Christy Ai at Boom Bust: We’re expected to see a major devaluation of Ripple’s XRP asset
In a lasted episode of Boom Bust, anchor Christy Ai, stated that “we’re expected to see a major devaluation of Ripple’s XRP asset”, following a discussion about the company’s IPO announcement.
We’re “expected to see a major devaluation” of Ripple’s XRP assethttps://t.co/2R0mF72VRz
— Tiger Thông (@tigerthong1102) January 27, 2020
Based on Ripple’s generation of financing over the years by selling actual XRP, the IPO may strike a blow against the value of the native cryptocurrency. Recent news commentary raised doubts whether $0.22 was fair value for XRP. Boom Bust Anchor, Christy Ai, asserted that traders are not using XRP for its utility, they’re primarily interested in speculative future gains.
Right now, half the people at XRP they are not using it for the actual utility, they are holding it like an investment. Back when it ballooned to $3, or even now when it’s at $0.22, that value as a utility token, it’s not worth $0.22. So we’re expected to see a major devaluation even though it does have a utility purpose.
This suggested that XRP could be in for a significant price drop if the only thing that’s supporting the asset’s value right now is speculative investors.
Ripple has sold up to $1.22 billion worth of XRP, as a tool to finance its business. On this topic, Ai commented that if Ripple decides to sell shares and go public, “XRP could potentially be worthless…obsolete.” Ai further added investors may be angered by Ripple’s move to also issue shares and go public.
But Jeffrey Tucker, editorial director at AIER, believes it is not so straightforward to estimate the effect on XRP.
I think what they’re actually worth is what they are buying and selling for right now. Anything could happen, XRP could fall to zero but it could also be worth a million dollars… crypto is a complicated technology, it can’t be valued the same way you’re valuing stocks.
Tucker conceded that the asset may hold some speculative interests, just like other digital coins, but it is impossible to predict the future.
For Ripple, the chief idea has been to always try to work alongside with traditional finance, commented Tucker. So an IPO will not be the same as issuing a token that is trading on crypto exchanges.
XRP – the third largest currency by market capitalization – also follows today’s uptrend and is currently trading at $ 0.231. XRP has only increased by more than 1% in the last 24 hours.
- 2020 Prediction: What Will Future Payments Look Like?
- Zhu Min, A Former Deputy Governor Of PBoC Said That Digital Yuan Should Slow It Down