- Ripple’s decentralization claim faces criticism over flawed reasoning and token control.
- Missing 32,570 XRP Ledger blocks raise concerns about Ripple’s transparency and intent.
- Trump’s XRP reserve decision fuels debate on its legitimacy over Bitcoin’s dominance.
Ripple’s decentralization claims have faced heavy criticism from crypto analysts, particularly Pierre Rochard, who argues that their reasoning is flawed. Ripple asserts that XRP is decentralized because users can switch to another cryptocurrency if they disagree with its structure.
This definition of decentralization has been widely criticized as setting an extremely low bar. By that logic, any large corporation, such as Apple, would also be considered decentralized.
Ripple’s claim has long fueled controversy, with critics pointing out issues related to its token distribution, missing ledger entries, and overall control over XRP’s supply. Recently, these concerns resurfaced with Donald Trump’s decision to include XRP in the newly announced U.S. Strategic Crypto Reserve.
Controversy Behind XRP’s Missing 32,000 Blocks
A long-standing issue surrounding Ripple’s transparency is the disappearance of 32,570 blocks from the early XRP Ledger (XRPL). The missing blocks date back to 2012 when the ledger was created by David Schwartz, Jed McCaleb, and Arthur Britto.
These early records were lost, raising concerns over whether Ripple’s founders intentionally manipulated the token’s initial allocation. Crypto analysts and Bitcoin advocates argue that without access to these transactions, it is impossible to verify the fairness of XRP’s early distribution.
Bitcoin advocate Bitcoin Dad has openly criticized Ripple Labs for controlling a significant portion of XRP’s supply. He pointed out that Ripple still holds over 44% of XRP, reinforcing concerns about centralization.
He questioned whether the missing blocks were a result of incompetence or deliberate concealment. Despite repeated assurances from Ripple’s CTO David Schwartz that the missing blocks were lost due to a technical bug, skeptics remain unconvinced.
Donald Trump’s Crypto Reserve Sparks Further Debate
The controversy surrounding XRP took a new turn with Donald Trump’s recent move to include the digital asset in the U.S. Strategic Crypto Reserve. The decision also led to fresh criticism.
Many Bitcoin maximalists and financial experts questioned why XRP was included in the reserve. Economist Peter Schiff voiced skepticism, asking what justification existed for an XRP reserve when Bitcoin is already established as the primary digital asset for such purposes.
Ripple’s Response and the Market’s Reaction
David Schwartz has repeatedly defended Ripple’s position. He claimed that the missing ledger blocks resulted from an unexpected server issue in 2013, making it impossible to retrieve them. According to Schwartz, Ripple never anticipated XRP Ledger would evolve into a long-term financial system, which is why they didn’t prioritize preserving all historical records.
Despite these explanations, doubts persist. The lack of verifiable data from XRP’s early days continues to cast a shadow over Ripple’s transparency. Moreover, the fact that Ripple still retains a large portion of XRP supply reinforces centralization concerns.
