As part of a paper produced for Bloomberg, influential ICO researchers Satis Group have put in a pretty damning assessment of XRP’s future prospects.
A new research paper – the fourth part of five that influential ICO researchers Satis Group is producing for Bloomberg on the cryptocurrency market, titled Cryptoasset Market Coverage Initition: Valuation – has taken on the task of assessing how cryptoassets can be valued now, and what they will be worth in the future.
Generally, its mood on the future of crypto is bullish. It doesn’t, however, believe all coins will be winners.
The prime example of this, is that the researchers appear to hold no truck whatsoever with the way the crypto XRP is constituted and organised, commenting coldly that it sees “Little value in XRP,” and similar “cryptoassets which are misleadingly marketed, not needed within their own network, and have centralized ownership/validation.”
This frostiness towards Ripple and its relationship to XRP is put into sharp focus by Satis’ valuation, which in ten years predicts XRP will be worth $0.004 – down from $0.32 now, and over $3 in January.
The row over who the relationship between Ripple (the company) and XRP (the crypto) has rumbled on for a while now. Ripple (the company) alleges it no longer controls the fortunes of the cryptocurrency it created, though it still holds massive reserves of the pre-mined coins in its coffers.
It has seemed to spend much of its 2018 PR energy attempting to further disassociate itself from its creation. It’s a move that has been good for XRP in terms of its acceptance as a currency in its own right, but poor for its price as it has further exposed that its not necessarily an essential cog in Ripple’s increasingly successful back-end systems, xCurrent and xRapid, in a way that can make it more valuable for those who have invested in it.
The claims of centralisation is a point that has been hotly contested by Ripple in a recent blog post. where it doubled-down on previous musings from its CEO that Bitcoin was highly centralised, and largely controlled by Chinese miners. In it, it breaks down its belief that its consensus protocol is “inherently decentralised”, and over time will become more so compared to its prediction of increased centralisation of mined currencies.
Not everyone is buying it, though
Just because you make an infographic saying XRP is decentralized doesn’t make your coin decentralized.
XRP is as decentralized as me handing 100 of my friends my bank statement. I still hold all the cash, and my friends receive instant updates of when I spend it.
— Ltd Eclipse (@Ltd_Eclipse) August 28, 2018
The point being that, even if the ledger is decentralised, the issuance of Ripple’s currency is still controlled by Ripple itself due to its massive coffers of pre-mined XRP…
Dispersing a XRP ledger yes is decentralized but you don’t trade a ledger. U Trade XRP coin which has a central issuing authority. Again just because I hand 100 random people my bank statement(a ledger) doesn’t mean the currency(usd) comes from a decentralized issuer.
— Ltd Eclipse (@Ltd_Eclipse) August 29, 2018
Ripple is currently the subject of several legal actions in the US accusing it of securities fraud due to the way its was marketed. Ironically, the bearish sentiment of this Bloomberg-funded research comes as the same time as it was afforded another – albeit minor – court victory allowing multiple cases being bought against it on similar matters to be consolidated into one so-called ‘Complex Litigation‘.