For the first time in the history of the company, the amount of XRP tokens held by Ripple Lab has fallen below 50% of the entire circulating quantity.
Some have questioned Ripple’s disproportionately substantial holding of XRP coins in the past, claiming that this provides the business consolidated control over its XRP Ledger (XRPL).
The firm responded to that complaint once more in a Q3 report released on October 27 while also pointing out that its XRP holdings continue to slip below 50 billion tokens or 50% of the total supply. The company’s ownership of XRP has been criticized for suggesting that the firm controls the XRP Ledger, although this is untrue, according to Ripple. Further adding,
“The XRP Ledger (XRPL) uses Federated Byzantine Consensus to validate transactions, add new features, and secure the network, which means that each validator node gets one vote regardless of how much XRP they own.”
The company continued to state that at the moment, 4 out of 130+ validator nodes on the XRPL are operated by them.
Brad Garlinghouse, Ripple’s CEO, tweeted,
“Below 50% – a huge milestone! 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.”
According to the report, Ripple’s total net sales of XRP for the third quarter fell to $310.68 million from $408.9 million in the second quarter.
The company has continued to sell XRP exclusively in connection with ODL transactions, and ODL volumes have increased as the firm’s ODL [On-Demand Liquidity] business has grown internationally, according to the study.
One of the company’s main commercial products is its cross-border payments service, ODL, which it said it continued to develop in Q3 through a relationship with FX provider Travelex to ease trade between Brazil and Mexico.
Ripple Vs SEC Update
After winning a significant legal battle with the SEC earlier this month over the elusive William Hinman documents, Ripple also remarked on its protracted legal battle with the SEC.
The disputed documents are related to a speech by Hinman, a former SEC division director, in which he portrays the regulatory status of Bitcoin and Ethereum in ways that would support Ripple’s position and refute the SEC’s claims.
However, at the time of writing, XRP was priced at $0.461250 and had plunged by 3% over the last 24 hours.