Etoro Crypto Analyst Addresses Ripple And Its Digital Asset And Calls XRP A “High-Risk” Coin
Ripple and especially its digital asset XRP have been quite controversial entities over time.
Now, Etoro Senior Analyst Mati Greenspan offers his opinions on Ripple and XRP.
XRP, a high-risk coin?
Greenspan told AMBCrypto that he considers Ripple’s digital asset to be a high-risk coin because of the volatility of the emerging market.
As you all know, this year, the crypto market has been embraced by a bearish trend that did not let go and recently Bitcoin experienced its greatest fall since 2017.
More than that, Greenspan said that XRP’s success is definitely tied to Ripple’s success, especially regarding the great ways in which it is transforming the world of cross-border payments.
“There was a report put out by one of the executives at Ripple who mentioned that there was only a 25% chance of long-term success for this project. So we need to take that into account,” Greenspan said.
He continued and explained “So yes, if it does end up becoming the standard for global payments, then certainly [XRP] stands a lot to rise in value, even in a very short amount of time. However, when you’re thinking about an overall portfolio, you don’t want to risk too much of your equity on something that’s only a 25% chance of coming to pass.”
Awaiting for the SEC’s classification
Ripple is currently hoping that its digital asset can escape the SEC’s classification of a security.
On the other hand, it’s true that XRP’s success depends a lot of Ripple’s managerial efforts, but this might be changing really soon, especially after the announcement involving Omni and Coil which will both facilitate payments in XRP.
Both these firms have strong ties to Ripple Labs as well, but they are separate and independent entities.
This shows better that XRP also depends on the market ecosystem rather than of a single company.