Messari research shows XRP capitalization is overstated by $ 6 billion
XRP Market Cap overstated by $6 Billions? Messari Report
According to research by cryptanalyst firm Messari, XRP’s market cap can be almost doubled, since most of the issued coins are not involved in circulation.
The day before annual Ripple report, analysts examined data from crypto exchanges and others information services to determine the true state of affairs of the project. As a result, they found out that working capital company can be overvalued by 48%, and real capitalization cryptocurrencies is Total $ 6.9 billion, not par $ 13 billion in open sources.
IN report said that besides 59 billion XRP, about 19.2 billion coins may be illiquid due to existing market restrictions on sales established for Ripple partners and affiliate funds. These include 6.7 billion ripple owned by Jed McCaleb, one of the founders of the project. Potentially illiquid also are 8.4 billion coins held by the RippleWorks fund, which partially or wholly «frozen». 4.1 billion XRP sold through the company’s finance division also subject to sale restrictions.
By words Messari, it is impossible to determine the exact volumes of the assets withdrawn, so they led averaged indicators the scale of the revaluation. Adding that the real numbers may turn out to be much higher, since many exchanges artificially inflate trading volumes. but analysts did not indicate the assessment methods and sources of information on which they relied.
Ripple’s reps dispute Messari’s findings, claiming inaccuracies in assumptions and calculations researchers. They insist that XRP capitalization is actually even understated, insofar as should be calculated using a standard formula, based on the total number of assets and their rate, and now amount to approximately $ 31.6 billion.
Earlier, we reported that JP Morgan analysts predict a collapse of the bitcoin rate below $ 1260.