Pundit Says XRP is a Shitcoin. Here’s why

A prominent crypto trader, known by the pseudonym Sensei, has reiterated his stance against XRP, despite recent developments surrounding the asset.

Sensei has openly stated that he is shorting XRP, maintaining his view that it remains a low-quality cryptocurrency, even as Grayscale Investments moves forward with the launch of its XRP Trust.

Grayscale, one of the largest digital asset managers, recently introduced its XRP Trust in response to a court ruling in the Ripple v. SEC lawsuit, which had spanned nearly four years.

Though the possibility of an appeal  still exists, Grayscale proceeded with launching the trust, signaling a step toward the eventual creation of an XRP exchange-traded fund (ETF). This approach mirrors the path Grayscale followed with Bitcoin and Ethereum ETFs, which led to significant market interest.

Market analysts anticipate that an XRP ETF could attract substantial capital inflows, potentially leading to price growth for the token. Following the news of the Grayscale XRP Trust, the digital asset experienced a notable price surge, reaching a high of $0.588 on September 12, a level it had not tested in several weeks.

Although the price saw a slight correction, settling around $0.5820, Sensei disclosed on social media platform X that he would be shorting XRP at this price level.

Sensei’s Criticisms of XRP

Sensei has consistently criticized the token, expressing indifference to positive developments like the launch of Grayscale’s XRP Trust. He continues to label XRP a “shitcoin,” a derogatory term he frequently uses when discussing the token.

Despite XRP’s established use in facilitating payments and its function as a gas token within the Ripple ecosystem, Sensei remains unconvinced of its value.

Following his public statements, XRP saw a further price correction, closing at $0.5336 on September 12. However, this decline was not isolated to XRP, as broader market conditions also impacted other cryptocurrencies.

Despite the correction, XRP outperformed many other digital assets, recording a 5% price increase compared to Bitcoin’s 1.39% gain on the same day. The token’s upward momentum continued the following day, closing at $0.5727 on September 13, marking its first close above $0.57 since late August.

Sensei’s critique of XRP builds upon his long-standing negative sentiment toward the token. The trader has repeatedly argued that the token is unlikely to achieve significant growth, citing its decline in market dominance from 32% to 1.5% over the past seven years as evidence of its diminishing relevance.

He has also pointed out that during the bull run in 2021, XRP underperformed relative to other assets, including Bitcoin. In recent comments, he advised investors to avoid purchasing the token, reiterating his claim that it lacks long-term potential.

Historical Context and Market Performance

It is worth noting that criticisms similar to Sensei’s have surfaced at various points in XRP’s history, particularly during the pre-bull market phase of the 2016-2017 cycle. During this period, the token lagged behind Bitcoin and other major cryptocurrencies, prompting skepticism about its potential.

However, when the bull market peaked, XRP experienced an explosive rally, increasing by over 110,000% from $0.003 in January 2017 to an all-time high of $3.31 in January 2018.

Some analysts, like Dark Defender, believe that XRP could see a repeat of this pattern during the current market cycle. However, this possibility remains uncertain, depending on broader market dynamics and regulatory developments.

While XRP’s future performance is difficult to predict, its ability to surprise the market in the past leaves room for speculation that it may once again outperform expectations.

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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