Chris Larsen, the co-founder of Ripple, is a man of few words. The last time he tweeted was on Oct 17 when he was proud to support Thorn, a non-profit building tech headed by Julie Cordua. 35 days later, he is now defending Ripple Works and by extension XRP, against what supporters say is unnecessary FUD perpetuated by Messari.
Chris Larsen: We Support Social Ventures
Chris is now clearing the air. Taking to Twitter, he says Ripple Works, a non-operation foundation, has, contrary to Messari claims, disbursed more than $25 million to different social ventures, helping alleviate poverty in countries such as Nigeria, Senegal and Myanmar.
He further explains that Messari refers to wrong data and that after the rally of late 2017, Ripple Works was re-classified as a non-operation foundation under US laws. As a 501(c)(3) Foundation, Ripple Works doesn’t offer material support but consultancy through experts affiliated with the organization.
Because of this, the cost of consultancy services would basically fall under the charity’s administrative costs. And it reflects.
Messari: Ripple Works is a Corporate and Executive Tax Shelter
On November 20, the founder of Messari, Ryan Selkis, published a bombshell report accusing Ripple Inc, a for profit company, of using Ripple Works, a charity foundation, as a shield against tax agencies and misappropriating funds to the tune of millions for Ripple insiders.
Ryan says that although Ripple Works claims to be a charity, it is failing to remit stipulated grants to charities which is bad for prices since the Ripple Treasury and insiders have a leeway to liquidate, depressing XRP prices.
He cites readings from the 2018 financial year which showed that out of the $1.2 billion under Ripple’s management, no monies were granted from the charity foundation associated with Chris Larsen and Ripple as the foundation incurred non-tax expenses totaling $2 million out of the $300 million revenue.
Circulating XRP isn’t Representative of True Market Cap
This disparity was enough reason, according to Selkis, to justify that there was a high probability that Ripple Works was a vehicle, sheltering Ripple from corporate and executive tax. Ryan is also convinced that the 2.2 billion XRP coins claimed to be in circulation but is obfuscated and locked in long-term selling agreements.
Earlier, Messari had accused Ripple of overstating their market capitalization by 48%, a claim that riled the XRP Army.