XRP Has No ‘Underlying Utility’ and There’s No ‘Confidence’ It Will Last: Anthony Pompliano

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XRP Has No ‘Underlying Utility’ and There’s No ‘Confidence’ It Will Last: Anthony Pompliano
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Popular Bitcoin proponent and Morgan Creek Digital co-founder Anthony Pompliano is known in the cryptosphere as very bullish on Bitcoin. While he speaks periodically with a more pro-crypto agenda, he recently did not have very good things to say about XRP. Basically, Pompliano is pro-crypto but not very bullish on XRP.

In a conversation with Julia Chatterley on CNN’s First Move, Pompliano says that the “disjointment” between the Ripple company and the XRP token makes it difficult to be a part of the community.

Pompliano first points out that many XRP retail investors have convinced themselves that owning XRP helps them become a part of Ripple. He says that these investors believe that their XRP portfolio gives them some access to Ripple’s financial performance. This, he says, is “obviously not true.”

He then emphasizes more on the difference between the two entities. Basically, Ripple’s success will not affect XRP in any way, and vice versa. Ripple is known to be striving hard to bite a large chunk of the cross-border remittance business worldwide. However, the fact that the two are separate means that XRP, at least in theory, could plunge even if Ripple succeeds. This also means that “XRP could go up in value and Ripple could go out of business.”

Ripple CEO Brad Garlinghouse has previously highlighted this difference between the company and XRP. Speaking with CNBC in January, Garlinghouse said that if Ripple suddenly shuts down, XRP will keep going as it is “an independent open source technology.”

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Describing the disjointment as a problem, Pompliano suggests that he needs some assurance that this separation cannot give him. He also says the same for assets with a “similar mechanism.”

“What ends up happening is I as an investor actually wants to hold equity in the software company because there’s profit, assets, revenues, etc. I don’t want to own the asset that may or may not be there in the future and doesn’t have any underlying utility or value driver that I can point to and say, ‘I have confidence that’s going to last.”

Pompliano also spoke on Bitcoin and why it is better than digitized fiats. He says that fiats that are digitized still run with the same monetary policy in place from before the digitization. According to him, this policy cannot be trusted over that of Bitcoin.

Confirming his position as one of the most devoted Bitcoin disciples, Pompliano also mentions that he still keeps half of his net worth in Bitcoin.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.