Peter Brandt is one of the most followed traders on Twitter. Notably, the 40-year market stalwart does not shy away from criticizing Ripple and its native cryptocurrency, XRP. He recently compared holding Ripple’s XRP to the risk of holding the US dollar.
XRP Can Be Compared To The USD — Brandt
In a tweet on July 24, Brandt posited that all paper currency will ultimately become obsolete and the global financial system will be tokenized possibly in a way that has not yet been seen. He further noted that he disagrees with crypto enthusiasts who believe their favorite cryptocurrency will take the crown.
Twitter users suggested various coins including XRP. One XRP enthusiast, in particular, postulated that quantum computers can make cryptography obsolete but XRP is already quantum resistant. Another user asked for the link to this information as he believes the XRP army is fond of shilling the coin without providing any evidence to back their claims.
In response, Brandt said XRP can be compared to the US dollar. He explained that the Federal Reserve is the USD bag holder and it has the power to increase its supply as it pleases. Similarly, Ripple is XRP’s bag holder and it “will” increase XRP’s supply. With that being said, Brandt “cannot believe the number of otherwise smart people who have drunk XRP cool-aide.”
For perspective, the Federal Reserve is exercising power like never before to save the US economy amid the COVID-19 crisis. The Fed has printed an absolutely insane amount of money so far, as crypto strategists warn this will have dire consequences on the economy in the long run. According to Brandt, this money printing basically makes the central bank the USD bag holder.
Ripple currently owns more than 50% of the total XRP supply. The San Francisco-headquartered fintech firm unlocks one billion XRP from the escrow wallet at the beginning of every month which it sells to exchanges, institutions, and other third parties. Per Brandt, Ripple is the XRP bag holder which means XRP is at the whim of the firm.
Not Much Of An XRP Fan
If you haven’t guessed by now, Peter Brandt is not a fan of XRP. Just last month, Brandt observed that XRP was headed for a 90% drop after losing a key level. His exact words were:
“Looks like Ripple Labs has blown the wad allocated to support XRPBTC at .00002060 to .0002075 levels. If ice-line cannot be reclaimed, look for new support at .0000194 on way to .0000145.”
Brandt is also of the opinion that XRP’s collapse is already underway as the asset is “a manipulated scam”.