Ripple Now Holds Less Than Half Of Total XRP Supply• October 28, 2022 5:12 pm • Comments
In a recently published Q3 report that was released by Ripple, the company indicated that it now holds less than half of the total supply of XRP for the first time ever.
This is considered a major milestone as it helps reinforce the fact that XRP is really a utility token and not a security as the SEC claims.
With the company holding a minority stake of the token, it also makes the XRP ecosystem decentralized which may continue to make the asset more attractive for investors.
Additionally, the Ripple has revealed that it only operates four out of the 130 validator nodes on the XRP ledger which further disproves any accusations that XRP is centralized.
In the latest XRP Markets report, we discuss Ripple’s XRP holdings (now <50% of total supply), the state of global crypto regulation 🌎, macroeconomic moves and On-Demand Liquidity continued domination. 👇 https://t.co/sKSN5g9I5C
— Ripple (@Ripple) October 27, 2022
Ripple CEO Brad Garlinghouse described this event as a “huge milestone” for the company, adding that it is clear that XRP has “real utility.”
The XRP cryptocurrency has been routinely criticized because of its alleged centralization. This criticism stemmed from the fact that Ripple controlled the majority of the token’s supply.
In mid-December, Ripple locked 55 billion XRP (the majority of its supply) in a series of escrow wallets, pledging to release a billion tokens per month in order to ensure price stability.
In its report, the company claims that it operates only four out of the 130 existing validator nodes on the XRPL Ledger, rejecting centralization accusations.
The company has also sold a large supply of XRP in the past which it had done in order to ensure price stability.
So far, Ripple had sold around $408 million worth of XRP in the second quarter and an additional $310 million in the third quarter.
This is done in order to support Ripple’s On-Demand Liquidity solution that many financial institutions around the world are utilizing.
Essentially, the ODL solution utilizes XRP in order to be able to do transactions between two fiat currencies in real-time.
The total amount of sales from Ripple represents less than 1% of the total XRP volume globally which is insignificant.
Ripple Labs’ XRP holdings have dipped below 50% or 50 billion of the total supply for the first time, with the firm reiterating that it doesn’t have centralized control of the XRP Ledger. https://t.co/CzQzWAsBGH
— Cointelegraph (@Cointelegraph) October 28, 2022
The company clarified that the XRP Ledger consensus mechanism ensures that irrespective of the amount of XRP held, each validator node only had one vote. It is worth noting that Ripple runs only 4 out of the over 130 XRP validators.
Commenting on the development, Ripple chief Brad Garlinghouse described the feat as a significant milestone in its ten-year history. Moreover, according to Garlinghouse, it is a testament to the growing utility of the XRP token.
“Below 50% – a huge milestone!” Garlinghouse wrote.
“For 10 years, Ripple has focused on using XRP & the XRPL within our products for its speed, security and scalability for movement of value. As more customers use XRP in their payments flows, it’s clear there is real utility here.”
— XRP the Standard Productions (@XRP_Productions) October 27, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.