Post
Topic
Board Altcoin Discussion
Re: XRP ( RIPPLE ) Discussion - All about XRP
by
canth
on 18/01/2015, 23:03:56 UTC
Indeed - the real market cap is much less than what coinmarketcap shows which is just the total 100Bn XRP - the 69% that Ripple Labs holds. If Larsen, Britto and McCaleb were to sell their XRP into the market, then the price would plummet. The true market cap is more like $160m or 1/3 of that currently showing on coinmarketcap.

I addressed founder allocation concerns earlier in this thread. it may be useful info if you are not aware of more recent developments.

In general, I think market cap is a pretty useless metric. It all comes down to how specific sites decide to calculate market capitalization, and valid arguments exist regarding the flaws and trade-offs of all the varied methods.

It seems you are suggesting that the coinmarketcap.com homepage calculates XRP market cap according to the full ~100Bn XRP supply. If you check the Available Supply column, you will see coinmarketcap.com is using solely the number of XRP not held by Ripple Labs.

If you would like to see the marketp cap calculation result based on all XRP (total supply), you can view that by switching to the Total Supply display, by using the Currencies tab dropdown. I believe coinmarketcap.com is already showing the 1/3rd value of the total supply that you believe is most accurate.

Coinmarketcap.com previously used the full ~100Bn XRP (total supply) for its calculation, which has led to frequent confusion.

I understand that Coinmarketcap used to use the full ~ 100Bn XRP supply for the calculation, which was ridiculous since most of it wasn't available for trading. I am saying that the current 31Bn used by Coinmarketcap is also off by a full 66% since ~ 20Bn XRP are locked up with 3 owners and not available for general trading. Sure, one could argue that the 7% held by Satoshi isn't available for general trading as well, but I'll take the 7% held by Satoshi vs the 66% of the 31Bn held by 3 people any day when comparing real market caps.

That's why I say that the ~$480m market cap should really be closer to the $160m that actually trades hands and isn't locked up (even temporarily).