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Why we do not support nor invest in Ripple

DISCLAIMER: What you are about to read is an opinion.  This article is for entertainment purposes only and is not meant to hurt the sentiments of anyone.  Since this is an opinion, it is entitled to be completely false. Ripple is top 3 cryptocurrency on the coinmarketcap as of this writing.  It has made a brief victory lap at number 2 at the end of 2017.  Invest in Ripple has also made a lot of people lot of money, even multi-millionaires.

Then why did we start this article’s title stating outright that we do not support Ripple.  Some might say we are sour for missing out the boat and some might say we are naive, both of which might be true, depending on who you ask.

For the very reason of being called out as jealous or naive or to avoid being attacked, we are going to place an additional disclaimer here.  This article is stitched together to be an opinion piece to welcome dialog rather than debate. What this means is, whether you agree or disagree with us, you are welcome to share your thoughts to ADD to this piece rather than to start a debate or crypto-war.

This article is stitched together to be an opinion piece to welcome dialog rather than debate.  

Having that out of the way, we will navigate this article under the below subject lines.

  • Emotional
    • Bankers greed, rehashed
    • Where art thou Privacy?
    • Media, in the pockets
  • Practical
    • Is XRP required?
    • Adoption and penetration
    • Fiat friendly
  • Crypto-technological
    • It’s not blockchain
    • It’s not innovative
    • It’s not crypto
    • It’s not decentralized
  • Why it may win?
    • Purported bitcoin contender
    • Superfast transactions
    • Active marketing team and social presence
    • Partnerships with financial institutions
  • Why it may lose?
  • Conclusion

Emotional:  Many crypto fans get emotional whenever the topic of Ripple comes along.  Lot of them had an opportunity to invest in Ripple when it was trading at .000 something.  Many individuals, like us, resisted the temptation because they understood what Ripple represents and stands for.

They were burned, brutally.

This added fuel to the fire.   Already scarred crypto public got even more pissed off because of how big and ugly Ripple was getting to be, same as rest of financial institutions space.  The very core of crypto revolution has been shaken up (and still continues to be) with the way Ripple has penetrated the market.  There are few more reasons that add to the resentment of crypto loyals.


  • Bankers greed, rehashed: Everything that happens in the technological space happens fast, however, fast in this context could be anything that happens in a decade or so.  It took more than few years for Blockbuster to be completely busted by NetFlix.

Bankers are slowly realizing that blockchain technology is here and will not go away.  Cryptocurrencies are here to stay and will not go away in spite of FUD they garner on the mainstream media.

Ripple is giving a way for bankers to ‘participate’ in this new technological revolution without ever touching or sniffing the blockchain or cryptocurrencies. In that regard, Ripple in our opinion is giving ammunition to big financial institutions to undermine blockchain technology and crypto currency space.

Ripple in our opinion is giving ammunition to big financial institutions to undermine blockchain technology and crypto currency space.

It became evident how low Ripple will stoop to when the news of it trying to ‘bribe’ Coinbase and Gemini exchanges came to limelight.  This is a warning sign of what happens when a centralized entity gets its hands on too much money and power.

It became evident how low Ripple will stoop to when the news of it trying to ‘bribe’ Coinbase and Gemini exchanges came to limelight. 

In our view, Ripple can empower greedy financial institutions to circumvent the full brunt of blockchain revolution and manipulate the crypto space and its technological advancements with the sheer power of money they sit on.  For this very reason, and keeping the spirit in which crypto space came to be, we are not big fans of Ripple.

  • Where art thou Privacy?

Ripple has settled with the Department of Justice to a fine of $700,000 and to cooperate in releasing the details of its customer base. You don’t trust us?  Make whatever you want to of this statement lifted directly from the Department of Justice’s portal

“Further, the remedial framework calls for external audits through the year 2020, enhancements to the Ripple protocol, increased transaction monitoring and an extensive review of historical activity.”

Mind you, we never recommend evasion of taxes or being involved in anything that is illegal.  We ourselves disclose and declare all our holdings to the respective tax authorities and encourage you to do the same

Crypto space provides ‘privacy’ as a choice (not as a means to evade) which is one of its key propositions and very fact that Ripple seems to have lost this along the way, at least in our interpretation, our conviction of staying away from Ripple becomes stronger.

  • Media, in the pockets

This one will be a complete ‘hunch’ based claim rather than a documented proof based one.  Unless of course, you follow mainstream media.

‘Bitcoin is a villain until CBOE enters the market.’

‘Bitcoin is very volatile until Goldman Sachs and NASDAQ create their own versions of cryptocurrency exchanges.’

‘Bitcoin is used for illegal activities and is criminal’s currency until futures are announced’.

Bitcoin this and bitcoin that, we have heard so much news (aka FUD) in the mainstream.

What you will fail to find on any mainstream media is comparatively negativity about Ripple.

No media pundits asked Ripple, “You are not a blockchain company and what you offer is nothing more than a SaaS, then why are you pretending to be a crypto and who gave you the right to create money out of thin air?”.

