Coin Metrics Research Reveals Contradictions Between Ripple’s Escrow System Report and Reality
A company focused on blockchain analysis called Coin Metrics has recently found some discrepancies in how Ripple reports its escrow system. According to the company, which also analyzes several other tokens, they were investigating Ripple and ended up discovering that there were some evident contradictions in their system.
For instance, the report found that what was visible on the XRP ledger was not the exact information that was widely publicized by Ripple.
The report made by Coin Metrics highlighted three important aspects. The first one of them is that the Ripple official announcement under-reported how much XRP was released from the escrows by 200 million XRP tokens, worth around $84 million USD in the market at this moment.
Another important point was that the “escrow queue” feature was implemented in a different way than it was originally affirmed in the report, which led to a faster release of the escrowed funds. Finally, the third major point is that some third-parties associated with Ripple have also released 55 million XRP tokens in the market, too.
Coin Metrics affirmed that cryptocurrencies are easier to audit than other assets and that there is a far larger degree of precision in doing it, which is how the company can see discrepancies like this if the other companies are not being very clear with their reports.
Ripple, according to the company, was called, but the company has decided not to respond to the requests to clarify the situation.
Ripple and XRP, Too Centralized?
This is far from the first criticism ever received by Ripple. The company has often attracted criticism because it is centralized with XRP, despite often claiming the contrary.
While the XRP tokens are supposed to be decentralized, Ripple owns a huge amount of them, which basically makes most investors wary of the token’s potential of becoming something like a security token.