XRP’s market capitalization could be smaller than what it really is. According to a report released by Messari Crypto, XRP has a market capitalization $6.1 billion smaller than previously expected. Clearly, the Ripple community is against it, but Messari gives a solid reason why XRP’s market cap is smaller.
Is Ripple Market Cap Inflated?
According to CoinMarketCap, the most popular website for tracking crypto prices and data about digital assets, XRP has a market capitalization of $12.94 billion. The cryptocurrency is the second largest in the market.
Messari arrived at such a conclusion after investigating large sums of XRP that are locked or can be released to the market in just a few amounts. XRP’s liquid circulating supply could be just 48% less than the current value.
Messari wrote about this:
“A more precise estimate of XRP’s supply will likely require disclosures from Ripple, given the contractual restrictions the company has placed on a large percentage of XRP resales.”
Ripple has 59 billion XRP on its balance sheet. Furthermore, Jed McCaleb has 6.7 billion of the current XRP supply. However, he can only sell 1% of the daily trading volume. There are also 5.9 billion XRP that has been publicly committed to RippleWorks by co-founder Chris Larsen.
Messari keeps explaining which other institutions and Ripple partners own large sums of XRP and they cannot move these funds, at least in the near future. In sum, there are 19.2 billion of the 41.0 billion XRP in circulation that are illiquid or have significant selling restrictions.
A Ripple spokesperson has given an answer regarding this report. In a conversation with Coindesk, this spokesperson commented:
“Not only does this report contain several inaccurate assumptions around lockups and selling restrictions, but the entire report is also based on an incorrect calculation of market cap. While decentralized digital assets like XRP are different from traditional equities, the term ‘market cap’ is always a very simple calculation: current price X total number of the asset = market capitalization.”
Other individuals in social media, that are also supporters of XRP, have been criticizing the report on Ripple market cap. Something that has also created controversy among the crypto community is related to Messari Crypto’s founder, Ryan Selkis. Mr. Selkis has been threatened by a number from Nashville that recited the birthday of his wife, hanging up right after.
https://twitter.com/twobitidiot/status/1088584142705618946
Due to this situation, he is thinking of contacting the FBI and local police after these three threatening calls.
Read More About Ripple Market Cap
Want to learn more about Ripple? Read our guide to Ripple, Ripple Labs, and XRP, a breakdown necessary for any crypto investor. A search for Ripple on our site will bring up the latest XRP articles like coverage on a Ripple strategist claiming XRP is more used than BTC.
Interested in investing in Ripple? You’ll want to start with our XRP price prediction article and then go into our current Ripple technical analysis. (Always do your own research and read the site disclaimer). If you’re interested in buying Ripple, you can learn how to buy XRP on Binance, our suggested exchange for investors.