If this so-called media was unbiased, why would they throw shit at the king of all cryptos which started a revolution while never mentioning much negative about a non-blockchain based cryptocurrency.

Think for yourself.

  • Practical: Keeping our biased sentiment aside, even the practical aspects of Ripple fail to garner our interest. Below are few of our views in this respect.
  •  Is XRP required?

Ripple and its non-blockchain based technology may actually help financial institutions  figure out a way to circumvent the hurdles of international money transfers.

Ripple’s extensive partnerships, however, do not translate to use of XRP (Ripple’s native currency).

Ripple Labs doesn’t need to use XRP in its three products: xRapid, xVia and xCurrent offerings.  In fact, its own CEO says “The Interledger protocol that we use, connects perfectly well to any blockchain and any asset, it doesn’t only work with XRP, it’s very open.”

Institutions are still free to use fiat or any other form of exchange of value. The use of Ripple by its own creators, Ripple Labs, is at its infancy and most public announcements allude to the fact that XRP can be used but is not required.

  • Adoption and penetration

For Ripple to succeed, in spite of its existing boasted partnerships, it will need to beat SWIFT that has over 11,000 existing banking relationships.

Why would an existing business that has been operational for decades watch passively while a newbie takes over its bread and butter?

Beats us.

Big financial institutions will not exhibit loyalty and if SWIFT (or other platform) gives them an actual blockchain technology-based support and offers more than what Ripple can, they will jump the ship in a heartbeat.

Some might say that this same argument can be made for everything that is introduced on the blockchain.  Not quite.  What other projects on blockchain have and Ripple doesn’t is: blockchain and loyal crypto followers.

Also, some businesses do not need a blockchain disruption.  For example:

A business like facebook can be completely eliminated by a blockchain based social system that promises privacy, security for their data and reward for user content.  On the other hand, a video streaming service like NetFlix may never be replaced by this technology due to what NetFlix offers in entertainment space.

We are still trying to find strong reasons as to why SWIFT will sit on the sidelines while their business comes under attack by Ripple, OR, what stops from big financial institutions with fractional lending on their side from creating their own blockchain, OR, using Ripple as a SaaS model while they continue to use Fiat?

In each of these scenarios, in spite of adoption of the technology offered by Ripple Labs, Ripple currency itself sees no value.

Thoughts are welcome.

  • Fiat friendly

21 Trillion is missing from the Department of Defense’s books.

Read that line again.

It is a Trillion with a T, not a Billion (Billion is also a massive big deal).  21 Trillion dollars of unaccounted adjustment.  Only made possible because of current fiat system.

If these records were on blockchain platform, even a private one (for security purposes), this could have been almost entirely impossible.

Every single dollar (or dollar equivalent) would have been brought to account.

When every single penny is accounted for and is open for public to audit, can you imagine having a 21 TRILLION dollars surprise?

Blockchain technology may not be a panacea but it is definitely a massive solution to avoid this kind of issue from cropping up and even when they do, an easy detection.

Now, if Ripple is facilitating existing fiat system without disrupting it, is it truly what we need?

21 Trillion dollars!!!  Honestly, do we need another technological solution that enables the current broken fiat system or do we need a blockchain revolutionary solution?

  • Crypto-technological: Most of the people that know the origin of Bitcoin may remember the very reason why Bitcoin came into existence. 2009 Crash of the financial market.   The need for revamping the existing financial systems came about from the despair of the financial crash. Bitcoin’s emergence sprung from the 2009 crash which was (and proven to be so) due to the greed of big financial institutions.

 They were the ones that actually benefited from the misery of millions of individuals that were victims of the financial crisis, in the form of bailouts post-crash.  Keeping these basic issues aside, below are few points why we think Ripple deserves no place in the crypto revolution.

 It’s not blockchain

Contrary to being listed on coinmarketcap and being a contestant in the cryptocurrency and blockchain space, Ripple is not a blockchain in traditional sense.

In our view, it is nothing but a distributed ledger information sharing platform that is offered as a SaaS to big financial institutions.  In other words, Ripple’s adoption makes existing broken and crooked financial system faster.

Ripple’s adoption makes existing broken and crooked financial system faster.

The above example about how a revamp of existing financial system is the need of the hour is not answered by Ripple’s offering.

  • It’s not innovative

A private shared ledger is no more innovative than a shared excel workbook.  Google drive does a better job in sharing information, if that was really the plague that haunts current financial system.

We all know, that is not the problem.  Problem is centralization, lack of transparency and too much control vested in few hands.

Ripple doesn’t change any of the existing issues. None.

What it does is remove the hurdle of ‘time and cost constraint’ for big players.  Not a big innovation in our view.

If you say that Ripple solves the problem of liquidity and instant transfers, you should learn about (a Pay Pal company now).  They offer instant transfers (even on a non-workday) for verified customers.  They operate within the realms of existing financial system and do much more than facilitating money transfers.

Why do we need the ‘cover’ of cryptocurrency for a system that is already being helped by a company like Xoom?

