Is Ripple (XRP) a Security? Here’s What You Need to Know

Everyone is talking about Ripple (XRP) and cryptocurrency experts are usually saying good things about it. The only downside about Ripple (XRP) is that some experts are seeing it as a security. This caused an entire debacle and rumor has it that Coinbase hasn’t listed Ripple (XRP) because it believes that it’s a security. In addition, Ripple (XRP) was expected to be listed on Coinbase a long time ago because it is ranked as the third largest cryptocurrency in the world.

Even though there are many cryptocurrency experts who are trying to prove that Ripple (XRP) is a security, they all are failing to bring proof to their claims. Therefore, today we are going to show everyone the main reasons why Ripple (XRP) is not a security and debunk this rumor.

Not Raising Capital for the Company

The one thing that all securities have in common is the fact that all of them raise capital for their companies. Well, XRP was founded before the Ripple company and this shows that XRP was never intended to raise capital for the company. The only real connection between XRP and Ripple is that the same people founded them and that the company owns a large amount of XRP tokens.

XRP is not a Company Stock

The main reason why some experts are saying Ripple (XRP) is a security is because as previously mentioned, the company owns a large amount of tokens. However, people shouldn’t make the mistake of thinking that XRP is a company stock. Let’s say for example Apple holds stocks in its own company, this is not similar to Ripple owning XRP tokens.

Cryptocurrency investors who purchase XRP tokens are not buying company stakes in Ripple Labs. Therefore, owning lots of XRP will not give anyone the right to vote on what the company does next. This means that the company’s developments don’t have any bearings on XRP.

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