Ripple Obtains BBB Rating After Accusations Of Being Relatively Centralized
Ripple was doing everything perfectly in the last weeks. The community was very enthusiastic and the price was showing a positive trend. However, the rating agency Token Insight cut this happiness calling Ripple a centralized network and giving it a BBB rating.
Token Insight is a rating agency that describes itself as a platform that offers research and analysis about the cryptocurrency market. The company wrote that Ripple relies on centralized institutions and a token distribution that is currently centralized.
Ripple is building a network of banks and other financial institutions (including central banks) that are working together in order to improve the current payment industry. Banks and payment providers are able to use XRP in order to reduce costs even further and also increase their liquidity.
Another issue that is important to mark as well is that Ripple owns over 55 billion XRP tokens when at the moment there are less than 40 billion XRP tokens available in the market. Although the company has a selling limit of 1 billion tokens per month, Ripple Labs can use these coins as they consider, for example, to incentivise some institutions.
According to the company, Ripple is being decentralized more and more. The company has a decentralization strategy that is active since 2012. The second step of this plan is already taking place.
Another important company known as Weiss Ratings has also been revealing ratings for different virtual currencies in the market. Back on September 17, Weiss Ratings wrote a tweet in which it said that XRP, among other virtual currencies, was looking promising for the future.
XRP has received by Weiss Cryptocurrency Ratings a B- mark. One of the positive aspects of this virtual currency and network is that it has been adopted by several companies all over the world. Ripple has more than 100 different partners and it continues to work with other companies all over the world.
At the moment of writing, XRP is the third most important virtual currency in the market with a market capitalization of $19.66 billion dollars. At the same time, each XRP coin can be bought for $0.49 dollars. In the last 24 hours, XRP has experienced an increase of almost 4%.
Ripple has also been trying to separate itself from the XRP tokens. The U.S. Securities and Exchange Commission (SEC) has said that Bitcoin and Ethereum are not considered securities. However, it did not mention anything about XRP. Ripple wants to avoid being linked with XRP and they have decided to carry out different measures for crypto enthusiasts to separate the company and the virtual currency.