Ripple allegedly hasn’t been terribly honest when it comes to reporting its total figures.
Where Did All That XRP Go?
The news comes from Coin Metrics, a blockchain analysis that searches for discrepancies in blockchain payments. According to a new report issued by the firm, several have been discovered in Ripple’s new escrow system.
At press time, Coin Metrics is pressuring Ripple for some explanations regarding a few issues it’s discovered with its recent numbers. The report explains:
Coin Metrics found several important discrepancies between what was publicly reported by Ripple and what was visible on the XRP ledger.
Among the issues detailed in the report are:
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Two quarterly market reports under reported the number of XRP released from escrow by a total of 200 million XRP ($84 million at current prices).
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The ‘escrow queue’ is implemented differently than announced, leading to a faster future release of escrowed funds compared to the announced schedule.
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Other party/ parties potentially associated with Ripple have released 55 million XRP from an unknown escrow address not connected to the main Ripple escrow account.
These missing items can be attributed to a few things. To be fair, Ripple is a very large cryptocurrency company, and currently holds the number three spot in terms of largest cryptocurrencies by market cap. It’s possible that with several billion worth of crypto in circulation, Ripple simply performed incorrect math when reporting its numbers. $84 million compared to a few billion is a relatively small figure.
At the same time, it’s difficult to accept the idea that Ripple, given its size, popularity and stance in the crypto industry, could make such a mistake. Were these coins transferred to a separate or unreported account? Coin Metrics is working to get to the bottom of the situation, but Ripple, according to the firm’s representatives, is proving to be rather standoffish when it comes to uncovering the truth.
Thus far, the company has failed to respond to any requests for comment made by Coin Metrics. The organization concludes:
Compared to traditional assets and currencies, most cryptocurrencies’ supplies and behaviors can be audited to a much greater degree of precision.
Maybe this is some sort of final warning to Ripple executives. They either explain what happen or face a deeper examination.
Watch Out, Ripple…
Coin Metrics has been examining digital currencies’ blockchain transactions for years. Recently, the company put out a report suggesting that the cryptocurrency exchange BitMEX was far more centralized than it would like its fans to know. It also has repeatedly criticized Ripple for its use of commentators in the past.
This isn’t getting in the way of the currency’s success, however. Recently, news emerged that the coin had been added to Coinbase’s list of offerings, and XRP trading was now available to New York residents.