Elpis Investments CEO Anatoly Castella, for Express.co.uk, warned investors to take a close look at Ripple (XRP) as he believes the coin is not a digital currency and should not be labeled as a real cryptocurrency.
XRP in the market
During the last bullish rally, when the BTC / USD pair reached $ 7500, XRP followed most of the altcoins and crossed the $ 0,50 mark. But, if the predictions of Mr. Castella are confirmed, everything can look very gloomy for the coin.
Last week, Bitcoin scored another billionaire from the world of core finance after it turned out that investor Stephen Cohen placed money in a hedge fund, focusing on cryptocurrencies and companies based on the blockchain.
“If the SEC classifies Ripple as a security, we will experience a significant drop in its market value in the short term. In the long run, it will simply become a digital asset owned by institutional investors – Anatoly Castella.
In the case when the SEC decides to call securities tokens, they will be subject to different laws than other cryptocurrencies.
"I have a lot of concerns about the level of centralization and there are regulatory issues if what they've released is security." — Arianna Simpson, Autonomous Partners.
Castell continues to support the idea that XRP has different characteristics than real cryptocurrencies.
“Ripple should be considered a“ digital fiat ”, not a cryptocurrency.”
According to Mr. Castella, “Ripple is no match for BTC or ETH. When Bitcoin was originally created, it was created to store value. When you created a transaction, you sent a vault of securities to another account - to pay for goods and services.