Excerpt:
Recent report from crypto data startup Messari estimates that the true market capitalization and circulating supply of the digital asset XRP is significantly less than what data sources currently present.
While Messari Research argues that XRP’s supply is likely to be overstated, meaning that billions of coins are included there falsely, we’ve prepared comprehensive Ripple guide, so that you can gain the full understanding of how the whole system works, what’s so special about XRP and how Ripple drives innovations and technological progress, before coming to your own conclusion regarding this latest report.
As depicted on data providers like CoinMarketCap as well as Ripple – the distributed ledger tech company closely linked to the digital asset – XRP’s circulating supply is pegged at roughly 41 billion tokens. But in its report, Messari posits that of that figure, 19.2 billion XRP “may be illiquid or subject to significant selling restrictions” tied to daily trading volume, including “at least 6.7 billion XRP” held by Ripple co-founder Jed McCaleb that are subject to an agreement between him and Ripple.
They wrote:
“If history is a guide, Ripple is due to disclose its Q4 2018 transparency report this week. In advance of that report, we conducted extensive research into the health and legitimacy of the currently quoted XRP "market cap” available on third party crypto data services and exchanges. We believe the figure is significantly overstated.
We acknowledge that some of the estimates in this report lack precision, but believe they are directionally correct, and presented in good faith. We look forward to Ripple’s response, and will update this report accordingly if and when they do reply.”
According to Messari, Ripple co-founders Arthur Britto and Chris Larsen "could have similar selling restrictions on their multi-billion dollar XRP allocations," though it has not included these in its analysis.
"Combined, these holdings means 19.2 billion of the 41.0 billion XRP currently quoted as “in circulation” may be illiquid or subject to significant selling restrictions," the report authors wrote.
They added:
"In reality, this estimate may prove to be conservative, as they belie XRP trading volumes which have consistently fallen well below that of EOS and litecoin, two crypto-assets whose current referenced market caps are a mere 17% and 15% of XRP’s, respectively. In addition, we believe the actual amount of 'restricted' XRP in distributions to investors, banking partners, and team member may be significantly higher than our initial estimates reflect."
XRP is seen trading at $0.318 at the time of writing. The largest altcoin is still creeping lower with a loss of 1% on the day. XRP witnessed a seven-day loss of approximately 3.2%. Moreover, in the last three months, the digital asset has plunged by 15.99%. XRP is the world largest crypto after Bitcoin (BTC) with a market cap of $12.9 billion and a 24-hour trading volume of $348 million.
Since XRP community is quite active on social media, the Messari’s report shared by its founder, Ryan Selkis captured the attention of major crypto indices and wider XRP enthusiasts. While Ripple’s spokesperson calls Messari’s statement as unrealistic, on the other hand, Ryan Selkis said that they’ve already reached Ripple’s team to verify the report. Having said this, there wasn’t any response to the report before it was published.
~~~ embed:1088520911555358721?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1088520911555358721&ref_url=https%3A%2F%2Fcoingape.com%2Fmessari-research-xrp-leads-threat-calls%2F twitter metadata:dHdvYml0aWRpb3R8fGh0dHBzOi8vdHdpdHRlci5jb20vdHdvYml0aWRpb3Qvc3RhdHVzLzEwODg1MjA5MTE1NTUzNTg3MjF8 ~~~
Based on the thesis that billions of XRP have been distributed to people and entities who are contractually restricted from selling them at will, the researchers warn that the XRP cryptocurrency may face “persistent sell-side pressure,” above and beyond what has been publicly disclosed by the Ripple company and its affiliates.
@yuriks2000 purchased a 33.51% vote from @promobot on this post.
*If you disagree with the reward or content of this post you can purchase a reversal of this vote by using our curation interface http://promovotes.com
The generally accepted method of calculating capitalization does not give a correct assessment, since the principle of operation of different coins also varies and applying the same method to them is at least incorrect. Not all coins are in circulation, many simply quietly lie in users' wallets, while the conventional 20-30% of the entire issue is traded and form the price of a single coin, and with it the capitalization. But most likely most of it lies in ripla, or on the stock exchanges, but still belongs to riplu. Riphl definitely owns about 50-60 billion, which, as it were, are locked up, but they are no longer taken into account in capitalization, although they used to be taken into account. But those in the market are not all sold out. They seem to be in the market, but this does not mean that they are sold ...
Hi, @yuriks2000!
You just got a 2.14% upvote from SteemPlus!
To get higher upvotes, earn more SteemPlus Points (SPP). On your Steemit wallet, check your SPP balance and click on "How to earn SPP?" to find out all the ways to earn.
If you're not using SteemPlus yet, please check our last posts in here to see the many ways in which SteemPlus can improve your Steem experience on Steemit and Busy.
Hi @yuriks2000!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 6.155 which ranks you at #259 across all Steem accounts.
Your rank has not changed in the last three days.
In our last Algorithmic Curation Round, consisting of 219 contributions, your post is ranked at #110.
Evaluation of your UA score:
Feel free to join our @steem-ua Discord server
Hello!
I am a community manager at Snax. We are trying to make public blockchain based on EOS node. Snax chain will provide transactions over social networks, token supply based on user social influence.
Snax as well as Steemit rewards its users for the content created, but Snax works as overlay solution over existing social networks (e.g. Twitter)
We have no ICO. We already have a testnet, mainnet will be launched this month, and we currently looking for great candidates for Block Producers like yourself. You can find out more about us at our website snax.one
If our project is interesting for you, please let me know by emailing me at [email protected] or on steem chat.
Looking forward to hearing from you, and keep rocking this world!
Source
Spamming comments is frowned upon by the community. Continued comment spamming may result in action from the cheetah bot.
More Information:
The Art of Commenting
Comment Classifications
Congratulations @yuriks2000! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
Click here to view your Board
If you no longer want to receive notifications, reply to this comment with the word
STOP