The market capitalization of Ripple's XRP token could be overstated by as much as 6 billion dollars: this is revealed by a research recently published by the analytical company Messari.
A few days after the publication of Ripple's report on last quarter results, Messari analyzed the legitimacy of XRP 's capitalization , using data collected from cryptocurrency exchanges and third-party services.
According to Messari, the amount of XRP token in circulation could be overestimated by about 48%, putting the effective capitalization of the currency at $ 6.9 billion rather than $ 13 billion, as currently reported by CoinMarketCap .
"In addition to the 59 billion XRPs in Ripple's balance sheets, there may be a significant and persistent selling pressure in the XRP markets, dependent on the restrictions imposed by market makers, co-founders and Ripple-affiliated foundation. for sales rates, based on XRP exchange volumes on exchanges. "
Messari emphasizes that such estimates could include illiquid positions , such as the $ 5.9 billion promised to the RippleWorks non-profit foundation by Ripple co-founder Chris Larsen, which would add to the already existing $ 2.4 billion XRP in RippleWorks sale restriction.
The report explains that it is not possible to obtain reliable data without an official communication from Ripple, which for the moment has not issued any statement about it. Messari finally states that Ripple has never disclosed the method used to calculate the XRP token exchange volume
Source : Aaron Wood