The remarkable journey of Ripple from the enigma of $3.40 to the current price of $0.49 could shortly see it encircled by the competing cryptos. The concern about the centralize potential can exclude XRP from entering into the price raising regulatory framework.
Steven Cohen invested money into a hedge fund targeting cryptos and blockchain firms previous week. After this news, Bitcoin enlists another billionaire from the mainstream finance.
Cohen Private Ventures has funded in Autonomous Partners- newly hedge fund buying cryptos and value in blockchain-based firms. This is due to the mainstream finance starts searching for the “next generation” of investments in the digital era.
However, Ripple is one noteworthy lacking from the technologies series. This is also the coin which interests many Autonomous Partners. Still, the rising concern is “How will the regulations arrival treats the XRP tokens?”
If the Securities and Exchange Commission (SEC) decides that the tokens are the securities. They could be subject to various laws which tokens that are not.
Arianna Simpson from Autonomous Partners told: “I have lots of concerns about the centralization level there, and also the regulatory concerns if what they have issued is a security.”
The CEO of Elpis Investments- “Anatoly Castella” told Express.co.uk that ripple is set to skip as it is neither a “Digital Fiat”, nor a “real” cryptocurrency.
Expert Says “Ripple Is Not A CryptoCurrency”
Castella notifies that Ripple trips scarce of the “purest interpretation of cryptocurrency.”
He added “Ripple resembles a Fintech platform uniting the best elements of fiat money and blockchain cryptocurrency. “It should be considered ‘Digital Fiat’, not a cryptocurrency.”
The possibility of missing out on the regulations and law that goes on to propel cryptos to significant price levels. Mr. Castella mentions that the SEC should deem to create a regulatory framework for “digital fiats” like XRP and an upheld ecosystem for the “digital startups”, currently “held in a state of limbo”.
“This will protect the ‘real’ cryptocurrencies like bitcoin from the damage and misunderstanding by these start-ups adopting the incorrect regulatory approach from the outset.”
Anatoly Castella commends a fundamental variation in how the majority of currencies are built as the key reason behind the likely “big dip” in Ripple’s value.
According to him:
“Ripple cannot be compared to BTC or ETH. When bitcoin was originally created, it was designed to be a store of value. When you created a transaction [….], account for payment for goods and services.”
“Miners created nodes on the network […] this cryptocurrency, either through fees or mining rewards.”
Express.co.uk has approached Ripple Labs for the comment.
Back in June, responding to the centralization questions, Ripple CEO- “Brad Garlinghouse” said:
“I don’t think that our ownership of Ripple gives us control.” He continued: “Saudi Arabia own lots of oil which doesn’t give them control of oil.”
Do you believe that Ripple is not a cryptocurrency? What will the regulations bring for Ripple in the coming future? Let us know your thoughts in the comment section below.
Image Source: Ripple