Mike Alfred, a venture investor and formerly a founding CEO at BrightScope and Digital Assets Data, has sparked a discussion in the cryptosphere with his forecast that Ripple-promoted cryptocurrency XRP would remain depressed below $1 even if Bitcoin (BTC) happens to hit $250,000 record highs.

“XRP Only Exists To Enrich Founders & Insiders”

In a March 1 post on X, prominent investor Mike Alfred suggested that XRP is a scam, though not “outright” like Richard Heart’s Hex. According to Alfred, XRP and Hex have very similar mechanisms.

This conclusion stems from his belief that XRP, used in Ripple’s payments network, “only exists as a token printing scheme to enrich the founders and insiders”. This incessant printing has, per the value investor, suppressed the price of XRP for the past 7 years. “Real utility is a mirage,” Alfred summarized.

XRP is used as a bridge currency to reduce friction in areas like cross-border payments. Ripple’s On-Demand Liquidity (ODL) service, in particular, uses XRP, allowing customers to transfer funds internationally relatively faster and cheaper.

Alfred’s grim prediction comes on the heels of a protracted legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC) that has weighed heavily on XRP price since it was initiated in December 2020.

XRP Price Stuck Under $1 As Bitcoin Nears All-Time High

XRP has been dragging its feet as the industry’s benchmark cryptocurrency soared past the remarkable $62,000 milestone. While other altcoins have ridden on the coattails of BTC’s latest upswing, the price of XRP refuses to budge. At press time, XRP was changing hands for $0.5939, a 0.3% drop on the day.

The token has endured many hurdles, mainly due to a regulatory cloud hanging over it. The next key resistance for XRP is at $0.85, a region previously tested when the cryptocurrency spiked in mid-July 2023 after Ripple’s earth-shattering win against the SEC. If XRP breaks past the $0.85 level, the coin’s holders can expect further gains.

Meanwhile, the price of Bitcoin is on track to reach its current lifetime high on the back of the roaring success of U.S.-based spot BTC exchange-traded funds (ETFs). At current levels, BTC needs to gain around 10.2% to recapture $69,044. Moreover, hopes are high that Bitcoin could reach $100,000 by June, roughly two months after the miner rewards halving event.

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Filed under: Bitcoin - @ March 1, 2024 10:12 pm