Ripple was founded in 2012 by Chris Larsen and Jed McCaleb. The company is a pioneer in using Blockchain technology to create a practical solution. Through RippleNet, its payment platform that runs on a Blockchain, the company provides a seamless way to send money overseas money regardless of location or particular bank. With over 200 financial institutions piloting RippleNet, the company’s products represent a long awaited disruption to the $1.75 trillion payments industry.
Ripple also owns XRP, the cryptocurrency that runs on RippleNet to provide a low-cost cross-border transaction and eliminate risks associated with payment processing. Ripple created a total of 100 billion XRP, of which nearly 40 percent currently circulates. XRP is the third largest cryptocurrency traded on global crypto exchanges after Bitcoin and Ethereum.
The company, which employs more than 300 people, raised $93.5 million over two funding from prominent investors like Blockchain Capital, Andressen Horowitz and Google Ventures. While we cannot yet establish a valuation range for Ripple, investor sentiment has been pretty positive for the company. Previous mutual funds marks and secondary transactions suggest Ripple peaked during early 2018, with investors valuing the company up to $1.8 billion, when the crypto market was at an all time high. Since the onset of crypto winter in 2018, Ripple’s valuation came down to $800 million to $1.1 billion. Should the Securities and Exchange Commission offer favorable regulatory guidance in the future, Ripple will likely enjoy a valuation boost since the company already makes scalable products that global financial institutions could adopt.
Ripple competes in the payments sector, a huge market opportunity. The company enjoys an early lead thanks to its products and partnerships with major financial institutions across the globe. However, Blockchain is still nascent technology; the impact of any regulatory changes to the cyptocurrency and Blockchain industry need to be closely monitored.
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