An Expert says XRP is Not a Real Cryptocurrency
July 21, 2018 1:29 pm
The cryptocurrency industry still faces arguments over XRP whether it is a security and it has remained as a famous debate. But, now an expert said XRP is not even a “real cryptocurrency,” and SEC will be issuing its official statement whether it considers XRP as security.
The Ariana Simpson-led hedge fund doesn’t invest in XRP tokens. Steven Cohen said he would invest in a cryptocurrency-based hedge fund.
“I have a lot of concerns about the level of centralization there, and I have regulatory concerns if what they have issued is a security.”
XRP is Not a Digital Currency!!!
Anatoly Castella, the CEO of Elpis Investments, said XRP is not a real currency. According to him, XRP does not fit into the “purest interpretation of cryptocurrency.”
“Ripple resembles a fintech platform combining the best elements of fiat money and blockchain cryptocurrency. It is ‘Digital Fiat,’ not a cryptocurrency.”
He also criticized the initial premise behind the Ripple technology describing that it didn’t scale up to the philosophy of real cryptocurrencies like Bitcoin and Ethereum. He spoke about the lack of mining on the network as a significant red flag.
“Ripple has no mining or miners whatsoever. Instead, transactions are powered through a ‘centralised’ blockchain to make it more reliable and faster. XRP was mined all at once by the parent company – Ripple Labs Inc – with a majority of the cryptocurrency held by them.”
He went on stating that XRP has a disadvantage of never in a position for enjoying favorable SEC regulations like Bitcoin and Ethereum. He Predicted that if the SEC classifies XRP as a security, a massive price fall will follow.