​Valhil Capital experts value XRP at 4208010% more than the market value

What’s new? Jimmy Vallee, managing director of the venture capital company Valhil Capital, and Molly Elmore, Blockchain Businesses CMO, published two-year research on the Ripple payment protocol. The goal of this work was to determine the fair market value of the native token XRP using six valuation models. The study found that the figure ranges from $3500 to $22 000. As of June 8, 12:55 UTC, XRP is trading at $0,5228, down by 0,97% in 24 hours, according to Binance.

Valhil Capital’s research

What else does the research say? Elmore shared a document on her Twitter account titled “A Comprehensive Approach To Determine The Fair Market Value Of XRP,” which was prepared by an extensive “confidential committee.” It includes variables such as the global transaction volume, their daily value, and the circulating supply of XRP.

What is the fair market value of XRP?This question is more complex than it sounds, and led a small group of people on a nearly 2 year journey, picking up more along the way to support the effort.🧵 A thread about our whitepaper to determine the Fair Market Value of XRP. pic.twitter.com/SSb9q5liXG — Molly Elmore (@mollyelmore22) June 7, 2023

The study also seeks to uncover the damaging effects of the US Securities and Exchange Commission’s (SEC) lawsuit against Ripple. In 2020, the regulator accused the company of selling XRP as an unregistered security. Ripple CEO Brad Garlingauchs said in May of this year that the proceedings would end in the next few weeks.

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The SEC lawsuit was followed by a chain reaction of sell-offs and delisting, which significantly impacted the price of XRP. Vallee noticed certain elements in the case that caused skepticism about the true intentions behind the lawsuit.

In response to these developments, Valhil sent an offer to the US Federal Reserve System (Fed) to sell its XRP at a price above the current market value. The move was intended to highlight the potential existence of “regulatory capture” and generate a discussion about its consequences.

This raised questions about the financial damage caused by the SEC’s lawsuit and the obstacle it creates to the adoption of XRP’s intended use case, which led Valhil to engage in a search for a fair market value for the asset.

Valhil formed a confidential committee to investigate further. In late 2022, a narrower quantitative and financial valuation committee was formed.

Fair market value is the estimated price of an asset based on various factors, including market conditions, supply and demand, and other relevant aspects.

Elmore explained that the estimates derived from the six models are not predictions of future XRP prices, but rather assumptions about what the price of the asset would have been if the SEC lawsuit had not occurred.

The results of the valuation models show that, excluding outliers, the fair value of XRP ranges from $3500 to $22 000. The lowest price is 669 372% higher than the current price, and the highest is 4 208 010% higher.

This result underscores the significant impact of the SEC lawsuit, as numerous institutions that potentially could have used XRP were forced to refrain from doing so in order to reduce legal risks.

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The Federal Reserve Bank of Atlanta previously called XRP an “international payment medium” in its review. However, the document does not explicitly say that the regulator plans to use the cryptocurrency for payments.