XRP, the third largest cryptocurrency in the world in terms of market value, was produced directly by Ripple. Today, Ripple keeps tens of billions of XRPs in its own pool account and sells some of these XRPs every month.
Cryptocurrency followers are divided over whether XRP is a decentralized cryptocurrency. Some say that XRP is a decentralized cryptocurrency independent of Ripple, while others say that XRP is still largely ruled by Ripple.
The argument of many people who say that XRP is not decentralized and is actually managed by Ripple is actually based on Ripple’s pool account. Ripple bought 55 billion XRPs into the pool account years ago and locked them. During the period when the company started using this mechanism, it announced that “1 billion XRPs will be removed from the pool account every month for 55 months”:
“Over the next 55 months, 1 billion XRPs will be unlocked every month from the pool account. Thus, an upper limit is placed on the total amount of XRP that can be put into the circulation. The total number of XRPs circulating will probably be less than this. XRPs that have not been removed from the pool account will be transferred back to the pool account. ”
Ripple sells some of these XRPs from the pool account and gives some to financial institutions and banks. In this way, the company both generates income and partnerships with more companies. Ripple, which has unlocked 1 billion XRPs every month for years, has more than 49 billion XRPs in its pool account.
While Ripple claims to use these XRPs to grow the ecosystem, some people argue that Ripple can also use these XRPs to manipulate the market and keep XRP under control.
Marcus Treacher, one of Ripple’s executives, recently talked about this and argued that XRP was completely decentralized.
Responding to Ripple’s claims that he manipulated the price of XRP, Treacher emphasized that these claims were not true. According to Treacher, Ripple is currently trying to neither control XRP nor undermine XRP’s success:
“Ripple is currently one of the biggest investors of XRP, and that’s why it is in the company’s favor to make XRP successful. It wouldn’t be for the company to manipulate XRP or the XRP network. ”
According to Treacher’s comments, if Ripple is currently trying to manipulate XRP, it affects XRP negatively and this is at the expense of Ripple.
Although Treacher says that Ripple does not control XRP, there is no manipulation in the middle, is his argument sufficient to convince people who claim otherwise?