims to have many customers, but a closer look reveals that most of these companies are “partners,” not customers. In fact, Ripple pays companies to become partners through its RippleNet Accelerator Program. The program is funded by $300 million of XRP from Ripple’s XRP holdings. This means that Ripple is using its free XRP coins to create the illusion that it has paying customers, when in reality, it is paying the companies.

 

The Problem of Liquidity

 

Ripple’s goal is to lower what it calls “liquidity cost” through its incentive program. For XRP to work as an intermediate currency, institutions must maintain reserves of XRP to respond to transaction requests. However, XRP is too volatile, and holding XRP as a currency is not credible. Additionally, maintaining liquidity in XRP does not solve the problem of money transfers between countries with more stable currencies to those with less stable ones, as these transfers generally only go one way.

 

Is XRP a Security?

 

Like many cryptocurrencies, Ripple classifies XRP as not being a security to avoid regulatory controls. However, the US Securities and Exchange Commission (SEC) has yet to make a definitive ruling on whether XRP is a security or not.

 

Conclusion

 

Ripple’s business model and practices raise serious questions about its legitimacy as a cryptocurrency. From its issuance of billions of XRP coins, to its claims of having paying customers, to the problem of liquidity, Ripple’s reputation is far from solid. While the SEC has yet to make a definitive ruling on the status of XRP, it’s up to individuals to conduct their own research and make their own decisions about whether to invest in XRP or not.