Ripple will, in all likelihood, publish its Transparency Report for the fourth quarter of 2018 this week. Leading up to this report, market research firm Messari announced an explosive assessment last night.
Messari claims to have conducted extensive research on the legitimacy of current Ripple XRP market capitalization data. This is the data available through crypto services like ours or Coinmarketcap and on crypto exchanges. Messari believes that Ripple's market capitalization will be significantly overstated by as much as $ 6.1 billion.
The main points of the ripple report
Ripple XRP's liquid “orbital offer” and “market capitalization” may be overvalued by 48%, so the “market capitalization” for XRP totals $ 6.9 billion, compared to $ 13.0 billion Dollars, which are shown at the current exchange rate between USD and XRP.
In addition to the $ 59 billion in Ripple's balance sheet ($ 52.5 billion for long-term fiduciary and $ 6.5 billion for sale), there may be continuing pressure on the XRP market. Ripple's market-making partner, a Ripple-affiliated foundation and the co-founders of Ripple seem to have the ability to sell XRP up to 1% of its daily trading volume.
Ripple has not made public the methodology used to calculate trading volume for XRP. More than 99% of the XRP trading volume appears to come from abroad
Ripple's sales restrictions on co-founder Jed McCaleb have frozen at least 6.7 billion XRP coins. This stock can be sold up to a maximum of 1% of the daily trading volume.
Jed told Messari, “What I can sell per day is well below 1% of the total daily volume. I am not sure if I can say freely how the (trading volume) is calculated. “Other ripple founders Arthur Britto and Chris Larsen may have similar sales restrictions on their multi-billion dollar XRP allocations.
The report assumes that the current estimates of the circulating supply include an illiquid position of XRP 5.9 billion. This donation was announced by co-founder Chris Larsen, but has not yet been made. She should go to RippleWorks, a corporate foundation in California. Ripple had previously reported on the existence of this donation in a (now deleted) post of the CMO of the company in the “RippleForum”. This was in August 2014 and at the same time the existence of the original XRP liquidation contract was announced by Jed McCaleb.
🚨Exclusive report: We believe Ripple's $ XRP market cap is likely to be overstated by $ 6.1 billion based on inflated circulating supply numbers.
Read our summary and methodology: https://t.co/0zD5YUSTpV …
Newsletter subscribers can access the full report through that link.
– Messari (@MessariCrypto) January 24, 2019
Messari Verified Ripple Foundation Tax Receipts
Messari says it has reviewed the public tax records for RippleWorks and the addresses of the XRP wallets. These show that the foundation holds at least 2.8 billion XRP and currently 2.5 billion XRP as of 30 April 2017. These holdings contain daily selling restrictions, “which are based on a percentage of total trading volume within 24 hours on certain crypto exchanges.”
Finally, Messari suspects that 4.1 billion Ripple XRPs sold through the company's services business (XRP II) may be subject to sales restrictions
Taken together, this could mean that 19.2 billion of the current 41.9 billion XRP coins are illiquid or subject to significant sales restrictions. In reality, this estimate could prove conservative. Messari indicates that the actual amount of “frozen” XRP on distributions to investors, banking partners and team members may be significantly higher than their original estimates reflect.
What do you think about this report? Share your opinion in the comments below.
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bricht-die-ripple-xrp-marktkapitalisierung-um-61-milliarden-usd-ein-neuer-bericht-bezweifelt-offizielle-ripple-angaben/
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