ARMY: XRP's Cult-Like Community

Introduction

Over the last week, the price of XRP surged by 30%. Occurring alongside price gains in cryptocurrencies such as Bitcoin and Ethereum, XRP's performance is indicative of an increasingly crypto-friendly regulatory and monetary climate. President Trump has urged the Federal Reserve to rapidly cut interest rates, which may weaken the U.S. dollar and the appeal of traditional investments. These potential outcomes, in conjunction with upcoming pro-cryptocurrency legislation, make cryptocurrencies attractive as alternative stores of value. 

To many, however, XRP's popularity and recent increases in price are somewhat puzzling. Technology company Ripple first launched the token in 2012 in hopes to fundamentally transform international baking by offering faster and cheaper cross-border payments for banks. The company’s goal is still out of reach, leading many to make fun of the token and its supporters, often referred to as the "XRP ARMY." Still, the members of the XRP ARMY remain fiercely loyal and faithful in the token's world-changing potential.

The XRP ARMY's Belief System: a No-Fail Mission

The most ambitious and optimistic members of the XRP ARMY predict total XRP adoption by central banks, meaning XRP will be used to move all global liquidity, with the token's total volume reaching $1 quadrillion. This end result is contingent on a number of key prerequisites, including mass institutional adoption of any cryptocurrency and XRP being employed as a bridge currency globally. For XRP to underpin all global transaction systems, each coin would need to be worth thousands given XRP's capped supply. 

At present, most analysts find themselves unable to follow the above line of reasoning due to a lack of concrete supporting evidence. For instance, RippleNet, Ripple's global payments network which employs XRP, exists to replace traditional payment networks such as SWIFT by offering quicker and cheaper and quicker transactions. However, in response to RippleNet, SWIFT launched the Global Payment Innovation Initiative to reduce delays and hidden fees associated with its transactions. While these changes align with many of Ripple's wishes for the future of global payments, they do not signal a shift towards XRP in banking and so may end in the XRP ARMY waving a white flag.

Ripple has also encountered significant regulatory and legal challenges since its inception. Most notably, the company was charged by the SEC for violating investor protection laws in 2020. When the suit was dropped last year, Ripple's legal chief Stuart Alderoty stated the company had spent over $100 million defending itself against the SEC. A semi-victory at best, this news energized the XRP ARMY. 

For this reason and many others, XRP and its ARMY are often ridiculed in online spaces and considered "naive" or "cult-like." Critics argue any XRP upside would rely on highly optimistic and unproven scenarios. Still, the XRP ARMY remains bullish. Some even argue that XRP's ability to withstand lawsuits and mockery in online spaces means the token will outlast hype cycles as banking infrastructure and partnerships are developed quietly. Besides, in the world of cryptocurrency, attention is value. Even negative attention can drive interest and speculation, and XRP is in no lack of negative attention online. 

One positive indicator for the future of Ripple (and XRP) is SBI Ripple Asia, Ripple's joint business venture with SBI Holdings, a major Japanese financial services company. Experts project that 80% of Japanese banks will offer XRP in their international payment systems by the end of this year, which could pave the way for other countries to follow suit.  

Conclusion

Evidently, the future of XRP remains uncertain, as its success depends on its adoption in global financial systems. If Ripple achieves its vision, XRP would revolutionize international payments and challenge traditional financial intermediaries in an unprecedented manner. Until then, the XRP ARMY will likely remain the subject of online mockery.