For the first time, Ripple’s XRP holdings are below 50% of the total token supply, according to a new report.
Ripple has been criticized for owning a large amount of XRP, which some believe gives the group too much control over the decentralized public blockchain XRP Ledger (XRPL).
In Ripple’s third-quarter report, the group countered the criticism, while noting that its XRP holdings have now fallen below 50 billion tokens or 50% of the total outstanding supply.
“For the first time, the amount of XRP held in Ripple’s various wallets is below 50 billion, or 50% of the total circulating supply. Critics point out that the company’s XRP ownership indicates that the XRP Ledger is controlled by Ripple. This is not true. XRP Ledger (XRPL) uses federated Byzantine consensus to validate transactions, add new features, and secure the network, meaning every validator gets a vote no matter how much XRP they own. Ripple currently runs 130+ validators on XRPL 4.”
The report also revealed that Ripple’s net sales of XRP fell from $408.9 million in the previous quarter to $310.6 million in the third quarter.
“Ripple continues to sell XRP only in connection with ODL (On-Demand Liquidity) transactions, which are increasing as Ripple’s ODL business expands globally.”
Ripple provided an update on its ongoing litigation with the U.S. Securities and Exchange Commission (SEC) in the report.
The SEC sued Ripple in late 2020 for offering XRP as an unregistered security.
Ripple also criticized the SEC, referring to a 2018 speech by former SEC director William Hinman when he said that ether (ETH), the second-largest crypto asset by market capitalization, is not a security. Ripple recently scored a legal victory over the filing of Hinman-related emails.
“Since Hinman’s market-moving speech, the SEC has continued to deliberately create ambiguity rather than provide clear guidance and use that ambiguity to pursue enforcement action to stifle cryptocurrency innovation in the United States.
In the next steps, the SEC and Ripple will file a response brief in November and from there await the judge’s decision on the motion. Ripple will continue to fight the case so that the industry can gain the much-needed regulatory clarity to ensure that cryptocurrency innovation can flourish in the United States. “
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According to a quarterly report, Ripple’s XRP holdings fell below 50% of the outstanding supply for the first time.
Source of information: Compiled from DAILYHODL by 0x Information.The copyright belongs to the author, Daily Hodl Staff, and may not be reproduced without permission