In quality of investor, I always recognised the importance of fundamental analysis in every investments I did , crypto included.
Of course without numbers like financial statements and its historical datas I feel this analysis quite incomplete because without them it’s quite impossible to do a financial valuation, but using some tools that in general are used for valuing projects we can understand the importance of Ripple and why in my opinion it is a valid long term projects.
These are the metrics :
1) lean startup principles: it’s a methodology for developing business and it aims to develop a products or services in a way it solves a problem for a certain segments of the market. The larger the market the bigger the potential for the startup.So, which problem does Ripple solve ? Ripple speed up payment processing cross border payments in a fast way , reliable and cheap. It enable fully payments in 4 second while traditional payment system can take some days. This is a problem that everyone recognise and at minimum 50 to 70 per cent of business across the world. The potential is huge.Is there sign of product market fit ? Ripple is building a decentralised network of financial institutions called Ripple net and it is active in over 40 countries across six continents. The answer is yes, there is a product/market fit. This is the must challenge that any startup faces, also every crypto startup that has a cryptocurrency.
2) Adoption : In term of customer growth Ripple has seen an average growth of 2 new production customers per week in 2018 and in early 2019 an average 2-3 news customers signed up on Ripple’s network. The adoption rate is accelerating.
3) Scalability: Xrp can handle 1500 transaction per second, 24 hour a day, seven day a week , 52 week a year and can scale to handle the same throughput as Visa.Competitors : Ethereum 15 transactions per second, Bitcoin 3-5 transactions per second and Stellar 1000 transactions per second.
All these features make me conclude that Ripple is a solid long term investment because of adoption prospects . A large number of financial institutions globally are adopting Ripple and this creates credibility among investors.
Now Guys, draw your conclusions.