XRP emerged in 2012 as a payment-focused cryptocurrency and quickly filled a niche for cheap and fast cross-border transfers. Unlike Bitcoin’s mining process, XRP’s supply was pre-mined — a total of 100 billion tokens, some distributed on the market while the remainder was held in escrow by Ripple Labs. Over the years, XRP combined the technical features of a fast ledger with controversies around token distribution and regulatory status.
What is XRP?
XRP is the native token of the XRP Ledger (XRPL), a decentralized open-source ledger designed to settle transactions within seconds with minimal fees. XRPL aims to simplify value transfer between different currencies and reduce costs for cross-border payments. A key difference from Bitcoin is that XRP is not mined: the entire supply was created upfront, with part released to the market and part held in escrow by Ripple Labs.
Differences from Bitcoin and Ethereum
While Bitcoin and Ethereum are often positioned as a store of value or a platform for smart contracts, XRP focuses on speeding up and lowering the cost of cross-border transfers. The XRPL architecture and pre-issued supply make XRP’s model fundamentally different from mining-based and gradual issuance models.
Ripple Labs and Its Influence on XRP
Founded in 2012, Ripple Labs actively promoted products to accelerate interbank transfers using XRP for on-demand liquidity. Ripple’s products target banks and financial institutions to enable faster and cheaper international settlements compared to traditional systems. At the same time, the significant portion of XRP supply controlled by Ripple sparked criticism and questions about the ledger’s degree of centralization.
The debate over control and token distribution is illustrated by the practice of holding part of the supply in escrow — detailed further in the article about 500 million XRP in escrow, which explains the mechanisms for locking up reserves.
XRP Price Dynamics
In the early years after launch, XRP’s price remained very low, trading below $0.01 in 2012–2013. This initial period was marked by low liquidity and early technology adoption, so prices were far from future peaks. Later, during the 2017–2018 surge of interest, the token rose from under $0.01 to its first major peak above $3.00 per unit.
Price development continued with volatility: by mid-2025, XRP reached an all-time high of about $3.65, surpassing previous records. Price fluctuations were accompanied by shifts in investor sentiment and news regarding the token’s legal status.
Regulatory Challenges and Their Impact
A major challenge for XRP was the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs in December 2020. The SEC alleged that Ripple’s sale of XRP tokens constituted unregistered securities offerings, leading to a prolonged legal battle and affecting the token’s listing on some platforms.
Ultimately, in 2025, the case was settled: the SEC dropped the charges after Ripple paid a fine, which helped restore some market confidence in XRP.
XRP Today
Currently, XRP remains one of the notable cryptocurrencies by market capitalization, although it has undergone correction phases after peak values. Its market position reflects a combination of the ledger’s technological advantages, questions about supply distribution, and the outcomes of regulatory disputes. For insights into price trends and technical signals, it’s useful to consult materials on current market pressures, such as the article on XRP under pressure.
Why This Matters
Whether you mine or hold cryptocurrency, understanding XRP’s history helps evaluate how ledger technology and legal status affect liquidity and trading dynamics. Regulatory disputes directly influenced token availability on exchanges and price volatility, which is important for portfolio risk management. Additionally, the pre-mined supply model and escrow practices impact the long-term availability of tokens on the market.
What to Do?
If you have anywhere from one to a thousand devices and mine or hold XRP positions, first ensure your keys and wallets are secure: use hardware wallets or trusted software solutions and keep backups. Follow official Ripple announcements and regulatory news, as these directly affect listings and trading pair availability on exchanges.
Secondly, assess liquidity and trading volume on platforms where you trade or plan to sell tokens, and plan large transactions in stages to reduce slippage. Finally, consider your energy costs and tax obligations in Russia when calculating profitability — this will help make informed decisions about holding or selling assets.