- Panos Mekras states that all of the XRP supply has been in circulation since 2012.
- He asserts that XRP was never designed for banks but to disintermediate financial institutions.
- Investors express frustration over price stagnation and shifting narratives around XRP’s utility.
Crypto author and co-founder of Anodos Finance Panos Mekras has addressed what he calls a major misconception about XRP’s circulating supply and its original intended use.
In a tweet, Mekras argued that all 100 billion XRP were created and put into circulation in 2012 when the XRP Ledger (XRPL) officially launched. Contrary to popular belief, he asserted that there has never been any inflation of XRP, meaning no new tokens have been created beyond the initial supply.
The Truth About XRP’s Circulating Supply
Mekras explained that the XRPL, unlike Bitcoin, doesn’t rely on mining or Proof-of-Work (PoW) to distribute its tokens. Instead, the three core developers behind it—David Schwartz, Arthur Britto, and Jed McCaleb—initially made XRP freely available through a Genesis wallet, allowing anyone to claim as much as they wanted.
As Ripple Labs (then called OpenCoin) was formed, the team sought ways to distribute XRP fairly. This led to widespread giveaways, airdrops, and faucet programs that dispensed thousands of XRP daily.
How Was XRP Initially Distributed?
However, Mekras noted that these distribution methods were eventually stopped due to their negative impact on XRP’s price stability.
By 2017, Ripple made the decision to lock the majority of its remaining XRP into escrow, a built-in feature of the XRPL, to prevent potential large-scale sell-offs that could further destabilize the price.
CoinMarketCap’s Supply Calculation Questioned
A major point of contention for Mekras is the way CoinMarketCap (CMC) and other market tracking websites calculate XRP’s circulating supply.
Related: XRP’s Counter-Narrative: Challenging Bitcoin’s Institutional Dominance Towards $200K
Mekras pointed out that while XRP has been active since 2012, CMC excludes Ripple’s escrowed tokens from circulation while failing to account for similar escrows by other XRPL users.
Mekras argued that if escrowed XRP is considered out of circulation, then all escrows—not just Ripple’s—should be excluded.
Investor Concerns Over XRP’s Future
Mekras’ comments triggered further reactions among community members. One commenter questioned whether XRP would ever reach the $10 mark, citing the conflicting narratives surrounding its purpose and level of adoption.
Others pointed to Ripple’s partnerships with financial institutions, arguing that these collaborations contradict claims that XRP was not intended for banks.
Skeptics also raised concerns about Ripple’s role in the XRP ecosystem. Some investors believe the company has used XRP primarily as a funding vehicle, profiting from retail investors while delaying real utility.
“Future promises never deliver,” one critic said, alleging that XRP’s true adoption remains hidden behind non-disclosure agreements.
“XRP Was Never Meant for Banks”
Mekras pushed back against claims that the digital asset was created for institutional use. He stated that Ripple’s founders actually opposed banks and middlemen.
Related: Attorney Bill Morgan Reveals How US Bank Failures Disrupted XRP Transactions in Ripple’s ODL System
“Scammers (aka influencers and YouTubers) are to blame for this,” Mekras wrote. He argued that the belief that XRP was designed for banks and cross-border payments is a misconception initially spread by Bitcoin maximalists.
According to Mekras, this narrative was later amplified by certain XRP influencers, ultimately damaging the asset’s reputation and hindering its wider adoption.
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