XRP is the third largest criptomoneda by market capitalization. However, according to the CEO of Galaxy Digital Mike Novogratz, this will be another year of lacklustre in 2020. What is more, he blamed Ripple for what you think are the prospects unflattering of XRP. This was all in the framework of the national conference LINC 2020 TD Ameritrade in Orlando, Florida, last week. At the end of the discussion, Novogratz responded to questions from the audience of Investment Advisers Registered (RIA). The last question was about your opinion on XRP. “Ripple the company owns 60 billion XRP”, began Novogratz. “That is a lot.” The total amount of this criptomoneda in circulation is 100,000 million. Novogratz maintains its position with respect to XRP, even with the close relationship that has its company with Ripple, however, Mike Novogratz compared to XRP with a situation in which a company sells continuously their actions. “When I buy a stock, if I know who is selling 10,000 million dollars-a price – of its value, makes me less enthusiastic to buy the stock,” he said. The analogy of XRP with the actions is a subject particularly sensitive to Ripple. In the past two years, Ripple has been fighting against a class-action lawsuit argues that XRP is a value not registered. The case is still ongoing in the District Court of the united States for the Northern District of California. In 2019, XRP lost 46.3 percent of their value. At the conference in Orlando, Novogratz suggested that the trend may continue.
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Ripple responds
What makes this comment is so poignant is that Ripple is the major shareholder of Galaxy Digital at another company. The company Mike Novogratz has invested 23.8 million of dollars in Ripple and valued the participation at us $ 27.6 million as of September 30, 2019, according to public records. “XRP is a digital asset”, Breanne Madigan, vice president, Ripple of institutional markets global. “It is not an action because they do not give you any participation in Ripple or in any other company. Secondly, XRP is a utility for legitimate payments. Companies such as MoneyGram, Bitso and other are using XRP in production through the Liquidity Demand (ODL) of RippleNet”. The company also drastically reduced its quarterly sales of XRP programme in the past year, rising from 251 million in the second quarter to nil in the fourth. “These statements make it clear that Mike does not understand how Ripple handles your participation in XRP and did not take the time to read what we offer to the public each quarter,” said Madigan. “The increase of the supply current of the distributions of Ripple XRP is actually smaller than the increase in supply current BTC, BCH, ETH, etc”.
What you have XRP in your favor?
At the conference in Orlando, Novogratz contrasted what he characterized as the configuration more centralized XRP with Bitcoin. This is attributed to the way of mining Bitcoin. However, Ripple maintains that their network is more decentralized than Bitcoin or Ethereum, according to data of the Messari. Even, the managers of Ripple’s claim that there are more than 150 validators known in the XRPL that require an 80% consensus to confirm transactions. Until now, the XRP has been shown to yield impressive by the year 2020. Prices have risen nearly 27% since January 1, compared with, 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 performance lower than the 29% of the rise of Bitcoin. Therefore, it would have to weigh the claims of Novogratz to ensure transparency in the information that is given. Also, it is on the part of investors see the full picture. At the end of the day, in the world of cryptocurrencies there is nothing guaranteed, nor absolute truths. The following two tabs change content below. A degree in Liberal Studies from the Metropolitan University. Lover of innovation and a believer of the technology for the future.