Investing.com – recently released its third quarter report and it revealed something startling. In the past, the company was repeatedly criticized that the blockchain developed was too centralized. This would allow in particular to have full control over the XRP in circulation.
However, the report today shows that Ripple no longer even has half of the XRP available. This is because the business model is continuously developed, resulting in a reduction of the initial 55 billion XRP, which was transferred to a fiduciary account in 2017. Since that date, XRP is used every month from this account to advance the On-Demand Liquidity (ODL) model.
The fact that Ripple now controls less than 50% of XRP was called a milestone by CEO Brad Garlinghouse. As for statements about the centralization of the system, it was announced that Ripple itself only manages four of the more than 130 XRP Ledger (XRPL) validators worldwide.
“For the first time, the amount of XRP held in Ripple’s various wallets is less than 50 billion, or 50% of the total circulating supply. Critics have taken the company’s ownership of XRP as an indicator that the XRP ledger is controlled by Ripple, but it is not. The XRP ledger (XRPL) uses the Federated Byzantine Consensus to validate transactions, add new features and secure the network. This means that each validating node receives one vote, regardless of how much XRP it owns. Ripple currently operates 4 of XRPL’s more than 130 validating nodes.”
In the third quarter, Ripple sold $310.68 million worth of XRP, down from $408.90 million in the previous quarter. The sales accounted for less than 0.5 percent of XRP’s global trading volume.
Ripple price technical benchmarks
Ripple is currently losing ground at one at $0.4606 -2.28 percent, as the weekly gain stands at 4.06 percent.
After forming a daily high of $0.4818 yesterday, price quickly retreated and closed the day below the 38.2 percent Fibo retracement of $0.4639. The door was thus opened for an extension of the downside correction. The focus is now on the October 25th low at $0.4437 and the 50 percent Fibo retracement at $0.4352.
Only if the bulls manage to reclaim the 38.2 percent Fibo retracement sustainably will a test of yesterday’s high and an extension of the upside move towards the 23.6 percent Fibo retracement for cent of $0.4994 will be possible.
By Marco Oehrl