Yesterday, it emerged that Bitwise and Morgan Creek had partnered to start a crypto fund, and it doesn’t include XRP. Their reason is that ripple holds a significant portion of XRP (XRP), which creates an additional risk as opposed to the more decentralized cryptocurrencies that they have in their portfolio. Their other reason is that XRP has some legal issues surrounding it, which makes it an even bigger risk, in case the SEC declares it a security.
For an XRP investor, this might come across as a little confusing, since it creates doubts about the future of XRP. However, it really shouldn’t be a reason to doubt it as an investment. That’s because most of the issues surrounding XRP (XRP) will most likely turn out well in the end. For instance, if you look critically at the whole issue about its status, there is really no possibility of it being declared a security.
It is as decentralized as any of the other cryptocurrencies. That’s because most of the XRP validators are non-ripple. This means that ripple has no control over the XRP ledger, and even if they wanted to make any changes, they would not be in a position to achieve such ambitions.
About the issue of ripple holding a majority of XRP (XRP), the company has stated in the past that they intend to offload it to financial institutions looking to use XRP as a liquidity tool. This will happen gradually, and should be complete in about 4 years. As such, ripple holding a majority of XRP may not be as disadvantageous as most critiques believe it to be.
If anything, it enables the further adoption of XRP by the banking industry, thereby driving up the value of XRP in the long-run. On top of that, in a few years, this control will be gone, and XRP will already have gained widespread acceptance in the global finance industry, and become the standard for cross-border payments.
In essence, for someone willing to do their own research on XRP, you would realize that it makes for a perfect long-term hold. Yes, it might go through turmoil in the short-term, but in the long run, XRP will without a doubt emerge at the top of crypto rankings. Its use case is already taking shape as more financial institutions begin testing it.
Just the other day, it emerged that American Express could be one of the companies looking to test XRP, as a tool for enhancing efficiency. It is just one in a long list of financial institutions taking up XRP all across the world. These institutions would not be adopting XRP if it was doomed to fail in the long-run.
As a matter of fact, no other cryptocurrency is anywhere close to XRP in terms of adoption. Logically, this makes it a safe bet for a long-term hold, in a market that is still young and developing, with little certainties on which cryptos will succeed.