In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that XRP was an unregistered security. The SEC asserted that Ripple’s distribution of $1.3 billion worth of XRP to stakeholders violated securities laws. The lawsuit cast a shadow over XRP’s future and the price of XRP has fallen over 80% since its filing. To ensure the stability of XRP’s price, the developers put constraints on https://www.cryptonews.wiki/ the circulating supply and the total supply of XRP. 1 billion XRP tokens are slowly released from escrow every month to prevent tokens from flooding the market and inflating the price of XRP. Plus, there are a lot of more important factors that affect Alphabet’s stock price than the investments that Google Ventures is making, so you’re unlikely to see a similar performance between Ripple and Google.
TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with). Before making your purchase, research which trading platform suits you best based on security and ease of use. Ripple, XRP, and XRP Ledger are often used interchangeably, but they represent distinct entities with different roles. Ripple is the company that develops and promotes XRP-based payment solutions.
However, it can still be bought and traded on other exchanges, such as Binance, as well as via several stock brokers such as eToro. Since buying Ripple Labs stock is a no-go for now, the best way to capture some of the company’s anticipated growth is through their product – in this case, the Ripple crypto token, XRP. This venture fund is making venture investment accessible, and aiming to generate venture market returns. Let’s go over how you can invest in Ripple as a retail investor or an accredited investor. With a market cap of over $19 billion and a highly publicized lawsuit with the SEC, Ripple has been making waves in the world of crypto.
Does Chris Larsen Own Ripple?
However, some exchanges don’t accept all cryptocurrencies — and some cryptocurrencies can’t be traded with one another — so be aware of those limitations as you prepare to buy. Additionally, exchanges charge different fees depending on what you’re buying and how. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory https://www.cryptominer.services/ or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. In short, it’s a platform and a cryptocurrency that could help financial institutions provide a better payment experience. And you’ve probably heard of a few of its customers, which include Bank of America, American Express and Santander, to name a few.
XRP was designed as a utility token and a settlement layer for cross-border payments within the Ripple ecosystem. The market reacted positively to the July court ruling, indicating renewed investor confidence in the cryptocurrency while highlighting distinctions between retail and institutional investors. XRP’s value nearly doubled in the week following the decision, causing its market capitalization to jump from $24.7 billion to $42.8 billion. The court ruling also led the SEC to drop the lawsuit’s charges against individual Ripple executives, CEO Brad Garlinghouse and co-founder Chris Larsen, in October 2023.
This guide will explain why most crypto investors choose to buy XRP, how you can join the fray, and which platforms support buying, selling, as well as trading the asset. The problem is, Ripple isn’t the easiest crypto currency to buy, and in 2020, the SEC filed charges against Ripple and two founders in regard to XRP. As a result of the this action, most centralized exchanges (like Coinbase) have suspended trading on XRP. However, on July 13, XRP won the lawsuit and the court declared that XRP is not a security. That lead to a huge rally, but we’re still waiting on exchanges to re-allow XRP trading.
Kraken is among the oldest cryptocurrency exchanges in existence, having been launched in 2013. The platform is based in San Francisco, California, and offers its crypto-related services across the world and in several states within the US. With Kraken, you may not be able to trade XRP, but you can buy the coin and send it off the platform. Hiive is a secondary marketplace where accredited investors can buy shares of private companies before they go public. Designed to make payment transactions faster and cheaper, Ripple’s platform—with the help of its XRP token—settles payments at a fraction of the cost of traditional methods. In this way, XRP is one of the more ambitious cryptocurrencies aimed at revolutionizing global payment systems and the digital economy.
We had also outlined a simple step-by-step process to acquire XRP from Uphold, one of the few exchanges that still allow its users to buy XRP. Most other exchanges offer a similar process to buy crypto, but the details may vary. You can tinker with your chosen platform to figure out the process or contact the official customer support for help. If you opted for the instant purchase using debit cards, you are probably ready for the next step.
