You may be surprised, but even the recent fivefold increase in XRP's price is far from the limit.
Let me first tell you a little about what has been happening with XRP in recent years and why the fate of the token is both troubling and inspiring.
What is wrong with XRP?
In the world of cryptocurrencies, there are projects that evoke mixed feelings among investors. XRP is one of them. It is an asset that some call a 'centralized illusion,' while others call it 'the future of financial transactions.' But let's be honest: XRP has a number of problems, and some of them are so serious that they make us think about its future.
First of all, the issue of centralization. It needs to be remembered every time we talk about XRP. The token is managed by Ripple, which, critics argue, has excessive influence on the network and its development. Agree, this is not what we expect when we talk about cryptocurrencies. In terms of survivability, decentralized networks evoke more trust, while centralized projects can die from a single mistake or problem with their owners. And one of such problems became...
Legal battles. Ripple is engaged in a lengthy fight with the U.S. Securities and Exchange Commission (SEC), which accuses the company of selling unregistered securities. This process has been ongoing for several years, creating a shadow of uncertainty for XRP. As Buffett said: 'The market is a game of musical chairs, but sometimes the music stops unexpectedly.'
Another problem that is particularly acute for XRP is competition. Cryptocurrencies are perhaps the fastest-growing market today, due to the influx of money and the universality of blockchain technology: it seems that it can be applied in one form or another almost everywhere. XRP is already facing strong pressure from new blockchain solutions offering similar or more advanced technologies. There is an opinion that everything XRP offers has always been secondary.
And yet,
Problems are just the flip side of opportunities.
Despite all these problems, XRP has not only survived but also demonstrates remarkable resilience. Let me remind you that the company has been around since 2012, and the price of its token continues to please. It seems that the centralization of XRP only benefits the token; there is no doubt that only a company resembling a traditional business could negotiate with SWIFT, global banks, and financial institutions about the integration of blockchain technologies into familiar payment systems.
As Brad Garlinghouse, CEO of Ripple, noted: 'The key to success is not to avoid challenges, but to use them for growth.' This is exactly what the company is doing. Ripple is actively preparing to launch a stablecoin that could become a catalyst for the large-scale development of the network.
The launch of its own stablecoin and the future of XRP.
What is a stablecoin? It is a token pegged to the value of a traditional currency, such as the dollar. Why does XRP need this? It's simple. Stablecoins are a bridge between the traditional financial system and the crypto economy. They facilitate transactions, eliminate volatility, and increase trust in the project.
If Ripple successfully launches its stablecoin, it will attract major players — financial institutions, corporations, and even governments. The more users that utilize the stablecoin, the more transactions will occur through the XRP network. And what happens when the demand for the network grows? Right, the demand for the underlying token increases. Here's how this will happen step by step:
1. Launch of the stablecoin: attracting new users.
2. Increase in network usage: growth in the number of transactions.
3. Growth in demand for XRP: the necessity of the token for ensuring liquidity.
4. Increase in token price: market reaction to growing demand.
I recommend you to find out how the company Tether uses its USDT token to generate profit. This company's experience has shown that it is very profitable to have your own stablecoin, the backing of which can remain undisclosed :-) I am sure this is a direct path to attracting liquidity.
Risk or opportunity? The decision is yours.
XRP is a story of contradictions. Yes, it has its flaws: centralization, legal problems, competition. But on the other hand, this is a project that can fight the SEC for 8 years and continue to develop all this time.
XRP currently raises more doubts than enthusiasm, especially after the recent rise, which for many seems like too high a price, creating the feeling that this train has already left.
And I agree that not buying XRP this summer was a big mistake.
However,
I still believe that Ripple's potential is not even close to being fully realized.
If you want to trade XRP in the near future, you can look forward to the launch of RLUSDT from Ripple, which is expected "very soon."
If you are a long-term investor (great respect to you), think about this: XRP's problems have been around almost since its inception. And if these problems could have killed this token, perhaps it would have happened by now? From this perspective, XRP looks like a token whose most dangerous times are already behind it, while the dawn has yet to arrive.
In the recent elections in the USA, both presidential teams were negotiating with Ripple to restart relations.
It seems that in the near future we will see the end of the legal saga, which will undoubtedly make Ripple more interesting to traditional investors.
Today, the price looks significantly lowered during the correction, for further growth. Don’t expect a green background for buying. It’s for selling.
The decision is yours. You can ignore XRP, as many do, or see in it the potential that will only become obvious to everyone tomorrow. The question is whether you are ready to take the risk for future rewards.
