XRP Market Cap May Be Overstated by Billions, Messari Report Estimates

A new report from crypto data startup Messari estimates that the true market capitalization and circulating supply of the digital asset XRP is markedly less than what data sources currently present. As depicted on data providers like CoinMarketCap as well as Ripple – the distributed ledger tech company closely linked to the digital asset – XRP’s circulating supply is pegged at roughly 41 billion tokens. But in its report, Messari posits that of that figure, 19.2 billion XRP “may be illiquid or subject to significant selling restrictions” tied to daily trading volume, including “at least 6.7 billion XRP” held by Ripple co-founder Jed McCaleb that are subject to an agreement dating back to 2014. In addition, Messari said that it believes that the circulation figure includes 5.9 billion XRP pledged by Ripple co-founder to a nonprofit entity called RippleWorks, an amount that it contended hasn’t been delivered. As well, Messari identified 2.5 billion XRP held by RippleWorks that are also subject to daily selling restrictions. Further, the report also estimates that as much as 4.1 billion XRP sold via XRP II, Ripple’s money-services business, is also subject to selling restrictions. But Messari notes that “it is impossible to track the magnitude of this illiquidity without direct disclosures from Ripple, so we use a reasonable estimate.” All told, these factors have led to the market cap of XRP being “likely overstated” by more than $6 billion, according to Messari’s reasoning. Further, in its report, Messari estimated that the figure could ultimately be higher, explaining:
“In reality, this estimate may prove to be conservative, as they belie XRP trading volumes which have consistently fallen well below that of EOS and Litecoin, two cryptoassets whose current referenced market caps are a mere 17% and 15% of XRP’s, respectively. In addition, we believe the actual amount of ‘restricted’ XRP in distributions to investors, banking partners, and team member may be significantly higher than our initial estimates reflect.”
The report notes that it sought input from Ripple and RippleWorks before the report’s publication but hadn’t heard from the company, which Messari contended results in questions about how the restrictions work in practice. “Ripple has not shared the methodology or reference exchange data it uses to calculate trading volume for XRP, a critical data point that drives selling restrictions. More than 99% of XRP trading volume appears to come from overseas exchanges, many of which have been suspected of wash trading,” the report states. CoinDesk reached out to Ripple for comment prior to the report’s release but did not hear back by press time. On Thursday, Ripple released its Q4 report, noting that average daily XRP volume was $585.7 million. The firm sold $88.88 million programatically – an increase compared to its third-quarter figure of $65.27 million – and $40.15 million in “institutional direct sales,” representing a decrease from Q3’s $98.06. Source: www.coindesk.com

Arrington XRP Leads $1 Million Funding Round in Dapp Economy Startup

Dapp economy startup Totle has raised $1 million in a private funding round. Arrington XRP, the hedge fund launched by TechCrunch founder Michael Arrington, led the round along with NEO Global Capital and Goren Holm Ventures. Detroit-based Totle offers an application programming interface (API) allowing crypto wallets such as EtherDelta and RadarRelay to offer certain exchange functions, including payments and transactions, arbitrage exploitation and rebalancing, said CEO David Bleznak. In particular, the startup focuses on supporting other decentralized platforms. The new funding will be largely be used to hire more developers, with about 40 percent also going into administration and marketing, Bleznak told CoinDesk. “By adding just two or three more developers we can integrate a lot more [business-to-business] customers,” he said. Response to the API, which launched in the last month, has generally been positive, he said, adding: “A dozen groups are actively integrating [the API] into their softwares and another 50 groups that don’t have the resources [are in line].” The company’s tool allows for retail investors to optimize price discovery when buying or selling across borders, said Geoffrey Arone, a partner with Arrington XRP. “If you’re a [professional] trader, you can talk to people and get the best possible price,” he said, but “a lot of folks don’t have the time or means to execute [trades] to get the best possible price.” He also cited the team’s flexibility as a reason for Arrington XRP’s investment, noting that Totle had been working on a decentralized application with a business-to-consumer focus, but shifted to focus on the business-to-business API base due to “natural consumer demands.” The investment indicates Arrington XRP’s confidence in how Totle is operating as well, he said, following previous statements by Arrington indicating the company may not invest in other U.S.-based startups. Source: www.coindesk.com

Euro Exim Bank Taps Ripple’s xRapid for Cross-Border Settlements

Euro Exim Bank, a London-based bank primarily focused on providing financial services for export and import companies, will become the first bank to publicly announce it is using the XRP cryptocurrency for cross-border payments.

Ripple announced Tuesday that Euro Exim Bank, alongside payment startups JNFX, SendFriend, Transpaygo and FTCS, would be leveraging XRP for cross-border transactions. Further, Ahli Bank of Kuwait, BFC Bahrain, ConnectPay, GMT, WorldCom Finance, Olympia Trust Company, Pontual/USEND and Rendimento have signed on to RippleNet.

As a result, the startup now has more than 200 customers worldwide, according to Tuesday’s reveal.

Ripple CEO Brad Garlinghouse said the company is now signing two-three customers per week, and last year saw a 350 percent increase in customers sending live payments.

“We’re beginning to see more customers flip the switch and leverage XRP for on-demand liquidity,” he added in a statement.

Euro Exim Bank director Kaushik Punjani noted that his bank’s customers have traditionally been restricted from settling transactions quickly and cost efficiently. This issue extends to both major corporations and individual remitters, he said, adding:

“Working collaboratively with Ripple and selected counterparts, we have designed, tested and are implementing both xCurrent and xRapid in record time, and we look forward to the benefits these will bring our customers.”

David Lighton, CEO and co-founder of remittance service SendFriend, similarly touted the focus on cheap cross-border payments as the main benefit of using xRapid.

“A distributed ledger-based solution, leveraging Ripple’s XRP asset allows us to settle transactions in real time, with lower capital requirements and lower costs. We’re proud to partner with Ripple to offer our customers cheaper, faster, payments to the developing world,” he told CoinDesk.

A number of other companies have already begun using xRapid, which uses the XRP cryptocurrency, for international payments, including MercuryFX, Cuallix and Catalyst Corporate Credit Union. However, while the three firms provide financial services, none possess a banking license like Euro Exim does.

In the past, other companies including Western Union, MoneyGram, Viamercias and IDT have trialed xRapid, though none are utilizing the platform in full production at this time.

Source: www.coindesk.com

The Best Way to Exchange XRPs

Originally founded in 2012, Ripple developed its own digital currency called XRP, which is now one of the oldest cryptocurrencies within the crypto space. It has managed to become the world\'s third cryptocurrency after bitcoin and ethereum (as of October 2018), sometimes even replacing ethereum as the second most valuable coin. However, despite a staggering performance and widening adoption, it is still complicated for ordinary people to understand how the whole system works. So, what is XRP exactly? Why the coin became so popular that even such giants as Santander and SWIFT got interested in the company? Why the ever-growing number of institutions choose to join the RippleNet with more and more businesses adopting technologies developed by Ripple? Before we\'ll go further, and find the answers to all these questions, let\'s clarify the terms because they\'re often used wrongly. Generally, \'Ripple\' refers to three things: Ripple – the firm operating the Ripple platform XRP – the virtual currency that is developed to facilitate payments on Ripple RippleNet – a global settlement system that connects banks, exchanges and other financial firms via the distributed ledger Now, when everything is more or less clear, let\'s turn to the exploration of the fascinating world of innovations and technological advancements driven by the company. Swap XRPs with hundreds of other crypto-coins instantly