Skeptics: Ripple’s XRP is not a true cryptocurrency

The cryptocurrency community is known to be cliquey, for the lack of a better term. There are Bitcoin Maximalists and there are those who think Ethereum is the future.

Still, others see Ripple and XRP as the protocols that will bring the most change and carry the most value. However, there is a sizeable faction that thinks Ripple is not decentralized and should not be considered a “true cryptocurrency.”

A major concern that Bitcoin enthusiasts and fans of decentralization have is that Ripple controls the supply of XRP. Capital.com explains the gripe that cryptocurrency purists have with XRP.

They say “the Ripple company has control over who can actually process XRP transactions. This renders the Ripple network as a centralized and network, making XRP centralized crypto. This lack of decentralization causes much controversy about Ripple’s status within the crypto community.”

Another point of contention that Ripple detractors have is that the coins are mostly held by the creators.

“To this day, the company holds around 60% of the total amount of XRP.”

That number, according to Capital.com, has many in the space questioning the motives and the legitimacy of the company.

“Ripple boasts a vast array of institutional clients such as Nomura and Santander, but under further examination, it would seem that most companies are ‘partners’ as opposed to clients, who receive XRP as a reward. In short, Ripple is using its share of XRP to create the mirage that it has to pay customers.”

Ripple’s massive and supportive community has also been called into question. Many claim the “XRP Army” is composed of thousands of bots.

From its inception, Ripple has dealt with tough scrutiny from inside and outside the cryptocurrency industry. Aside from questions regarding decentralization, the entire space is also keeping their eye on the legal decisions that will be made regarding Ripple’s status as security.

Although purists will argue that XRP is not a “true” cryptocurrency, XRP can still be deployed as a useful tool for businesses or average citizens to send funds across international borders.