Ethereum, XRP, and other Altcoins yet to be fully proven
Many cryptocurrencies, including the likes of Ethereum and XRP, are still in the 'proving' phase, according to Mike Novogratz. He has also stated that these coins aren't going 'to succeed as solely a store of value as Bitcoin has taken that lane'.
Whilst Bitcoin (BTC) is already a hard asset, having found its place as 'a weapon in macro portfolios as digital gold', writes Novogratz in a Twitter thread. Other cryptos are venture bets that will inevitably obtain lasting value only if they become a useful product.
XRP has its own strong community, mostly found in Asia, but also has a large supply of around 57% to absorb. The price of the third coin by market capitalisation will be ultimately determined like all prices - it will rise if there are more buyers than there are sellers.
Novogratz apparently wanted to address a fairly controversial occurrence from recent news published by Coindesk - which claims to have obtained a recording from TD Ameritrade's National LINC 2020 conference, in which he allegedly said to a group of financial advisers that RIpple owns 60 billion worth of XRP, and compared the coin to a situation where a company continuously sells its own shares. He also suggested that Ripple will underperform this year: 'When I'm buying [a] stock, if I know [someone is] selling USD 10 billion-worth of it at the same price, it makes me less excited to buy the stock', he allegedly commented.
As was noted back in January, Ripple reduced sales of XRP from its escrow fund last quarter, after it secured USD 200 million in funds.
Brad Garlinghouse, CEO of Ripple, responded to these claims on Twitter, where he pointed out Novogratz's past inaccurate predictions:
Expanding further on his point. Novogratz said in his thread that he made a comment on XRP underperforming BTC last year 'because Ripple owns a lot of them, I have been almost solely long BTC for the past 15 months'. He continued by saying that this year the broader altcoin market, including XRP, has outperformed Bitcoin. In the past 30 days, for example, ETH is up 45%, XRP by 28% and BTC down -22%.