Recently, Ripple have initiated a rebrand of XRP to try and encourage people to stop referring to XRP as Ripple. This is mostly because Ripple refers to the company that own XRP, the company that have also produced the xCurrent, xRapid and xVia technologies. XRP, refers to the currency native to these technologies.
Another reason for the rebrand, was to try and help Ripple step away from XRP. Since Ripple own a sum of XRP, many are calling the currency out as a security. These claims, have led to a number of lawsuits that are now causing the company a great deal of problems. As a matter of fact, the most recent lawsuit was filed just yesterday.
Now, we want to have a look at why XRP is still under valued and want to discuss what is going on. Nothing has changed since the rebrand (other than the logo of XRP) so we need to try and unravel what is going on here.
Firstly, as highlighted by Cryptovest, people aren’t spending XRP. The currency is most known for cross border transactions yet it seems that people are holding on to it instead of spending it, therefore, XRP isn’t being used to its full potential and as a result, is failing to hold any value.
See more from Cryptovest, here- https://cryptovest.com/news/xrp-xrp-5-reasons-the-assets-value-is-shaky-after-rebranding/
As mentioned, the security debate and stream of lawsuits is another thing that is holding back the price of XRP. Likewise, XRP’s association with securities is stopping big exchanges such as Coinbase from listing the currency. A coinbase listing would allow XRP to start to rack up value once again, yet, for as long as the security flag is being waved, XRP won’t see this listing, end of story.
Interestingly, the Cryptovest article also believes that confusion surrounding XRP is another factor that is causing problems for the value of the currency. According to Cryptovest:
“The marketing and impression of XRP as a coin for spending is confusing. Is XRP trying to be the internet money, a currency, or a utility coin like Ethereum? So far, the news and updates are only leading to more market speculations.”
We agree with this. Nobody really knows what XRP wants to be anymore. This is proven by the fact people still refer to XRP as Ripple, nobody really knows the true direction of XRP, nor the company. This isn’t a marketing problem as such though, it is just the organic result of the complexities surrounding Ripple as a company and of course, XRP as a currency.