Discover XRP's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is XRP?

XRP is a cryptocurrency and the native token of the open-source XRP Ledger (XRPL) blockchain. It is designed to enhance global financial transfers and currency exchange, offering fast, cost-effective, and energy-efficient transactions. XRP is pre-mined with a total supply of 100 billion tokens and is used by Ripple, a payment settlement system and currency exchange network, to facilitate transactions between financial institutions, businesses, and organizations.

How is XRP used?

XRP is used as a bridge currency to facilitate the transfer of value between different fiat currencies. It operates on the XRP Ledger, a decentralized, open-source blockchain. XRP is pre-mined, with a total supply of 100 billion tokens, and is used by Ripple, a blockchain services company, to enhance global financial transfers and exchange multiple currencies. It is also used by investors to store value and profit from price fluctuations.

How do I store XRP?

To store XRP tokens securely, you have several options:

  1. Hardware Wallets:

    • Ledger Nano S and Ledger Nano X are highly recommended for their robust security features, including offline storage and multi-factor authentication.
    • Trezor and D'cent are also popular choices for secure hardware storage.
  2. Software Wallets:

    • XUMM Wallet is a popular choice for its user-friendly interface and compatibility with Ledger hardware wallets.
    • Trust Wallet and Safepal are also reliable options for managing XRP tokens on mobile and desktop devices.
  3. Desktop and Mobile Wallets:

  • Toast Wallet and Rippex are desktop wallets that provide a secure environment for managing XRP tokens.
  • Mobile wallets like Ledger Live App and Crypto.com’s DeFi wallet offer convenient management options on-the-go.
  1. Cold Storage:
    • Ellipal and SafePal air-gapped cold storage provide an additional layer of security by storing XRP tokens offline.

When choosing a wallet, consider factors such as security features, user interface, and compatibility with your devices. Always ensure you securely manage and keep track of your wallets and their respective private keys or recovery phrases to protect your XRP tokens.

How to buy XRP?

To buy XRP (Ripple) tokens, follow these steps:

  1. Select a Crypto Exchange:

    • Choose a reliable and secure exchange that supports XRP trading, such as Binance, Coinbase, Kraken, or Bybit.
  2. Create an Account:

    • Register on the chosen exchange's website or mobile app, providing necessary identification and verification details.
  3. Fund Your Account:

  • Deposit funds into your exchange account using a payment method accepted by the exchange, such as a credit card, debit card, bank transfer, or third-party payment channels.
  1. Buy XRP:

    • Navigate to the exchange's trading platform, select XRP, and enter the desired investment amount. Confirm your purchase and wait for the transaction to process.
  2. Store Your XRP:

    • Securely store your XRP tokens in a dedicated XRP wallet, such as a hardware wallet (e.g., Ledger), paper wallet, software wallet (e.g., Trust Wallet), or leave it on the exchange's storage service.

Remember to research the exchange's fees, security, and ease of use before making a purchase. Additionally, consider the risks associated with investing in cryptocurrencies and ensure you understand the market before investing.

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History of XRP

The history of XRP (XRP) dates back to 2004 when Ryan Fugger founded RipplePay in Vancouver, Canada. Initially, RipplePay aimed to securely move money around the world. In 2012, Fugger sold the company to Jed McCaleb, Arthur Britto, and David Schwartz, who transformed it into a digital currency network and renamed it OpenCoin. The company was later renamed Ripple Labs in 2013 and then shortened to Ripple in 2015.

In 2012, the XRP Ledger was launched, and XRP was created as the native token. XRP was premined, with a total supply of 100 billion tokens. The founders allocated 80 billion tokens to Ripple, with 55 billion locked in an escrow account, and the remaining 20 billion to the core team.

XRP was designed to facilitate fast, low-cost, and energy-efficient transactions. It operates on the XRP Ledger, which uses a unique consensus mechanism based on the Federated Byzantine Agreement (FBA) model. This mechanism allows for faster transaction times, with an average of 3-6 seconds, and high scalability, processing 1,500 transactions per second.

In 2013, Jed McCaleb left Ripple and forked the project into Stellar. The same year, Ripple Labs was renamed Ripple, and the company continued to develop the XRP Ledger and its ecosystem.

Over time, XRP gained popularity as a bridge currency for financial transactions, particularly among banks and financial institutions. Today, XRP is traded on various exchanges and is used for its low commissions and fast transaction times.

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How XRP works

XRP, the native cryptocurrency of the Ripple network, operates on a unique consensus algorithm called the Federated Byzantine Agreement (FBA) model. This model does not require mining or staking to validate and record transactions. Instead, it relies on a group of trusted validator nodes, known as the Unique Node List (UNL), to achieve consensus and maintain the transaction ledger every 3 to 5 seconds.

Consensus Algorithm

The FBA model ensures that transactions on the Ripple network are validated by a group of trusted validators rather than through mining or staking. These validators come to a consensus on the order and validity of transactions, making the network more efficient and secure.

Issuance of XRP

Ripple holds a significant portion of the 100 billion pre-mined XRP tokens in escrow, and a small amount of XRP is released to the market periodically to fund network operations and promote liquidity. This pre-mining approach allows Ripple to manage the supply of XRP and reduce uncertainty regarding its release.

