- David Schwartz, Ripple’s CTO clarified after an analyst Vincent Van Code argued that XRP’s market capital was calculated in a misleading manner based solely on circulating supplies.
- Ripple is continuing to increase its institutional footprint. It recently completed the acquisitions of Hidden Road ($1.25 billion) and GTreasury ($1 billion).
David Schwartz is the CTO of Ripple. He has addressed the issue regarding Ripple’s XRP and if they are liquidable at will.
A massive 35 billion dollars in XRP is held by the blockchain company, spread across 14000 contracts. These contracts were created to control the supply of tokens and stop massive influxes.
David Schwartz, Ripple’s CTO, Responds To Doubts About XRP’s Value
The crypto community has been divided over the accuracy of XRP’s market cap. Vincent Van Code, market analyst, said that the XRP’s capitalization is calculated incorrectly based on only the 65 billion tokens in circulation. He excluded the 35 billion held in escrow.
Van Code likened this situation to Bitcoin’s (BTC), in which the entire supply of 21 million coins is included in its total market value, even though over one million BTC are held by Satoshi Nakamoto in his wallet and many more millions considered lost or unactive. He said that Bitcoin’s market capitalization could drop by as much as 15% if inactive bitcoins were excluded.
So, he called current valuation methods “a pointless lie you were programmed to think is important by the likes of Binance.”
David Schwartz from Ripple clarified the fact that XRP Tokens in escrow are locked, and they cannot be circulated until their planned release. He did note that Ripple can technically transfer the ownership of escrow account or sell rights to future releases. He said this in his message to the X Platform. Schwartz wrote:
Ripple can sell their right to the release of tokens from escrow, or they could even sell into which accounts escrows are completed. XRP can still not be circulated until the release date.
David Schwartz (CTO of Ripple) questioned last week the U.S. SEC’s stance regarding Ethereum’s classification. This sparked a debate on the SEC’s inconsistent approach in defining which cryptocurrencies can be classified as securities. reported CNF
Ripple has approximately 35 billion XRP held in escrow by more than 14000 contracts. These contracts control the token release, and help prevent a sudden oversupply of the market. The total XRP token supply is capped to 100 billion, and there are currently 65 billion in circulation.
You can push ahead with greater institutional reach
Ripple, a blockchain company, has made some important acquisitions to expand its institutional reach. Following its $1.25 billion purchase of Hidden Road and now known as Prime, it has become first crypto company to operate multi-assets prime brokerage. Ripple Prime. Ripple has made its largest purchase to date.
Earlier this month, the company also finalized a $1 billion purchase of GTreasury, signaling its expansion into the multi-trillion-dollar repo and corporate treasury markets.
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Source: www.crypto-news-flash.com
