Versan Aljarrah, the founder of Black Swan Capitalist and a key figure in the cryptocurrency space, has lent his voice to the ongoing excitement on the significance of XRP ETF. Taking to his X status, he argued that XRP ETF undermines the original purpose of XRP as a bridge currency for global transactions.
While distancing himself from the fervor and perspectives swirling within the cryptocurrency realm, he maintained that they are alarming and misinformed.
Implications of ETF On XRP
According to Versan Aljarrah, the introduction of an ETF would regrettably shift focus away from the cryptocurrency’s transformative potential and toward speculative gains, effectively opening the floodgates for institutional investors to manipulate prices and exacerbate market volatility, echoing the flaws of traditional markets.
Also, it would momentarily obscure XRP’s intrinsic worth, diverting attention from its profound potential to revolutionize global finance. By harnessing XRP’s decentralized architecture, the world’s reserve currency hierarchy could be recalibrated, supplanting the US dollar’s dominance.
Moreover, XRP’s seamless cross-border payment capabilities would optimize liquidity settlement frameworks, rendering traditional systems obsolete. Unfortunately, an ETF would temporarily shift focus toward speculative gains, eclipsing XRP’s transformative value proposition.
Versan Aljarrah stressed the importance of leveraging XRP’s innovative capabilities to revolutionize the monetary system. However, he expressed concern that the prevailing emphasis on speculative trading overlooks XRP’s transformative potential, leaving individuals vulnerable to inflation’s consequences. The expert advocated for a solution-focused approach to drive meaningful change.
Another Expert weighs in
Reacting to Versan Aljarrah’s position on the significance of XRP ETF, Max Avery shared a divergent opinion. He illustrated the widespread adoption of ETFs across various asset classes, citing corn as a prime example.
According to him, just as corn, a fundamental commodity, has an ETF, most substantial assets have a corresponding fund, facilitating investor access and market liquidity.
Far from undermining XRP’s utility, with increased volume from ETFs and institutional investors, more capital will be tied to XRP, which can help stabilize its value. This stability will make XRP more effective for its intended purpose, reducing the impact of large transactions.
With stability in place, XRP will better fulfill its design purpose, dampening the price volatility that often accompanies sizable transactions and ensuring more reliable and efficient cross-border payments.
While agreeing with Avery’s opinion, Versan Aljarrah corroborated that many prominent assets, including corn and other essential commodities, have become integral to the ETF landscape.
However, he argued further that, unlike other cryptocurrencies, XRP’s fundamental purpose transcends speculation. What sets XRP apart is its core design as a bridge currency, empowering efficient and agile cross-border payments and liquidity management, rather than merely being a speculative asset.
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Looking ahead
As the narrative surrounding XRP shifts toward widespread adoption, it becomes increasingly crucial to emphasize its practical applications and tangible benefits, rather than solely focusing on speculative investment opportunities. The SEC’s past attempts to hinder XRP’s growth only underscore the importance of prioritizing its real-world utility.
Recently, Timestabloid reported that Bitwise, the world’s largest crypto index fund manager, has taken a bold step forward by applying to an XRP Exchange-Traded Fund (ETF). The cryptocurrency community is on high alert as the SEC reviews the application, with everyone eagerly awaiting the outcome.
A green light from the SEC would be a game-changer for the industry, solidifying XRP’s status as a top digital asset and paving the way for widespread adoption. This development could have far-reaching implications, from faster and cheaper cross-border transactions to increased mainstream recognition.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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