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Prof. Mazieres exposed this issue with the consensus algorithm that Ripple employs over 3 years ago and they’ve done nothing:
THREE years ago. The SAME problems are still there. Ripple has made a quarter of a billion dollars in LIQUID cash since then. The RippleNet protocol is still in beta.
A small minority of ‘servers’ on their chain could impede the progress of everything.
Also, the process by which UNLs and servers are determined mean that one bad ‘trusted’ actor could compromise the entire ledger creation process indefinitely until otherwise discovered.
I broke this down like religion in a thorough Medium article: https://medium.com/@cryptomeds/ripple-review-an-actual-critical-analysis-of-the-company-and-its-token-xrp-796c18df7236
Other factors such as this one from Bloomberg have also set people off as well:
Here are some other interesting facts:
Ripple, a coin with a $100B+ market cap in December, did a whopping $20 million in sales of the actual coin. If we used real investment math on $XRP it’d be worth $100 million if we were being generous.
It honestly sounds close to a Ponzi Scheme in my opinion:
“If investors hustle up the price of $XRP enough, then one day it MIGHT become useful to someone!”
Many institutions that are testing the RippleNet are doing just that…TESTING it
It appears as though the wider market has become aware of this fact as well:
Even the CEO himself said that $XRP isn’t a cryptocurrency
Stats show that 99.9% (literally) of XRP wallets hold less than $100 in them. That accounts for 749,000/750,000 wallets in creation.
Many other indicators point to the idea that $XRP (Ripple’s Token) was created solely for the purposes of generating greater revenues for the rest of their business:
There’s zero transparency and the nodes are all run by large conglomerates or Ripple itself (which is the case in most instances).
$XRP JUST got over the lawsuit it had with Jed McCaleb (former partner) who used to be married with Mt. Gox https://t.co/t7GjJGUK0Y and now they’re in another nasty one with R3 that could cost them a substantial share of their holdings — https://www.fool.com/investing/2018/03/19/ripple-lawsuit-whats-at-stake-for-the-crypto-compa.aspx
Ripple has been selling the SAME EXACT quantity of $XRP to “institutional investors” for the last 9+ months while the price spiked over +800%.
As of February 12th, the network still had less than 75 validated nodes and over half of them are owned by the company itself.
Ripple as a company received $55 million from VCs + $180M from XRP tokens they liquidated down, totaling almost a quarter of a billion dollars, and RippleNet is still in its “beta” phase. Either the company is totally incompetent or they don’t have any serious plans for $XRP