Ripple Labs has often received criticism from investors about controlling the majority stakes in the nation. The company has been weighed down by a massive lawsuit insinuated by the Securities and Exchange Commission of the USA.
However, in an attempt to distance itself from the XRP token to prevent loss of goodwill, Ripple has made XRPLedger, the main company behind XRP tokens.
It is worth noting that SEC lawyers are suing Ripple Labs for dealing in illegal securities in the form of XRP tokens. Thus far, the case has not been concluded.
Amidst the chaos and clash, many cryptocurrency investors have posed the question that despite XRPLedger’s formation, RippleLabs still controls the XRP token on account of its massive stakes in the tokens.
XRPLedger as a Truly Decentralized Enterprise
The word decentralized has been used liberally by many cryptocurrency organizations. However, in reality, more cryptocurrency organizations that are backed by corporations are only partially decentralized at best.
The same is the case with XRPLedger and its parent company Ripple Labs. Ripple Labs has thus far owned the majority of a total supply of XRP tokens.
It means that rather than the XRP community deciding the market valuation, Ripple holds strong power over XRP tokens and can control its prices at its discretion.
However, Ripple has recently reported that its XRP reserves have dropped to less than 50% of the total XRP token supply. The recent change is seen as a welcome transition towards becoming decentralized as one inch closer to betterment.
The main reason that many people have taken a keen interest in XRP tokens is that they can set a precedent for the future of legislative clarity for the cryptocurrency community at large.
However, at this point, it seems that the decision of SEC, either way, is only going to make a difference for the XRP token and community alone.
SEC lawyers have clarified their position towards other cryptocurrencies, such as Bitcoin and Ethereum, to not qualify as disguised digital securities.
The cryptocurrency market has gained more stability after weathering the recession and financial challenges. Meanwhile, it seems that Ripple Labs is on a winning streak after gaining access to the emails of SEC officials and the public speech clip of former SEC official William Hinman.