What is Ripple?

On July 13, 2023, XRP rose to fourth place in the cryptocurrency ranking with a 70% increase in just 24 hours following the ruling in favor of Ripple Labs. It was excellent news for holders who had been waiting for this moment for over two years. It also caused tension, awakening the detractors of Ripple from their lethargy.

XRP evokes equal parts love and hate. When it comes to trading cryptocurrencies, some consider it a boring cryptocurrency. For their part, holders defend their investment with various arguments that highlight the long-term potential of the token and its use cases. But let's not forget the company that gave life to XRP: Ripple Labs.

To understand the story of the XRP coin, one must know what Ripple is. It is important to differentiate between the company, the network, and the token. Initially, XRP Ledger was known as “Ripple.” The project’s tokens were called “ripples.” Since everything was very confusing, a new name was agreed upon for the native token: XRP.

Although “XRP” and “Ripple” are often used as equivalent terms, it is preferable to differentiate between the founding company (Ripple Labs or Ripple), the network/ecosystem (XRP Ledger or XRPL), and the currency (XRP). This differentiation will help us understand what XRP is and why Ripple Labs executives have had to face the SEC in court.

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