Is Ripple a Scam and a Fraud?
Some are saying that Ripple is a scam. Apparently, various activities of Ripple and its business model to increase its value have changed it into a first-row defendant to be the scam. The fact is...
Some are saying that Ripple is a scam. Apparently, various activities of Ripple and its business model to increase its value have changed it into a first-row defendant to be the scam. The fact is that the business model of Ripple is ambiguous and has attempted so much to hide its existing holes.
The next part investigates the claims assuming Ripple a scam and a fraud.
A Large Number of Customers, Is it Real?
One of the most basic signs for being scam the Ripple is its numerous customers. What ripple introduces as its customer is indeed a partner; that is, the companies that Ripple pays some amount of money to cooperate with them. Partners attraction program started on October 13, 2017. Ripple gives rewards and financial advantages to the institutions and companies which begin working as the firsts in currency and commercial payments market; however, the question is that from where does the Ripple fund these awards and financial advantages? Financial support of Ripple is earned by XRP holding with $300 million XRPs; in other words, Ripple uses its XRP token shares to create this delusion in the customers that it will give them reward and advantage. Ripple doesn’t have many customers, but it enjoys numerous partners benefited from cooperation with it; as a result, Ripple’s advertising maneuvers about its customers is a futile claim. Moreover, many experts cannot accurately investigate and interpret the business model of Ripple. It seems that this platform suitably features the primary characteristics of a fraudulent act called scam.
What Are the Problems of Ripple Liquidity?
Ripple announced that its purpose for giving advantages to its customers was to decrease liquidity charges. On the other hand, using Ripple as an intermediary currency, financial institutions and banks should save sufficient amounts of XRP in their stores to answer the requests of transactions done there. However, the point is that Ripple’s fluctuations are much more than being able to manage the store to fund its transactions. This shows that the claim of being a scam is to some extent rational about Ripple and it deserves more survey. The volatilities are highly runaway, and there is no certainty about their stability. Therefore, controlling them is a little difficult.
It is not just liquidity and financial affairs of Ripple which come about doubt and suspicion, Ripple suffers from some security problems too. Pay attention! If Ripple finishes its activities tomorrow, XRP ledger will continue; since it is an open-source and decentralized technology. If you buy XRP, you will not have any ownership of Ripple. Frauds and ambiguity of Ripple status is in a way that it caused objection by the partners such as Bitcoin and they are seeking for an opportunity to encounter this rival. These days, critical and questioning looks which are to discover the truth, are monitoring it.