If you’re buying XRP, consider how you think an adverse legal decision might affect its value — and whether that’s a risk you’re willing to take. An SEC complaint filed in December 2020 alleged https://www.crypto-trading.info/ that XRP was an unregistered security and that the company’s sale of XRP violated federal securities law. In recent months, the price of XRP has typically traded for well under a dollar.
However, if you opted to transfer funds from your bank account, you may have to wait a few days for the funds to reflect on your online account. Even though XRP is undergoing a legal battle, it is still legal to purchase in the US and in several other jurisdictions across the world. Plus, there are still a number of credible crypto exchanges through which you can acquire some XRP. Here are four of the best crypto exchanges that currently support XRP trades.
Step 1 – Where to Buy XRP Crypto exchanges that sell XRP
It shares a lot with the increasingly popular proof of staking (PoS) mechanisms and, in particular, the Delegated PoS (dPoS) consensus mechanism. When the XRP tokens are sent from one wallet to another, they are transferred on the XRP ledger (XRPL), which is a blockchain network similar to Bitcoin in functionality. However, unlike Bitcoin, the XRPL does not use mining as a consensus mechanism.
- The College Investor does not include all companies or offers available in the marketplace.
- You can, however, take a look at this chart of Ripple’s cryptocurrency, XRP, to get a feel for the buzz around Ripple.
- When the XRP tokens are sent from one wallet to another, they are transferred on the XRP ledger (XRPL), which is a blockchain network similar to Bitcoin in functionality.
- Keep in mind that cryptocurrencies are extremely risky and that an investment in XRP is not an investment in Ripple Labs.
Equitybee gives accredited investors the opportunity to become an investor in private companies like Stripe, Reddit, and Databricks by funding employee stock options. However, this isn’t as straightforward as investing in some other crypto tokens, on account of the whole SEC business. Several US-based exchanges, notably Coinbase, have delisted the cryptocurrency. The box highlighted below the credit card box shows the available crypto networks from which you can transfer digital assets to Uphold. In our case, we have already added a bank account, so we will select that, which will close the dialogue box. The various cryptocurrency exchanges will have different processes on how to purchase XRP, and because of that, we will give you an example step-by-step guide on how to buy XRP on Uphold.
How to buy Ripple stock?
Our estimates are based on past market performance, and past performance is not a guarantee of future performance. The future of XRP remains uncertain as Ripple continues to navigate a complex legal landscape and regulatory scrutiny. While recent court rulings have provided some clarity, the long-term viability of XRP hinges in part on the outcome of an ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) and the evolving regulatory environment surrounding cryptocurrencies. Ripple Labs is a private company, so it isn’t required to publicly disclose its exact ownership structure. It can be sent and received by counterparties in a transaction at fast speeds and cheaply.
In addition to its private equity investors, Chris Larse, an angel investor and co-founder of Ripple, owns 17% of the company. Ripple has been funded by 43 investors including Pantera Capital, Andreessen Horowitz, Blockchain Capital, Seagate Technology, Google Ventures, Siam Commercial Bank, Westpac Banking Corporation, and others. With the lawsuit almost behind it, many investors are wondering how to invest in Ripple Labs. Its solutions are faster, more transparent, and more cost-effective than traditional financial services. Many or all of the products featured here are from our partners who compensate us.
The company is still contending with allegations that its sales to institutional investors were unregistered securities, and it’s possible the SEC could appeal the order on consumer sales. Despite the legal challenges, Ripple Labs has expanded its global reach, developed new products and services, and made progress in securing regulatory approvals in certain countries. For example, in June 2023, the company was granted a license to offer regulated digital payment token products and services in Singapore, a major financial hub in Southeast Asia.
Ripple has had its eyes set on an IPO for a while now – with that intention first being stated by CEO Garlinghouse at the WEF in Davos in 2020. While the SEC court case has delayed those plans, Garlinghouse is still committed to that course. Chris Larsen is the largest single stakeholder in the company, owning a 17% stake in the venture. After him, current CEO Brad Garlinghouse is the second-largest stakeholder, with a 6.3% share.
