Jump to content

Will XRP Escrow reduce Mkt. Cap by 60% +? Price impact = ?


wiredless1
 Share

Recommended Posts

40 days left for the promised Ripple escrow of a significant amount of company held XRP. By end of 2017, they've said. Most crypto market cap summaries value XRP as one of these: "3rd highest" "4th highest" "top 10 crypto currency". Take away 60 plus% of the circulating supply, moving into the 300M range, down from 1 billion and the market cap drops significantly. I have a sense that this is "told you so" and "dump the garbage" territory for XRP...if one does not understand the underlying technology of the asset. And most don't.

Do you have the sense that even though the longer term value is enhanced by restricting how XRP becomes available to the buying public that this event creates a significant risk of downward pressure for the token? I do.

How much?  I'm curious about "the intelligence" of the contributors to this site to get a better picture of how much XRP may be affected.

Edited by wiredless1
Link to comment
Share on other sites

As far as I know, not much will change in terms of market cap. Ripple's 65billion are not counted towards the current market cap.

When the escrow happens, those 65billion are still not available to the public so the market cap will remain roughly the same. The reason many people think that this will still increase the price is that the escrow adds some security for investors since Ripple cannot dump their XRP on the market anymore. All those XRP will be locked away and are only available to institutional buyers, who cannot dump the XRP either because of selling restrictions.

Link to comment
Share on other sites

Also I'd guess that as institutional investors make purchases they won't be able to dump. There'll be robust agreements in place 

 

So I'm guessing it won't alter available supply and therefore won't impact MC either negatively or positively?

Link to comment
Share on other sites

Coinmarketcap does not account the XRP Ripple holds. So no effect to the market cap.

22 minutes ago, Xrpdude said:

Am I right in saying that the locked up coins, when released, will only be available to institutional investors and therefore will not increase the supply for the public investor? 

No, they are probably distributed as the XRP is distributed currently. Both OTC and institutional. 

Link to comment
Share on other sites

12 minutes ago, Skippy said:

Coinmarketcap does not account the XRP Ripple holds. So no effect to the market cap.

No, they are probably distributed as the XRP is distributed currently. Both OTC and institutional. 

Really? Where have you read this? 

Link to comment
Share on other sites

16 minutes ago, Xrpdude said:

Really? Where have you read this? 

There is no reason for them to stop selling to open markets. Why would they stop it once the escrow is on? They are currently selling just a tiny amount to the open markets.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.