For many of the crypto enthusiasts Ripple (XRP) is one of the tokens that results harsher to read and understand, which is, in fact, one of the major concerns for the third largest cryptocurrency of the market.
Truth be told, even when the coin has managed to stay in the third position of the charts, the decrease in value is more than evident, even being valued now at a price of $0.43484, which means the price is five to six times lower compared to the beginning of the year.
Nevertheless, this is actually the lesser of the major problems that the cryptocurrency is facing as of now. For starters, Ripple Labs is dealing at the moment with a couple of class action lawsuits made by a user who accuses the company of not following the laws of security made by the US government, a fact that without a doubt has raised a lot of comments around the purposes of the token, and additionally, has augmented the opinions of the likely classification of the coin as a security due to its centralization status.
Like this, it seems more than clear that Ripple is not going through its best time, but if we take a closer look on the asset, one may asseverate that the most disturbing affair is that the token seems to be somehow directionless and stuck. Let’s see the main reasoning behind this.
Ripple’s greatest problem of them all
It is not a secret to anybody that Ripple is one of the tokens on the market that has developed the best relationships with the financial industry, and this has led the entire community to believe that via Ripple they will find the link between traditional currencies and virtual coins.
However, nothing’s far from reality than this, in fact, we don’t need to be that analytical to realize that even when Ripple has managed to partner with at least 100 bank entities from all around the world, this relationships center on the products xCurrent, and xVia, solutions designed to improve cross-border payments separately from the XRP token.
In this sense, the only product that carries the XRP token is xRapid, but as of now, it continues out of the picture when it comes to negotiating with a partner, and that is precisely one of the leading critics that Ripple receives. It has been speculated that the company plans to create a bridge between the three solutions at a point, and that convincing a partner to migrate from one solution to another it would be actually an easy thing to do, but the truth is, this is only a matter of conjectures.
Another problem that Ripple needs to solve to find a direction to sail is to come clean with its purpose and the way this matches (or not) with being a cryptocurrency.
For instance, Ripple’s primary target is to solve cross-border remittances and payments in a more efficient way than SWIFT does, but in order to create a solution of this kind, there’s no other outlet than becoming a fully decentralized cryptocurrency, which is, in fact, the latest concern of the community.
As a matter of fact, Ripple protocols rely on antiquated systems that crypto users are trying to surpass by using virtual coins, so as it just seems the picture is just not that clear. Ripple (XRP) has got the potential to revolutionize the financial system as it wants, but the company still need to work hard and get out of the hot water.
To obtain the results and position that Ripple deserves, it must not just settle with just keep scoring partnerships with more banks (who mainly utilize xVia and xCurrent, and not XRP) and just arrange a Snoop Dog alike throwdown occasionally. The company needs to go beyond (and get clear), and it can do it, but at the moment, things are just not looking that good for Ripple compared to how the cryptocurrency is putting all things together correctly.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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