XRP History
The Origins of XRP
XRP was created in 2012 by Jed McCaleb, Arthur Britto, and David Schwartz, who later founded Ripple Labs (originally called OpenCoin). The founders aimed to create a more sustainable and efficient alternative to Bitcoin, focusing on payment processing and remittances.
Unlike Bitcoin and many other cryptocurrencies, all 100 billion XRP tokens were created at once. No mining is required to produce XRP, making it more environmentally friendly and efficient for transactions.
Key Historical Milestones
- 2012:XRP Ledger created and initial XRP tokens minted
- 2013:OpenCoin rebranded to Ripple Labs
- 2015:Ripple fined by FinCEN for Bank Secrecy Act violations
- 2017:XRP price surged, reaching an all-time high of $3.84 in January 2018
- 2018:Ripple launched xRapid (now RippleNet ODL) using XRP for liquidity
- 2020:SEC filed lawsuit against Ripple, alleging XRP was an unregistered security
- 2023:Partial victory for Ripple in SEC case; XRP ruled not a security for public sales
- 2023:XRP Ledger implemented native AMM functionality
The SEC Case
In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, alleging that XRP was an unregistered security and that Ripple had conducted an unregistered securities offering.
This case became one of the most significant legal battles in the cryptocurrency industry, with major implications for XRP and the broader crypto market. The lawsuit caused many exchanges to delist XRP temporarily and led to significant price volatility.
Key Developments
- • July 2023: Judge ruled XRP is not inherently a security when sold on exchanges
- • October 2023: Ripple and SEC both filed appeals on different aspects of the ruling
- • Ongoing: The case continues to evolve with potential settlement discussions
Price History
XRP's price history has been marked by periods of stability followed by significant volatility. The most notable price movement occurred during the 2017-2018 bull run, when XRP reached its all-time high.
Notable Price Points
- • Initial price (2013): ~$0.005
- • First major rally (May 2017): $0.40
- • All-time high (Jan 4, 2018): $3.84
- • Post-SEC lawsuit low (Dec 2020): ~$0.17
- • 2021 high: ~$1.96
XRP's price has been influenced by regulatory news, adoption by financial institutions, and general cryptocurrency market trends. The SEC lawsuit has been a significant factor in recent years.
Ripple's Evolution
While XRP and Ripple are distinct entities, Ripple's business development has significantly influenced XRP's adoption and use cases. Over the years, Ripple has evolved its product offerings and partnerships.
RippleNet
Ripple's global payment network that connects financial institutions for faster, lower-cost payments. RippleNet includes both XRP and non-XRP payment solutions.
On-Demand Liquidity (ODL)
Formerly known as xRapid, ODL uses XRP as a bridge currency for cross-border payments, eliminating the need for pre-funded nostro accounts in destination currencies.
Institutional Partnerships
Ripple has established partnerships with hundreds of financial institutions worldwide, including banks, payment providers, and remittance companies.
