In a Q3 report published on October 27, Ripple once again disproved previous criticism from those who raised concerns about the company’s significant ownership of XRP tokens, arguing that it gives the company centralized control over its XRP Ledger (XRPL).
Ripple Lab’s XRP token holdings have fallen below 50% of the total circulating supply for the first time in the company’s history.
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 in the report that its total net sales (sales minus purchases) of XRP for the third quarter were $310.68 million, down from $408.9 million in the previous quarter.
Ripple has continued to sell XRP only in connection with ODL transactions, and ODL volumes have ramped up as Ripple’s ODL [On-Demand Liquidity] business expanded globally
the report further notes.
The company clarified that the XRP Ledger consensus mechanism ensures that each validator node has only one vote, regardless of the amount of XRP held. Currently, Ripple operates 4 out of 130+ validator nodes on the XRPL.
Ripple CEO Brad Garlinghouse stated on Twitter:
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
Commenting on the update on the legal dispute with the Securities and Exchange Commission (SEC), Ripple said that “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,”
This month, the SEC reversed its position on protecting the Hinman documents under the attorney-client privilege. After failing to persuade the courts, the SEC is now requesting redactions for specific documents.
Despite the SEC’s best efforts, William Hinman remains a central figure in the SEC v Ripple case. William Hinman, Division of Corporation Finance, stated in a famous 2018 speech that Bitcoin (BTC) and Ethereum (ETH) are not securities.
