google-site-verification=RoadygaH2N3jsP-zBochCrn0ABtnedK76rnS7kMfyOU
Take a fresh look at your lifestyle.

“XRP will have lower performance this year,” according to Mike Novogratz

0


XRP is the third largest cryptocurrency by market capitalization. However, according to Galaxy Digital CEO Mike Novogratz, this one will have another dull year in 2020. Moreover, he blamed Ripple for what he considers to be the unflattering prospects of XRP.

All this was in the framework of the national LINC 2020 conference of TD Ameritrade in Orlando, Florida, last week. At the end of the discussion, Novogratz answered the questions of the Registered Investment Advisors (RIA) audience.

The last question was about his opinion about XRP. “Ripple the company owns 60 billion XRP,” Novogratz began. “That’s a lot”. The total amount of this cryptocurrency in circulation is 100,000 million.

Novogratz maintains its position with respect to XRP, even with the close relationship that its company has with Ripple
Novogratz maintains its position with respect to XRP, even with the close relationship that its company has with Ripple

However, Mike Novogratz compared XRP with a situation in which a company continually sells its shares. “When I buy a stock, if I know it is selling $ 10 billion – at some price – of its value, it makes me less enthusiastic to buy the stock,” he said.

XRP’s analogy with actions is a particularly sensitive issue for Ripple. For the past two years, Ripple has been fighting a class action lawsuit that claims that XRP is an unregistered value. The case is still ongoing in the United States District Court for the Northern District of California.

In 2019, XRP lost 46.3 percent of its value. At the Orlando conference, Novogratz suggested that the trend may continue.

Ripple responds

What makes this comment so scathing is that Ripple is the largest shareholder of Galaxy Digital in another company. Mike Novogratz’s company has invested $ 23.8 million in Ripple and valued the stake at $ 27.6 million as of September 30, 2019, according to public records.

“XRP is a digital asset,” Breanne Madigan, Ripple’s vice president of global institutional markets. “It is not an action because it does not give you any participation in Ripple or any other company. Second, XRP has a legitimate utility for payments. Companies like MoneyGram, Bitso and others are using XRP in production through RippleNet’s Demand Liquidity (ODL). ”

The company also drastically reduced its quarterly sales of programmatic XRP last year, from $ 251 million in the second quarter to none in the fourth.

“These statements make it clear that Mike does not understand how Ripple handles his participation in XRP and did not take the time to read what we make available to the public every quarter,” Madigan said. “The increase in the circulating supply of the Ripple distributions of XRP is actually smaller than the increase in the circulating supply of BTC, BCH, ETH, etc.”

What does XRP have in its favor?

At the Orlando conference, Novogratz contrasted what he characterized as the most centralized configuration of XRP with that of Bitcoin. This is attributed to the form of Bitcoin mining.

However, Ripple maintains that its network is more decentralized than that of Bitcoin or Ethereum, according to Messari data. Even Ripple executives claim that there are more than 150 known validators in the XRPL that require an 80% consensus to confirm transactions.

So far, the XRP has shown impressive returns in 2020. Prices have increased almost 27% since January 1 compared to, say, the S&P 500, which has been almost unchanged so far this year. However, if one were to object, XRP in fact had a yield lower than 29% of the Bitcoin rise.

Therefore, we should weigh Novogratz’s claims to ensure transparency in the information given. Also, it is part of the investors to see the full photo. After all, in the world of cryptocurrencies there is nothing guaranteed or absolute truths.

The following two tabs change content below.

Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.



Leave A Reply

Your email address will not be published.