He further averred that the digital currency XRP is centralized, due to the influence of Ripple, the US-based blockchain tech, on the cryptocurrency.
Is XRP Really Closely Held, Could that Be a Problem?
As reported by Herald Sheets, the founder of Morgan Creek Capital Management, Mark Yusko, elaborated on the reasons why XRP is not included in the company’s Index Fund. He mentioned that XRP is “too closely held”, which makes it seemingly centralized.
The former chief market strategist of Ripple, Cory Johnson, had once claimed that XRP was discovered and not created by Ripple Labs. This also is not enough to disprove the centralization of the digital token, owing to the large control of Ripple and some set of individuals.
It’s learned that relatively 85% of XRP’s total supply is held by Whales, which is another point to prove that the digital currency is “too closely held”.
It’s also said that Chris Larsen, the former CEO of Ripple, who was recently named as the second richest personality in the crypto ecosystem, has 5.19 billion XRP in his possession.
Ripple Keeps Facing Accusation of Initiating the Lethargic Price Growth of XRP
Ripple is believed to hold 60% of XRP in circulation. This alone has attracted tons of criticisms from crypto enthusiasts and XRP community members at times.
Ripple is continuously accused of initiating the lethargic and dependent growth of XRP price in the market, due to its continuous sales of the digital token. And CEO Brad Garlinghouse had once pointed out that the Fintech wouldn’t be profitable without its scheduled sales of XRP.
He said, “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.” He, however, claimed that these sales are not meant to manipulate XRP price.