Messari founder Ryan Selkis might have called out Ripple’s leadership for lack of transparency and compared it to Dr. Jekkyl and Mr. Hyde because of its strange business model but in his latest newsletter, he clarified that he doesn’t hate Ripple or XRP.
Last year in January, Selkis released a report where he contested the market cap of XRP and received a lot of backlash for it from the “XRP Army.”
Then late last year, he published a report where he accused the company of using charity foundation RippleWorks as a tax shelter. The findings of his report coincided with Elliptic’s report that tied $400 million of illicit activity to XRP.
But that fact is he thinks “Ripple’s tech is interesting, and the asset could prove successful under a certain set of (admittedly unlikely) scenarios.”
Recently, he was a guest on Abra’s Money 3.0 podcast where he had many good things to talk about the San Francisco-based tech company which he said has built “one of the more impressive tech stacks.”
According to Selkis, Ripple’s tech solutions are much closer to “product fit” than 99% of other projects in the crypto industry. The issue, however, has always been what he called the “Jekyll and Hyde of crypto.”
Jekyll and Hyde of crypto
Launched in 2012, over all these years, Ripple has released multiple solutions and have crossed more than 300 in its list of partners that includes some of the world’s top banks and financial institutions like MoneyGram, Santander, SBI Holdings, and others to enable faster, lower-cost payments around the world.
“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,” said Selkis while covering the good aspects of Ripple.
But the issues remain with the transparency reports that he said really doesn’t clear out things about its actual funding model or how funds are actually flowing.
But the party line Selkis said is 80% of XRP that was “gifted to their balance sheet.” The huge amounts of XRP that the company sells but doesn’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, it means either the amount of sell-pressure from insiders is understated, which is what has been happening over the course of the last 18 months when the digital asset lost over 95% of its value, or their market cap is overstated.
Fake it until you make it coin
However, Selkis feels Ripple could end up doing “very well if the banks take the bait.” Also if Ripple continues to allow them to buy XRP for “pennies on the dollar.”
“So, it’s like “fake it until you make it coin.” The revenue model of the company and what it actually delivers are “two very, very different things,” he said.
Selkis however, points towards a recent video by Mexico’s remittance company and Ripple partner Bitso’s CEO Daniel Vogel who shared how exactly the company has been utilizing XRP in remittance flows across the US-Mexico border. He also revealed that their aim is to capture 20% of the weekly US-Mexico remittance flow by the end of this year.
“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.
Price Not Seeing Much Action
Amidst this, during the Congressional hearing “Is Cash Still King” about non-cash payment technologies, US Representative Tom Emmer mentioned Ripple and XRP along with other cryptos and projects.
In other related positive news, SBI Holdings’ latest presentation revealed that it offers XRP as shareholder benefit and Ripple-based Money Tap is considering investment from Ripple.
Despite all these positive bouts of news, XRP price is trading at $0.241, down in both BTC and ETH market. However, the market saw the scheduled release of 500 million XRP from the escrow account.