CEO of Elpis Investments – Anatoly Castella, for Express.co.uk has warned investors to miss out on XRP as it is not a digital currency and should not be labelled as a real crypto – according to the CEO.
XRP in the Market
During the last bull-run, with BTC/USD making it about the $7,500 important mark, XRP followed as most altcoins and reversed to $0.50. But, if Mr. Castella’s predictions turn true, things could look very bleak for the speedy token.
Last week, rival bitcoin recruited another billionaire believer from the world of mainstream finance after it was revealed that investor Steven Cohen has placed money into a hedge fund focusing on cryptocurrencies and blockchain-based companies
Autonomous Partners – a hedge fund that is purchasing cryptos and equity in firms that are blockchain-connected. But, XRP is one that AP is deviating from. Which is why many believe that the token will be taken care of differently when regulations come.
“If the SEC categorises ripple as a security, we will experience in the short term a big dip in its market value. In the long term it will simply become a digital asset owned by institutional investors. – Anatoly Castella.
In the event that SEC decides to name the tokens securities then they will undergo different laws than other crypto-tokens.
Castella continues with supporting the idea that XRP delivers different characteristics than real cryptocurrencies.
“It should be considered ‘Digital Fiat’, not a cryptocurrency.”
According to Mr. Castella, for cases like XRP [by his “Digital Fiat” believes] the commission should put on the table the idea of creating different regulatory framework for Digital Fiat, so it does not hurt pure cryptos.
“This will ensure that ‘real’ cryptocurrencies like bitcoin will not be damaged and misunderstood by these start-ups adopting the wrong regulatory approach from the outset.”
He said: “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, you were sending a store of value to another account – for payment for goods and services.