Analyst Says XRP Has Moonshot Potential, Warns Third-Largest Cryptocurrency Is Facing One Major Hurdle
Portfolio manager and crypto influencer Mati Greenspan is expanding on his outlook for Ripple and XRP.
Greenspan recently said he thinks Ripple’s monthly sales of XRP hurt the digital asset’s price in 2019.
In his latest letter to investors, Greenspan says he thinks Ripple’s ODL, which is designed to give enterprises a way to utilize XRP for cross-border payments, could have a huge impact on the price of XRP if it gains widespread adoption.
Although he thinks Ripple has a “real chance” of pulling that off, he cautions that the odds of ODL’s success remain stacked against the San Francisco startup.
“Yes, we can see XRP gaining traction and they do have first mover advantage in this space. However, it does seem more likely that a coin created by banks, for banks, would be favorable to most large financial institutions. As I see it, investing in XRP is a moonshot. There is a real chance that Ripple accomplishes their goal of becoming the backbone of global settlements. If they do, then there’s a fairly good chance that XRP will rise in value.
However, there’s an even greater chance that they don’t. That some competitor grabs their win. Or that CBDC’s become widespread and efficient enough that they don’t need a middleman. Which is why we need to always be cautious when dealing in high risk assets.”
Payments giant and Ripple partner MoneyGram remains the most high-profile user of ODL.
CEO Alexander Holmes says 10% of the company’s volume between the US and Mexico utilizes Ripple’s liquidity product, and that MoneGram is expanding its use of the payment solution to four new corridors.
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