Introduction
In 2017, Ripple Coin (XRP) outperformed mainstream and altcoins with staggering gains:
- 80% in 24 hours
- 1,500% in a month
- 36,000% in a year
An initial $600 investment (at $0.0063/XRP) could have turned into millions. By Thursday, XRP hit a record $3.85, cementing its position as the **second-largest cryptocurrency** by market cap (over $100 billion).
Key Highlight:
👉 Ripple co-founder Chris Larsen’s XRP holdings alone surpassed $13.7 billion, propelling him to #22 on Bloomberg’s Billionaires Index.
The Drivers Behind XRP’s Surge
1. FOMO (Fear of Missing Out)
Investors rushed to buy XRP amid hype, fueled by:
- Speculative trading
- Viral (but unverified) news, like the false Coinbase listing rumor
- South Korean traders, who accounted for 30% of XRP’s trading volume
2. Affordability Bias
Newcomers often gravitated toward low-priced coins, making XRP a seemingly accessible choice.
3. Limited Real-World Adoption
Despite partnerships with 100+ banks (e.g., Santander, SBI Holdings), most use Ripple’s xCurrent (fiat-based settlements) — not XRP.
Rising Skepticism: 3 Core Concerns
❗ Concern 1: Centralization Risks
- XRP is pre-mined (100 billion total supply), with 60% held by Ripple.
- Only 5 validator nodes control consensus, raising decentralization doubts.
❗ Concern 2: Weak Utility
- xRapid (XRP-powered transfers) lacks adoption. Only Caulix (Mexico) tested it.
- Ripple’s ILP protocol doesn’t require XRP, further limiting its use cases.
❗ Concern 3: Market Manipulation
Escrow releases (10 billion XRP/month) could allow Ripple to influence prices.
Ripple’s Response
CEO Brad Garlinghouse countered critics:
"Banks are actively exploring xRapid for 2018 Q1."
Product VP Asheesh Birla hinted at upcoming XRP adoption in remittances — but offered no concrete details.
FAQs
Q1: Is XRP truly decentralized?
A: No. Ripple controls most supply and validators, making it more centralized than Bitcoin.
Q2: Why do banks avoid XRP?
A: They prefer Ripple’s fiat-based xCurrent over volatile XRP for settlements.
Q3: Should I invest in XRP?
A: High-risk. While Ripple’s tech is promising, XRP’s value depends on adoption that hasn’t materialized.
👉 Learn more about blockchain investment strategies
Conclusion
XRP’s 2017 boom was driven by speculation — not fundamentals. Its future hinges on real-world utility and banking adoption. Until then, skepticism remains warranted.
Disclaimer: This article is informational only and not investment advice.
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