When it comes to cryptocurrency, one of the most common debates is whether XRP should be classified as a coin or a token. The confusion arises because XRP has unique characteristics compared to traditional cryptocurrencies like Bitcoin or Ethereum. Let’s break it down clearly so you understand what XRP really is today.
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Coin vs Token: What’s the Difference?
Before we decide where XRP belongs, it’s important to understand the difference:
- Coin: A coin usually operates on its own blockchain and is primarily used as a currency or store of value. Examples include Bitcoin (BTC) and Litecoin (LTC).
- Token: A token is built on top of another blockchain, often representing an asset, utility, or project use case. Examples include most ERC-20 tokens that run on Ethereum.
XRP and the XRP Ledger
XRP runs on its own blockchain called the XRP Ledger (XRPL). Unlike tokens that depend on another chain, XRP has its own decentralized ledger and consensus mechanism. This means it doesn’t rely on Ethereum or Bitcoin to function.
Because of this, XRP is technically a coin, not a token. It has its native blockchain and can be used directly for transactions.
Why Do People Still Call XRP a Token?
Some people mistakenly call XRP a token because:
- It is heavily used for cross-border payments and utility rather than just as a currency.
- The U.S. Securities and Exchange Commission (SEC) has historically referred to XRP as a potential security token during its lawsuit against Ripple.
However, from a blockchain technology perspective, XRP is a coin since it is native to its own ledger.
Is XRP a Coin or a Token Today?
✅ Today, XRP is officially considered a coin.
- It operates on the XRP Ledger, its own blockchain.
- It has a real-world utility in speeding up global money transfers.
- It is used as a digital currency to provide liquidity between fiat currencies.
So while regulatory bodies may debate its classification as a “security” or not, in terms of blockchain design, XRP is a coin.
Final Thoughts
If you’ve been wondering, “Is XRP a coin or token today?” the clear answer is: XRP is a coin. It has its own blockchain (XRPL) and functions as a digital currency. The confusion mainly comes from regulatory discussions, but in the crypto world, XRP belongs in the coin category.