Expert says Ripple’s XRP is ‘not a cryptocurrency’, warns of big price drop
The debate of whether Ripple’s XRP is a security or not is still on. The SEC verdict is approaching, and the community is eagerly waiting for clarity. Amidst all this, the CEO of Elpis Investments, Anatoly Castella, has told Express.co.uk that Ripple’s XRP is neither a “Digital Fiat,” nor a “real” cryptocurrency.
Cohen Private Ventures has invested in Autonomous Partners — a new hedge fund buying cryptocurrencies and equity in blockchain-related companies. However, it is to be noted that Ripple is missing from the list of coins in which Autonomous Partners is interested. This has raised concern among the token holders.
In fact, Castella said, “If the SEC categorises ripple as a security, we will experience in the short term a big dip in its market value. In the long-term it will simply become a digital asset owned by institutional investors.”
Castella further adds that XRP doesn’t fall under the “purest interpretation of ‘cryptocurrency’.” According to Castella, “Ripple resembles a fintech platform combining the best elements of fiat money and Blockchain cryptocurrency.”
SEC authorities have declared that Bitcoin and Ethereum aren’t securities, the SEC has given guidelines. These guidelines describe how they assess each cryptocurrency’s financial nature. A coin that started via an ICO could be considered a security, while others will be considered equivalent to fiat currency.
Castella says that the SEC should create a regulatory framework for ‘digital fiats’ such as Ripple and also a sustainable ecosystem for the “crypto startups”. He further explained that it would help the real cryptocurrencies such as Bitcoin. It will ensure that the real ones are not damaged and misunderstood by the start-ups who are adopting wrong regulatory approach from the outset.
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