Altcoin News: Analysts Found Several Important Discrepancies Between What Was Publicly Reported by Ripple and What Was Visible on the XRP Ledger
May 17, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Coin Metrics analysts studied the quarterly reporting of the American fintech company Ripple and found discrepancies between the data stated in it and the data from the public XRP blockchain.
According to Coin Metrics, in two quarterly reports for the third quarter of last year and the first of the current Ripple underestimated the amount of XRP issued from its escrow wallet. The total discrepancy was about 200 million XRP or $84 million at the rate at the time of the original publication.
Also, analysts managed to find out that the “escrow queue” does not work the way it sounds in the company’s statements. It was assumed that the unused funds Ripple will bring back to the storage, setting as the date of their re-release of the first month, which does not have such security.
If you believe the data from the blockchain, in practice, Ripple distributes funds in such a way that $1 billion is provided every month before moving on to the next in line.
Although it is quite reasonable to accumulate funds in such a way, the modified scheme will lead to an accelerated release of XRP compared to the strict storage scheme that most news publications and analysts expected to see.
In addition, analysts have found that Ripple launches additional XRPs from its escrow wallets, which are not part of the procedure described above. According to them, to date, 55 million XRP was released in this way, most of which then went to the Bitstamp exchange.
Author: Marko Vidrih