While all the cryptocurrencies have been dropping in value over the past few weeks, Ripple Labs XRP has done even worse. The trend of Ripple losing value more relative to Bitcoin int he long term seems to be continuing.
Since December Ripple (XRP) has lost 69% of its value relative to Bitcoin (BTC), and since the beginning of 2018 it has managed to lose 88% of its value relative to Bitcoin (BTC). It’s highly likely this is due to Ripples centralized supply of XRP. Unlike Bitcoin (BTC) that was distributed in a decentralized way via mining, even Satoshi Nakamoto did not receive any Bitcoins (BTC) from a premine, the entire Ripple (XRP) supply of 100 billion coins was premined. Ripple Labs took 80 billion Ripple (XRP) in the beginning, Chris Larsen received 9.5 billion Ripple (XRP), Jed McCaleb received 9.5 billion Ripple (XRP), and Arthur Britto received 1 billion Ripple (XRP).
Ripple has been continuously selling XRP on the market that keeps crashing the price. During 2018, nearly half a billion XRP was sold, bringing the price down from $3.81 to $0.30. It is fair to speculate that heavy selling from Ripple Labs is detrimental to all other Ripple (XRP) investors and traders. When CoinMarketCap first listed Ripple (XRP) on Aug. 4, 2013, there were 7.8 billion Ripple (XRP) in circulation. By August 2014, there were 29 billion Ripple (XRP) in circulation. At the beginning of 2015, there were 31 billion Ripple (XRP) in circulation, at the beginning of 2017 there were 36.3 billion Ripple (XRP) in circulation, and at the beginning of 2019 there were 40.8 billion Ripple (XRP) in circulation. So far in 2019 Ripple Labs has dumped another 1.77 billion Ripple (XRP) onto the market, bringing the circulating supply up to 42.57 billion Ripple.
Ripple is a prime example of the failure of supply centralization. In the long term they have persistently lost value, more than any other cryptocurrency has. Considering the tens of billions of Ripple (XRP) yet to be dumped, it seems likely that Ripple (XRP) will continue losing value relative to Bitcoin (BTC) long term. The only person who seems to benefit from this is Ripple labs and the three co-founders. All in all, looking like a bad deal fo all the regular traders and investors who buy Ripple (XRP).