Liquidity Provider

XRP serves as a liquidity provider in the Ripple network. When two parties want to transact across different fiat currencies, XRP acts as an intermediary, allowing funds to be transferred quickly and efficiently. For example, if someone wants to send US Dollars to a recipient in Japan who wants to receive Japanese yen, XRP can be used as a bridge currency to facilitate the exchange.

Transaction Speed and Cost

Ripple's design aims to provide cross-border transactions quickly and affordably. The consensus algorithm enables transactions to be settled in a matter of seconds, and the use of XRP as a bridge currency can reduce transaction costs compared to traditional banking methods.

Gateways and Trust Lines

Users must establish trust lines with gateways on the Ripple network to hold and transact XRP. Trust lines allow participants to exchange value within the network while maintaining the integrity of the system.


Ripple's network and the XRP ledger are considered more centralized compared to other cryptocurrencies like Bitcoin or Ethereum, due to Ripple providing a preferred list of validators. This centralization has been a point of controversy and debate within the crypto community.

XRP Ledger

The XRP Ledger is an open-source, permissionless, distributed ledger that has the ability to settle transactions in 3 to 5 seconds. It is the blockchain that powers XRP and is responsible for recording transaction data such as balances, accounts, and transfers.


The network is in charge of validating all outstanding XRP transactions, on average, every three to five seconds. Validators must agree on a set of transactions for a particular ledger entry based on the Ripple Protocol Consensus Algorithm. Consensus is reached when at least 80% of validating nodes agree on the transaction’s legitimacy.

Use Cases

XRP can be used for transactions or as an investment. The Ripple network can also be used to process other types of transactions, like exchanging currencies, offering a faster and cheaper alternative to traditional methods.

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XRP's strengths

XRP, the native cryptocurrency of the Ripple network, has several strengths that make it an attractive option for various use cases:

  1. Fast Settlement: XRP transactions are incredibly fast, with confirmations happening in a matter of seconds. This speed is significantly faster than other cryptocurrencies like Bitcoin.

  2. Low Fees: The cost to complete a transaction on the Ripple network is very low. The standard fee for transactions is a minimal 0.00001 XRP, making it an economical choice for users.

  3. Versatility: Ripple's network can be used to process various types of transactions, including currency exchanges, offering a faster and cheaper alternative to traditional methods.

  1. Adoption by Large Financial Institutions: Ripple has gained significant adoption from major financial institutions, which enhances its credibility and potential for widespread use.

  2. Cost-Effective Transactions: XRP allows for faster and more cost-effective transactions compared to traditional methods, making it an attractive option for businesses and individuals alike.

  3. Scalability: The Ripple network is designed to handle a high volume of transactions, processing up to 1,500 transactions per second, making it highly scalable.

These strengths position XRP as a reliable and efficient cryptocurrency for various applications, particularly in the realm of cross-border transactions and international business.

XRP's risks

XRP, the native cryptocurrency of the Ripple network, faces several risks that investors should be aware of:

  1. Centralization: Ripple has a significant influence over the Ripple network, which can lead to concerns about centralization. This is in contrast to the decentralized nature of many other cryptocurrencies, which is a key aspect of their appeal.

  2. Pre-mining: XRP was pre-mined, with 100 billion units created and periodically released into the market. Ripple owns a portion of XRP, which can lead to uncertainty regarding its release and potential market manipulation.

  3. Regulatory Uncertainty: Ripple has faced legal challenges from the U.S. Securities and Exchange Commission (SEC), which has accused the company of selling unregistered securities in the form of XRP. Although the court has ruled that XRP by itself is not a security, the SEC's lawsuit remains ongoing, and regulatory uncertainty can impact the value of XRP.

  1. Security Threats: Researchers have identified vulnerabilities in the Ripple network, particularly in certain nodes that can be targeted for attacks. This could put approximately 50,000 wallets at risk if such an attack were to occur.

  2. Competition: Ripple's payment system faces competition from other innovative payment systems and cryptocurrencies. If these alternatives prove more attractive, the use of Ripple and XRP could decrease.

  3. Market Volatility: As with other cryptocurrencies, XRP is subject to significant price fluctuations, which can result in substantial losses for investors.

  1. Counterparty Risk: Users holding balances with gateways on the Ripple network are exposed to counterparty risk, where the gateway may not honor its IOU (I owe you) or liability, leading to potential losses.

These risks highlight the importance of careful consideration and thorough research before investing in XRP or any other cryptocurrency.

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Did XRP raise funds?

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XRP’s team

  • Jed McCaleb: Co-founder and engineer who developed the XRP Ledger alongside Arthur Britto and David Schwartz.
  • Arthur Britto: Co-founder and engineer who developed the XRP Ledger alongside Jed McCaleb and David Schwartz.
  • David Schwartz: Co-founder, engineer, and Chief Cryptography Officer who developed the XRP Ledger alongside Jed McCaleb and Arthur Britto.
  • Chris Larsen: Co-founder and former CEO of Ripple Labs, involved in the early development and use cases for XRP.
  • Brad Garlinghouse: Current CEO of Ripple Labs, involved in the company's leadership and strategic direction.

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