Ripple Lab “Execution” Rating Update (Oct 2019)

SVET
2 min readOct 25, 2019

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Ivan Aivazovsky

Ripple financial statements are unavailable for public scrutiny but this company regularly publishes on its site, the so-called, “XRP Markets Report”, which reveals that it “sold $169.42 million of XRP in Q1”. That might indicate (speculative assumption) a quarterly cash-flow deficit, which Ripple needs to periodically re-finance on the open market. This amount seems to be quickly growing (in Q4 2018 it was $129.03 mio and showed an increase of 24% in the next quarter).

Initially, Ripple received about $94 million from its seed investors in two main rounds but since then no more additional rounds have been announced, which seems to confirm that, allegedly, still unprofitable Ripple business is financed mostly from the pockets of XRP holders in an amount exceeding $600 million a year. That makes Ripple very vulnerable to the market fluctuation (“Equity”: b-).

On the other hand, according to Ripple announcements it has already acquired more than 200 customers (selling its core product, xCurrent) and is active in 40 countries, which seemingly shows a viability of company’s business model However, with a technology which is relatively easy to replicate it’s not particularly clear how really competitive Ripple will be in a future, when challenged by larger corporations, which also might decide to join the party (“Solution”: b).

Ripple has a very large team (for a DLT company) of permanent employees — nearing 500 people according to multiple sources. The management of this company has proved itself highly capable and its PR / Marketing department is, imho, one of the best in our industry. However, Ripple team is not recognized for its technical expertise (might be because Ripple core product is aimed at corporate world not at private consumers consumption). “Team”: a-

Ripple Labs, Inc is headquartered in San Francisco, California, U.S. but its official registration information is unavailable. However, I do not have any real reasons to question Ripple’ legal “Validity” and set it to “a-”.

‘Execution’ sub-rating (Solution- Validity- Equity- Team): ba-b-a-

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