  • It’s not crypto

Ripple is not a crypto in true sense in our view because:

  • It is not private
  • It is not anonymous
  • It is not based on blockchain
  • It is not mineable
  • It is not TRULY limited
  • It is not controlled by public (or voting)
  • It is not required to use services on the Ripple’s platform

Although, it might sound like this is an anti-Ripple article, we assure you, it is not.  If you have legitimate reasons that can change the opinions expressed in this article, feel free to share them with us.  Given the infancy at which crypto space is at, we all can learn from each other.

  • It’s not decentralized

Ripple owns about 60% of its total supply.  This is anything but decentralization that crypto has emerged to be. We can go on and on about why decentralization is important for crypto space but intelligent patrons know better.

  • Why it may win?

A wild card scenario maybe SWIFT and Ripple partner to join forces with major financial institutions.  If that happens, there will be no stopping of Ripple.

Ripple may be adopted by world’s major banks and the XRP used as an actual means of exchanging/transfer of value across the borders.  This too will contribute to a major victory for Ripple.  Ripple has already shown the signs of being on the road to wide-spread adoption, more than most other projects on the crypto space.

Also remember, most of the world population (more than 97+%) is not invested in the crypto space and if Ripple can translate the benefits of blockchain without ever starting a blockchain and helping big financial institutions to offer the benefits of a blockchain enabled world through its distributed ledger framework, then it may actually wipe most of the crypto coin projects from the face of the crypto space.

Here are more reasons that might contribute to Ripple’s success.

  • Purported bitcoin contender

Many have speculated that Ripple with its lightning fast transactions and almost negligent transaction cost will soon take over and replace Bitcoin.

  • Superfast transactions

Ripple actually has one of the fastest transaction speeds.  Not the fastest but definitely in the fastest list.  However, we contend that since it is not a blockchain based currency, it doesn’t take a genius to understand why they might have fastest transaction speed.

  • Active marketing team and social presence

Just go to google or YouTube and search for Ripple.  It is likely that you will find inexhaustible number of articles and videos, respectively.

Whether this information is based on real value or perceived value because Ripple has made many individuals truly wealthy and thus has secured a loyal fan base, the sheer amount of social traction that Ripple has is enough to propel it to new heights.

  • Partnerships with financial institutions

We have stated this before but the partnerships with big names that Ripple has established is one of the reasons why Ripple captures lot of mainstream media’s attention.

Aspects like appearances on CNBC, 50+ Billion dollars at its disposal, capability to expand its team and connections and fact that Ripple is doing everything in its power to be the dominant player in the crypto space, who knows, it might even succeed in its mission.

Why it may lose?

If the financial institutions crumble under the weight of innovation of blockchain, cryptocurrencies and decentralization, then inevitably, Ripple that depends so heavily on the adoption by big financial institutions will go down with them.

Expect a major fight from these financial institutions that have been enjoying ripping people off with fees, oligarchical control over the financial health of the world and playing with the lives of ‘common men’ across the world.

Bank of America has already announced a digital coin of sorts.  If big financial institutions adopt to the changes and participate in this blockchain revolution (and succeed) then Ripple may play a part and succeed with them.  Even then SWIFT with its gigantic network is not going to let a new kid on the block destroy them.

A major collapse of current financial system model, a blow back from SWIFT, financial institutions adopting ACTUAL blockchain technologies or developing their own system, crypto-fans retaliation and the fact that there is not an actual use case for XRP itself in the Ripple ecosystem, any of these reasons in isolation or in combination can bring value of XRP crumbling to the ground.

OR at least that is the logical thing to happen.

However, we all know, crypto space is anything but logical.  So unfortunately, we along with others have to wait and see what happens of Ripple.

While writing this article, Goldman Sachs announced that they will start their own cryptocurrency backed by USD.  With its existing connections and sheer business volume, projects like these can prove to be a big blow to the projects like Ripple.

If Ripple fails, it will bring the whole crypto market, although temporarily, crumbling down.  This is another undesired outcome when a project like Ripple grows bigger than it should be.


You might say, what Ripple is trying to solve doesn’t actually need a blockchain technology and that all this rambling is in vain.  You may be right.  But we do ask you to show us a software company or for that matter any other company (other than financial institutions) that were able to ‘print’ money out of nowhere?   Show us a company that raised money from public with 60+% control on all of its assets and option to release a billion shares per month (at today’s value, about 680 million dollars) at its own whim?

If you operate in blockchain and crypto currency space, we have every right to expect you to be playing in the spirit of crypto space.

While the case can be made for any number of possible outcomes, we at CryptoTapas (and QRIP) are firm in our position, we will not invest in Ripple nor will we recommend it.  We might be utterly wrong at this position and that is ok.  As Buffet taught us “we win some, we lose some” and we would rather win with some truly world changing ideas, which we do not believe Ripple qualifies for, in our opinion.

CryptoTapas is an initiative of creators of QRIP group.  QRIP group is FREE to join.

Do your own research before investing. Crypto space is very volatile, don’t invest more than what you can afford to lose.  Opinion, not an advice.

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