An XRP investor who has been holding the asset for at least three years now took to Reddit yesterday to share why he is now losing confidence in the viability of the Ripple-led crypto project in the future.
No Major Developments For Two Years Now
The Ripple Reddit community is abuzz with a post from a long-time XRP investor who published a detailed post expressing his deep frustration with Ripple and the XRP cryptocurrency.
For starters, he clarified that he was not trying to spread FUD (fear, uncertainty, and doubt), rather he was just reevaluating his XRP investment. The investor then noted that XRP was in fact the very first digital asset he purchased back in 2017 and the solid use case, partnerships and the strong management team at Ripple were some of the things that increased his confidence in the project.
The post further talks about Ripple’s Brad Garlinghouse and David Schwartz promising that dozens of banks would be using XRP as well as Ripple teaming up with major household names, but very little information has been disclosed to the public two years down the line. Per the Redditor, this implies that maybe things are not going according to plan behind the curtains.
XRP’s Main Use Case Has Had No Positive Impact On The Price
XRP’s dismal performance in the past two years is nothing new. The crypto-asset is currently down by over 95% from its all-time high. This disappointingly lackluster performance has especially drawn a lot of criticism from the crypto community.
The Redditor also expressed his discontentment with the price of XRP. In particular, he notes that XRP has a solid use case where it is leveraged for cross-border remittances. The main Ripple payments solution that uses XRP coin, xRapid, was recently rebranded to ODL (On-Demand Liquidity).
Unfortunately, this solution is being used mostly in low-value remittance markets through Ripple’s stake in MoneyGram, contrary to Brad Garlinghouse asserting that it would be used to make cross-border settlements for banks more efficient by completely eliminating the need for dormant capital.
What’s even more appalling for the long-term XRP investor is the fact that XRP’s biggest use case via the ODL has had a negligible impact on the price of the token so far. This is because XRP has failed to convincingly decouple from bitcoin as it still mirrors the top cryptocurrency’s price movements.
Lack Of Major Partnership Announcements Or Developments Eroding Investor’s Confidence
The XRP investor also points out the quiet departure of the Head of XRP Markets, Miguel Vias, that Ripple did not publicly acknowledge. This year, the only big announcements that Ripple has made include the lawsuit against YouTube and the upcoming podcast, he opined.
He concludes by stating:
“The lack of announcements in the past year or so on partnerships, developments, etc. has affected my previously rock-solid confidence in the use case of XRP. Perhaps adoption is not going according to plan, perhaps there are other reasons, but in [the] absence of proper communication, it’s a guessing game.”
Nonetheless, he is not planning to sell his XRP stash just yet but he is “strongly considering” selling earlier than he had initially planned.
Predictably, the disgruntled XRP investor received a boatload of positive replies from the online Ripple/XRP community.
If you can remember, Ripple raised a whopping $200 million in Series C funding late last year led by investment firm Tetragon. The San Fransisco-based blockchain payments firm intends to use this capital to primarily boost the adoption of XRP.
Additionally, Ripple noted in its Q4 2019 market report that the On-Demand Liquidity services registered noticeable growth (a 650% increase to be precise) in that quarter compared to the previous quarter.
XRP is valued at $0.195881 at the time of publication, up by 0.52% on the day. How long the crypto-asset takes to revisit all-time high and whether ODL adoption bolsters its price remain open questions.