Ripple’s CEO, Brad Garlinghouse stated earlier today that the influence of Bitcoin over cryptocurrency prices will end soon. This is because of the increasing knowledge of different use cases for cryptocurrencies.
Garlinghouse spoke on CNBC’s Power Lunch today about the XRP token and its price. Even as the correlation of price between Ripple’s XRP and the price of Bitcoin exists, he said:
“There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies. It’s early, over time you’ll see a more rational market and behaviors that reflect that.”
This is in line with what Ripple is trying to achieve in the cryptocurrency space. It is fundamentally different from Bitcoin, Ethereum, and other altcoins, and is focused on solving problems in moving value across the world.
Ripple suffered the most from the bubble pop in January this year. From an all-time high of $3.75, the coin has not ceased its sideways movement. This is in conjunction with the price of Bitcoin, which traded at close to $20000 at the beginning of this year.
On this, Garlinghouse said:
“It’s still a nascent industry, the speculation in the market dominates the trading activity. I think it’s a matter of time until people better understand the different use cases.”
He also spoke about the various different cryptocurrencies in the world today, and how 99% of them won’t exist in the coming years. He further explained that the cryptocurrencies in the market that don’t solve a real problem will not last and that they would be “washed out”.
Regulatory authorities like the SEC have been moving on scams and fraudulent ICOs, as they constitute unauthorized securities. The digital assets offered by the companies directly translate to a stake in the company. On this, Brad said:
“The SEC is getting involved as they should because there have been frauds committed. We have been an advocate of yes the government should get involved, the government should be protecting investors and companies but there’s also examples of real utility.”
He also made it clear that the XRP token is not a security, saying:
“If you own XRP, you don’t own rights to the profits or any dividends to the company. XRP has real utility.”
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