Ripple CEO Brad Garlinghouse explained in a recent interview that he thinks the majority of cryptos that are currently on the market will eventually plunge to zero.
Naturally, XRP does have its fair share of opponents who think that it is among the cryptos that will ultimately plummet to zero, though Garlinghouse is adamant that the value that is apparently being developed around CRP will be enough to send it higher in the future.
In an interview with Bloomberg, Ripple CEO said that the sheer amount of digital assets currently going around the crypto markets is majorly the result of the hype surrounding the nascent technology.
As this hype slows down, however, Garlinghouse expects the majority of these cryptocurrencies to plunge to zero because of their lack of actual utility plus their inability to meet consumer needs.
“Anytime there is a new market, there are a lot of people that run into that market and try to show that they can solve a problem, they can deliver a customer need,” he explained, going on to say that 99% of these assets “probably goes to zero.”
Will XRP Avoid the Market-Wide Plunge?
There are a host of investors and analysts who believe that the value surrounding XRP, the native token to Ripple’s xRapid cross-border payment system, is fabricated and that the token will eventually be included in case Garlinghouse believes will bring multiple crypto’s value towards zero.
However, Garlinghouse went on to say that XRP does have substantial utility, especially when considering the inefficiencies of SWIFT, including its “transaction volatility”, which the Fintech company believes is solved by XRP.
Worth mentioning is that XRP has been stuck in a time of consolidation for the last few weeks, and it has found it difficult to break above its resistance at USD 0.30 despite the on-going Ripple Swell conference, which is where good news surrounding the adoption of XRP is usually announced.
Presuming that Ripple does not incur its annual “Swell pump” in the near future, it may face additional downside in the near future. Eventually, its long-term success will largely depend on how much real-world utility is produced around the cryptocurrency.