JP Morgan Bets against Ripple’s XRP
JPMorgan lowered hopes for strategic crypto reserve in the world’s largest economy by cautioning that it would be challenging for Ripple’s XRP and other known altcoin assets.
The U.S.-based investment bank cited congressional approval as a major obstacle and emphasized worries about risk and volatility for cryptocurrencies smaller than Bitcoin and Ethereum.
“We don’t think the approval of a strategic crypto reserve is the most likely scenario assuming congressional approval is required”, according to Nikolaos Panigirtzoglou, managing director of global market strategy at JPMorgan.
“The likelihood is therefore less than 50%,” he said. ‘It will be difficult to include them in the strategic crypto reserve because of the risk and volatility would rise of smaller tokens other than Bitcoin and Ethereum”
Cryptocurrencies are fundamentally different from gold, and the dollar, especially the more speculative altcoins. The tokens are mostly determined by hype and speculative sentiment and have no direct industrial use.
XRP, SOL, and ADA are still highly dependent on retail speculation, and their prices are frequently influenced more by hype cycles than by actual adoption. Bitcoin and Ethereum have at least started to become part of mainstream finance.
A lengthy legal battle between the Securities and Exchange Commission over whether XRP is an unregistered security makes it especially contentious. Due to this legal hazard and the coin’s well-known vulnerability to manipulative trading spikes, its inclusion in a sovereign reserve is both politically dubious and economically perplexing.
The CEO of Ripple, Brad Garlinghouse, will be present at the White House crypto summit. Pierre Rochard, a Bitcoin maximalist calls XRP a “worthless token with no investor rights.“.
He stated that such an invitation made it clear Garlinghouse is bargaining behind closed doors with government representatives regarding the future of digital assets.
Rochard complains. “A multi-token approach instead of the bitcoin monoculture” a system where XRP would act as a digital currency messenger
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