Ripple Labs has recently provided an update in regard to its holdings for XRP. The firm has reported that its earnings have dropped lower than 50% compared to the overall XRP in circulation.
Ripple Labs Holdings Fall Below 50%
The officials at Ripple Labs have revealed that this is for the first time that their holdings for XRP have fallen below 50%.
In the past, many have continued criticizing Ripple Labs for holding such a large number of XRP. They kept sharing their concerns that Ripple Labs always held more than 50% XRP.
Many claimed that despite being a decentralized crypto, having more than 50% XRP made it look like a centralized protocol.
Many have argued that Ripple Labs has control over the XRP Ledger (XRPL) in a centralized manner.
It was on October 27 when the officials at Ripple Labs shared the report for the third quarter. In the report, Ripple Labs went on to refute the claims about its XRP holdings.
The firm claimed that its holdings in XRP continue to fall and it continues to decline. The firm revealed that its XRP holdings have fallen below 50%, which suggests its XRP holdings are less than half the circulating XRP.
Claim by The Critics
According to market critics, Ripple Labs holding more than 50% XRP means that the firm itself holds control over the XRP Ledger.
However, Ripple Labs has continued denying such claims and criticism by providing explanations for the allegations that they deem to be false.
The Ripple teams have explained that the Federated Byzantine Consensus is used by the XRP Ledger. According to the team, the particular consensus is used for the validation process of the transactions.
In addition to the above, the consensus also helps make the network securer and adds new features. The team clarified this misconception, revealing that only one vote is granted to every validator node.
They get only one validator node no matter how many XRPs they hold. While explaining the situation, the XRP officials claimed that whatever the critics have claimed is not true at all.
The firm has confirmed that out of more than 130 validator nodes for the XRP Ledger, they only own 4 of them.
Report by Ripple
In the Q3 earnings report, Ripple reported that the XRP net sales they recorded in the third quarter were worth $310.68 million.
The figure is almost $100 million less compared to the second quarter because, in Q2, the net sales were worth $408.9 million.
Following the data release, the trading price of XRP has recorded a 2.4% dip. At the time of writing, XRP’s trading price is worth $0.46.