A growing rift is forming within the crypto community over Ripple's massive XRP reserves. Bitwise CEO Hunter Horsley suggests that the company could evolve into a full-fledged 'XRP treasury entity' within a year.
Ripple Controls 42 Billion XRP — A Centralisation Concern?
Horsley shared on social media that Ripple currently has direct access to 4.56 billion XRP, with another 37 billion locked in smart contracts. Combined, these holdings account for roughly 42% of the total XRP supply, which raises alarms among decentralisation advocates. While some market voices view this concentration as a threat to XRP’s distributed nature, others argue that Ripple’s holdings are justified due to ongoing litigation with the SEC and investments in blockchain infrastructure.
Industry Comparisons to MicroStrategy
The idea of Ripple transitioning into an XRP tenant treasury is gaining traction. Crypto investor Big Mykel pointed out that Ripple is 'already the MicroStrategy of XRP,' emphasizing its role as a long-term holder and allocator of the asset. Companies like Trident Digital Tech and VivoPower International are also increasing their XRP reserves, indicating a broader institutional shift towards using XRP as a long-term store of value.
The Case for Utility-Backed Holdings
Not all analysts are sounding alarms. Crypto commentator Jungle Inc. believes that Ripple’s XRP stockpile is essential, not threatening. He argues that the funds support initiatives like EVM-compatible sidechains and international bank integrations. According to him, the reserves signify strategic stability rather than monopolistic power.
Ripple's next steps may greatly influence how XRP is perceived in the market. The crypto community is watchfully awaiting developments in the coming months.
