The holdings of Ripple Labs drop below the 50% mark.
The representatives from Ripple Labs have disclosed that this is the first time that the company's holdings for XRP have dropped below the 50% threshold.
In the past, numerous individuals have persisted in their criticism of Ripple Labs for keeping such a significant quantity of XRP. They never stopped expressing their worries about the fact that Ripple Labs constantly held more than half of the XRP.
Despite the fact that it was a decentralized cryptocurrency, many people believed that the presence of more than 50% XRP gave it the appearance of a centralized protocol.
Many people believe that Ripple Labs exercises centralized authority over the XRP Ledger (XRPL), which they think is controlled by Ripple Labs.
The report for the third quarter was presented by Ripple Labs's management on October 27th, the day after the company's quarterly meeting. Ripple Labs went on to contradict the accusations made regarding its XRP holdings in the report that it published.
The company reported that both its holdings of XRP and the value of the cryptocurrency are continuing to decrease. The company disclosed that its XRP holdings are now below the 50% threshold, which indicates that its XRP holdings make up less than half of the total circulating XRP.
Argument put up by the Critics
Market detractors believe that the fact that Ripple Labs controls more than 50 percent of the XRP supply indicates that the company has full authority over the XRP ledger.
Ripple Labs, on the other hand, has maintained that these assertions and criticisms are unfounded, and they do so by offering reasons for the allegations that they consider to be untrue.
Ripple's teams have revealed that the Federated Byzantine Consensus is the consensus algorithm that powers the XRP Ledger. The particular consensus, as stated by the group, is implemented in the mechanism that is utilized to validate the transactions.
In addition to the aforementioned benefits, the consensus also contributes to the overall security of the network as well as the installation of new features. This misunderstanding was cleared up by the team, who explained that each validator node had a total of one vote available to them.
No of how many XRPs they have in their possession, they will only receive one validator node. During their explanation of the matter, the XRP officials stated that anything the detractors have asserted about the scenario is not true in any way.
The company has validated the fact that they only hold four of the more than 130 validator nodes for the XRP Ledger.
a report prepared by Ripple
Ripple said in its earnings report for the third quarter that the total value of the net sales of XRP that the company experienced during the period was $310.68 million.
When compared to the figure for the second quarter, which was $408.9 million, this number is over $100 million lower. The reason for this is that net sales were higher during the second quarter.
After the data was made public, the price of XRP on trading platforms experienced a drop of 2.4%. As this article is being written, the current market price of XRP is $0.46.
