A crypto exchange that just listed XRP calls it centralized and regards it as something that is not a true digital currency. As per the report, Finland based CoinMotion exchange, which recently listed XRP on their roaster, has called out the token as been heavily centralized stating that it isn’t a real crypto. The exchange only listed the XRP token a day ago.
‘XRP Is Obviously Decentralized’ Garlinghouse Claims
The CEO and Ripple, Brad Garlinghouse, insists that XRP is “a truly decentralized network” but many others do not agree with this. One of these is Finland based CoinMotion exchange. The Finland exchange published a blog post (titled XRP is a Centralized Virtual Currency) hours after listing the XRP token on its platform.
The post highlights the opinion of CoinMotion’s operators that the XRP token isn’t a typical digital currency. They insist that it isn’t backed by a traditional Blockchain. In their view, it is heavily controlled by Ripple Labs.
This opinion is one that has been making rounds for a while now in crypto circles. After every few months, a new group or individual comes up to claim the “truth” that the XRP digital token is actually a centralized offering. However, there’s a difference this time. It is coming from a voice that has something to lose by making such an allegation. CoinMotion has nothing to gain by making the most of such a story about XRP. The fact that the publishing of the blog post coincides with the exchange listing XRP (following a huge demand from consumers in Finland), only shows how concerned they are about the token.
CoinMotion: Ripple Labs Has Control Over XRP’
The Finland based crypto exchange also claims that Ripple Labs holds control over XRP in the blog post. The Ripple network does not secure its transactions under a Blockchain, rather it uses a model called the HashTree (patented by Ripple Labs).
XRP (XRP) Price Today – XRP / USD
The blog post published by Coinmotion also touches on issues concerning the particulars of XRP’s supply statistics, going on to note that:
“XRP isn’t mined like the typical virtual currencies. All of the 100 billion Ripple tokens have been created already and Ripple plans to release only half of them to the markets while holding the other half. There are currently 39% of XRP tokens in the open market with another 61% held by Ripple Labs.”
According to CoinMotion, the fact that the control of XRP rests in the hands of the parent company (Ripple Labs) amounts to a monopoly. It is, as such, antithetical to the principles of crypto like Bitcoin (BTC).
CoinMotion: XRP Token Could Still Succeed
The blog post rounds off by insinuating that XRP could become a success despite the above-detailed points. Even if CoinMotion does not consider XRP to be a true crypto or an actual Blockchain solution, it qualifies as a fintech solution.
In January of the year 2019, Ripple Labs revealed that it was adding thirteen more financial institutions to RippleNet, which is going to take the total to more than 200. Right about the same period, the co-founder of the platform Jed McCaleb, who is now with Stellar, found time to take shots at digital currency competitors. The crypto executive alleged that Tron (TRX) is “just garbage.”