Ripple Critic Compliments its “Impressive Tech” & XRP Seeing “Real Traction”
- Messari founder Ryan Selkis says Ripple has built “one of the more impressive tech stacks”
- Ripple is the “Jekyll and Hyde of crypto” that is doing great work and a phenomenal team while coming up with transparency reports that obfuscate things
Ryan Selkis doesn’t hate Ripple or XRP, clarified the Messari Founder in his latest newsletter. Earlier last year, Selkis released a report contesting the market capitalization of the digital asset XRP and received a lot of backlash from the “XRP Army.”
Then in November, he published a report accusing the company of using RippleWorks charity foundation as a tax shelter, findings that coincided with Elliptic’s report tying $400 million of illicit activity in XRP.
“Yes, I've called out the company leadership for lack of transparency, and yes, I've compared the company to Dr. Jekkyl and Mr. Hyde because of its strange business model. But I actually think Ripple's tech is interesting, and the asset could prove successful under a certain set of (admittedly unlikely) scenarios,” said Selkis Thursday.
Recently, he appeared on Abra’s Money 3.0 podcast where when asked about Ripple, Selkis shared much positive views on the software company that he said has built “one of the more impressive tech stacks.”
According to him, Ripple’s tech solutions are also much closer to “product fit” than any other (99%) projects in the crypto space.
The issue, however, has always been what he called the “Jekyll and Hyde of crypto.”
Jekyll and Hyde of Crypto
Ripple’s development in the space can't be denied, having crossed over 300 in its partners’ list that involves some of the world’s top banks and financial institutions.
“On the one hand, you’ve got Dr. Jekyll who’s trying to dis-intermediate SWIFT and working with all these banks and got this phenomenal team and board and advisory members and they are creating interesting tech, solving real problems, and were very early as pioneers in the industry,” explained Selkis.
But in the midst of these developments, Ripple comes up with transparency reports that really doesn’t clear out things much regarding how funds are actually flowing or the actual funding model, said Selkis. The “continuous fundraise” is also treated as revenue by the company.
And the party line is the 80% of XRP that was “gifted to their balance sheet,” and has been sold but they don't really care about the securities law aspect of it.
“What we do care about is whether the XRP currently outstanding is truly circulating or whether it's encumbered in some way, shape or form.”
Because if XRP is encumbered, Selkis said two things would happen, either they are understating the amount to sell-pressure from insiders, which is what actually playing over the course of the last 18 months, or their market cap is overstated.
Ripple and XRP are seeing real traction
Ripple could end up doing “very well if the banks take the bait,” and Ripple continues to offer them “sweetheart deal” to buy the digital asset for “pennies on the dollar.”
“So, it’s like “fake it until you make it coin.” The revenue model and what the company actually delivers are two very, very different things, he said.
However, recently, Daniel Vogel CEO of Bitso, Mexico’s remittance company and Ripple partner revealed how the company has been utilizing XRP in remittance flows across the US-Mexico border. He said they’re aiming to capture 20% of the weekly US-Mexico remittance flow by the end of 2020.
“For now, it's at least one example of a market where Ripple and XRP are seeing real traction. Time will tell if that recipe is replicable in other markets,” said Selkis.