- Blockchain researcher criticizes XRP’s centralization and calls it an investment scam.
- XRP community defends decentralization with robust validator and governance features.
- Debate intensifies as critics question XRP’s security and economic mechanisms.
Justin Bons, the founder and CIO of Cyber Capital, has called out XRP for being a highly centralized cryptocurrency and labeled it an “investment scam.” In a recent social media post, Bons criticized Ripple, the company behind XRP, for creating a network that he believes is far from decentralized.
According to Bons, XRP operates with a permissioned network, a low number of validators, and lacks proper economic security mechanisms, making it more centralized than other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).
Bons argues that the XRP Ledger is too centralized, as Ripple controls too much of the ecosystem. He pointed out that Ripple has the potential to restrict access to the network, making it a permissioned system rather than a truly decentralized blockchain.
Additionally, Bons mentioned that XRP’s low validator count contributes to its centralization and lacks the necessary economic security features seen in Bitcoin and Ethereum. For Bons, these flaws render XRP unreliable as an investment.
XRP’s Structure Defended: A Closer Look at Decentralization
In response, the XRP community, including Stellar Rippler, a popular crypto and blockchain researcher, strongly disagreed, debunking Bons’ claims and providing detailed counterpoints.
Also Read: The Truth About XRP: When Banks Will Fully Start Using It
Permissioned Chain
Stellar Rippler emphasized that the XRP Ledger (XRPL) is open-source and public, meaning anyone can run a validator or submit transactions without needing permission from Ripple. If XRP were a permissioned system, Ripple could block participation, but it cannot. This directly contradicts Bons’ claim that XRP is a permissioned chain.
Moreover, Stellar Rippler countered the low validator count argument by stressing that quality matters more than sheer quantity. XRP’s BFT consensus model ensures the network stays secure as long as 80% of validators are honest, which is a higher threshold than seen in other consensus models like Proof of Work. As he explained, “1,000 bad validators are worse than 150 honest ones.”
No Stakeholder Governance
On governance, Stellar Rippler clarified that XRP’s protocol amendments require 80% approval from UNL validators, and this process takes at least two full weeks. This structure prevents Ripple from imposing changes without broad consensus, contradicting the idea that Ripple controls the network’s governance.
Also, Stellar Rippler explained that XRP doesn’t rely on mining or staking dominance for security. Instead, finality-based consensus ensures that ledgers finalize irreversibly in 3–5 seconds, without the risk of chain reorganizations. This mechanism offers permanent security, contrasting with the more energy-intensive models used in PoW and PoS systems.
Centralized in Every Way Imaginable
Addressing the centralization argument, Stellar Rippler pointed out that Ripple runs less than 30% of the network’s validators, with 80%+ being independent validators. This makes it clear that no single entity, including Ripple, can control the network. Moreover, if Ripple disappeared, the XRP Ledger would continue to function, as it does not rely on a central entity for operation.
Finally, Stellar Rippler responded to the accusation that XRP is a “scam” by highlighting Ripple’s partnerships with major financial institutions such as SBI, Banco Santander, and the Monetary Authority of Singapore, noting that “scams don’t get global regulatory clarity, banking partnerships, and institutional corridors.” Additionally, Ripple was ruled not to be a security by a U.S. federal court, further validating the legitimacy of the network.
The Debate on XRP’s Centralization Continues
Despite the rebuttal from the XRP community, the debate over XRP’s centralization remains heated. While critics like Bons argue that XRP’s structure makes it more centralized than decentralized, supporters point to the network’s fast, efficient, and decentralized consensus model. XRP’s ability to attract major institutional partnerships continues to bolster its standing in the market despite these criticisms.
Also Read: Analyst: XRP Just Touched the Level We Have Been Expecting, Here’s What’s Next
