Ripple’s (XRP) journey from $3.40. back down to today’s price of $0.49 could soon see it ring-fenced from other competing cryptocurrency, with concern over its centralisation potentially excluding Ripple (XRP) from entry into a price boosting regulatory framework. It was seen in the last week that the rival bitcoin recruited another billionaire believer from the world of mainstream finance after it was revealed that investor Steven Cohen has placed money into a hedge fund focusing on cryptocurrencies and blockchain-based companies.
Cohen Private Ventures has invested their funds in Autonomous Partners, new hedge fund buying up cryptocurrencies and equity in blockchain-related companies as the world of mainstream finance begins the search for the next generation of investments in the digital age.
Ripple (XRP) is one notable absence from the spate of technologies in which Autonomous Partners is interested, raising concern that the XRP tokens will be treated differently when regulations arrive. If they come in the picture, Securities and Exchange Commission (SEC) in the US decides that the tokens are securities they could then be subject to different laws than tokens that are not. From, Autonomous Partners, Arianna Simpson said: “I have a lot of concerns about the level of centralisation, and I have regulatory concerns if what they have issued is a security.”
Elpis Investments, CEO, Anatoly Castella told to a local news-paper that that ripple’s XRP is set to miss out because it is not a Digital Fiat, and not a real cryptocurrency. Mr Castella warns to the investors that XRP falls short of the “purest interpretation of cryptocurrency.”
Mr Castella also said “Ripple (XRP) resembles a fintech platform combining the best elements of fiat money and blockchain cryptocurrency.” It should be considered Digital Fiat, not a cryptocurrency. The potential for missing out on the very regulations that go on to propel rival cryptocurrencies to all new price levels, Mr Castella says that the SEC should consider to create a regulatory framework for digital fiats like ripple and a sustainable ecosystem for the crypto start-ups, presently held in a state of limbo. He also said that “This will also help to ensure that real cryptocurrencies like bitcoin, Ethereum etc will not be damaged and misunderstood by the start-ups adopting the wrong regulatory approach from the outset.”