Bitcoin News Is Not For Sale

Please don’t skip this message — it only takes a few minutes to read. Sorry to bother you, but time is running out.

Bitcoin is freedom. If you think independent media that is bitcoin-only is important, if you believe information and education about bitcoin matters for adoption, and if you have gained something from our work, we would be grateful if you could chip in $21. 

Join the 2% of our readers who occasionally make a donation. If everyone reading this donated just $21, we would reach our target in a couple of hours. $21 won’t break you, we hope.

To cover the cost for our servers, editors, writers, and thumbnail artists we rely on our readers’ generous support. 

How You can chip in:

  • Send a Sats as a tip to a writer. Each and every one of our writers has an active tipping widget.

  • Join our campaign on Awesome perks are waiting for you such as the Bukele Blend Coffee.

Your support ensures that Bitcoin News stays independent with a laser focus on Bitcoin and only Bitcoin.

Funding Progress

R3 Versus Ripple Lawsuits Reveals Centralized Nature of XRP Supply

written by

R3 Versus Ripple Lawsuits Reveals Centralized Nature of XRP Supply

Support free journalists: > send a tip

Ripple Labs and XRP II LLC have reached a settlement with the R3 blockchain consortium after a drawn-out legal battle over the sale of 5 billion Ripple tokens (XRP) at USD 0.0085 each. The fact that such a large amount of XRP was offered to R3 at such a massive discount reveals the centralized nature of the company.

Apparently, Ripple Labs and XRP II entered into an agreement with R3 to sell up to XRP 5 billion any time before the end of 2019. R3 leads 200 blockchain and distributed ledger technology research firms and companies, and particularly explores the use of such technology for finance and commerce. XRP is a cryptocurrency for cross-border payments, which makes it a good fit for finance and commerce platforms.

Ripple had entered into this agreement to sell XRP 5 billion for only USD 42.5 million when price was closer to that level. Cryptocurrency prices rallied massively, and by September 2017 the deal no longer made sense. During the peak of the crypto rally, the XRP were worth USD 19 billion, and even now after a massive price crash during 2018 they are still worth USD 1.3 billion.

It would be catastrophic for the XRP market for this deal to go through as agreed, so it makes sense that Ripple Labs and XRP II tried to get rid of the deal. There are just under 40 billion XRP in circulation, and the injection of 5 billion into circulation could lead to a major price crash. It is unknown if the lawsuit settlement involved a large amount of cut-rate XRP entering circulation.

This situation highlights the centralized nature of XRP. While there are nearly 40 billion XRP in circulation, there are over 60 billion XRP under the control of Ripple Labs and the Ripple Foundation that are not yet in circulation. This is quite dangerous for investors, since these centralized Ripple entities could legally dump tokens at any time and suck all the money out of the market. This lawsuit is a case of how Ripple can sell billions of its tokens below market rate, which is damaging to its market.

While XRP has consistently been one of the top cryptos, currently #3 with a market cap of USD 10.6 billion, many crypto experts and enthusiasts don’t consider it to be a true crypto due to its lack of mining and centralization of coin supply.


Follow on Twitter: @bitcoinnewscom

Telegram Alerts from

Want to advertise or get published on – View our Media Kit PDF here.

Image Courtesy: Pixabay

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


Read More Bitcoin News


Join our Newsletter


Latest on Bitcoin News

Video of the Week

Join our Newsletter