Published: March 21, 2025
Last Updated: March 21, 2025
- Panos Mekras states that all XRP supply has been in circulation since 2012.
- He asserts XRP was designed to disintermediate financial institutions, not for banks.
- Investors voice frustration over price stagnation and evolving XRP utility narratives.
Crypto author and Anodos Finance co-founder Panos Mekras has addressed a widespread misconception regarding XRP’s circulating supply and its original purpose. In a recent tweet, Mekras clarified that all 100 billion XRP were created and released in 2012 during the XRP Ledger’s (XRPL) launch, with no subsequent inflation or additional tokens minted.
Understanding XRP’s Circulating Supply
Mekras emphasized that the XRPL—unlike Bitcoin—does not rely on mining or Proof-of-Work (PoW). Instead, its three core developers (David Schwartz, Arthur Britto, and Jed McCaleb) distributed XRP via a Genesis wallet, allowing open claims. Later, Ripple Labs (then OpenCoin) facilitated giveaways, airdrops, and faucets to broaden distribution.
Initial Distribution and Escrow Implementation
By 2017, Ripple locked most of its remaining XRP into escrow to mitigate sell-offs and price volatility. Mekras criticized CoinMarketCap (CMC) for excluding Ripple’s escrowed tokens from circulating supply calculations while ignoring similar user-held escrows.
Mekras’ Key Argument:
"All XRP has been in circulation since 2012. If escrowed XRP is excluded, all escrows—not just Ripple’s—should be treated equally."
👉 Learn more about XRP’s distribution history
Investor Concerns and Community Reactions
Investors expressed skepticism about XRP’s future, with one questioning its potential to reach $10 amid conflicting adoption narratives. Others noted Ripple’s bank partnerships as contradictory to Mekras’ claims. Critics also accused Ripple of leveraging XRP primarily for funding, delaying tangible utility.
Mekras’ Rebuttal: XRP’s True Purpose
Mekras countered that XRP was never intended for banks, blaming influencers for perpetuating misleading narratives. He attributed the misconception to Bitcoin maximalists and certain XRP advocates, arguing it harmed adoption.
Related Developments:
- Ripple’s partnerships and their impact on XRP’s perception.
- Legal challenges and regulatory clarity’s role in XRP’s market performance.
👉 Explore XRP’s utility in modern finance
FAQ Section
Q: Why does CoinMarketCap exclude Ripple’s escrowed XRP?
A: CMC’s methodology considers these tokens temporarily inaccessible, though critics argue this unfairly skews supply metrics.
Q: Was XRP designed for banks?
A: No—Mekras asserts it aimed to disrupt financial intermediaries, not serve banks.
Q: What’s the impact of escrow on XRP’s price?
A: Escrow reduces sell pressure, but inconsistent accounting may mislead investors about actual liquidity.
Conclusion
Mekras’ critique highlights ongoing debates about XRP’s supply transparency and intended use. As adoption narratives evolve, clearer metrics and communication are essential to restore investor confidence.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.
### Keywords:
XRP circulating supply, CoinMarketCap critique, Ripple escrow, XRP utility, Panos Mekras, XRP adoption, XRPL distribution, cryptocurrency transparency
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