On Oct. 27, Ripple released its Q3 Markets Report stating that its holdings of XRP have dropped below 50% for the first time.
The company proudly stated that it is becoming more decentralized contrary to what critics have claimed. It said the ownership of XRP is not an indicator that Ripple controls XRP Ledger (XRPL).
“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. Ripple currently operates 4 out of 130+ validator nodes on the XRPL.”
However, the fact remains that a centralized company still holds and controls half of the token supply, which amounts to around 50 billion XRP. In the third quarter, it released 3 billion more XRP out of escrow.
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 disclosed that its total net sales of XRP for the period were down to $310 million from the $409 million it sold in the second quarter.
It added that these sales have been solely linked to its on-demand liquidity (ODL) transactions which have been increasing.
ODL is one of Ripple’s primary products, which facilitates cross-border transfers for financial institutions. The company highlighted its expansion with a Travelex partnership which will enable ODL in Brazil to allow transactions between Brazil and Mexico.
Other ODL partnerships included Singapore-based institutional digital payment solution provider FOMO Pay and Philippine remittance service provider iRemit.
“Ripple has continued to sell XRP only in connection with ODL transactions, and ODL volumes have ramped up as Ripple’s ODL business expanded globally.”
Ripple also posted an update on its drawn-out battle with the Securities and Exchange Commission (SEC). It claimed a victory when the regulator finically released crucial documents relating to a speech by former SEC division director Bill Hinman.
“In terms of next steps, in November, the SEC and Ripple will file reply briefs, and, from there, await the Judge’s decision on the motions,” it added.
Earlier this month, Ripple announced the testing of an Ethereum-compatible side chain for XRPL.|a29def6ac5082dab5c8fdd36daabc413|
Ripple’s native token has gained 4% on the day to trade close to $0.5 at the time of writing, according to CoinGecko.
XRP prices jumped in mid-September, but it has been relatively flat since then, hovering around current levels. XRP is currently down 86% from its January 2018 all-time high of $3.40.
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