- Jason Calacanis cautions against using XRP the same way as Bitcoin
- He points out the fundamental difference in the degree of decentralization
- In his opinion, Ripple could destabilize the markets with sharp sales
- He met opposite arguments from John Deaton, but MoneyGCC provided the numbers
While the possibility of a national Bitcoin reserve is being considered and even expanding to other cryptocurrencies – Jason Calacanis cautions against using XRP.
He calls XRP “centrally controlled security” and believes that using it as a commodity could lead to uncontrolled trading and create chaos in the market.
Jason Calacanis Statements, John Deaton Reaction, and XRP Price
Jason Calacanis cautions that XRP and Bitcoin should not be valued and used in the same way. In his opinion, there is a fundamental difference between the two, and while Bitcoin is truly decentralized, so can be traded freely and used as a US national reserve – XRP requires a different treatment.
He insists that XRP is “centrally controlled security,” so Ripple could create chaos in relatively stable and consistent markets if it starts massive sales. He also insists that it’s not the best solution for the US economy and casts a lot of doubt on the SEC’s securities rules.
At the same time, there are opposing opinions. John Deaton defended XRP, directly commenting on the post of Jason Calacanis, saying that he should better understand the regulatory provisions. Also, he should keep in mind the result of the big fight of the SEC against Ripple and the corresponding court decision that XRP is not a security except for institutional investors.
MoneyGCC also joined in and greatly empowered Jason Calacanis’s statements with some important numbers. Namely that 70% of the UNL validators are funded directly or indirectly by Ripple Labs, and that more than 40% of the token supply is controlled by Ripple.
Meanwhile, the words of Jason Calacanis have already affected the price of XRP, and it fell 4% below the critical $2.70 support level, later recovered to $2.72 and fell back to $2.62. More recently, we saw a small bounce to $2.65, and at the time of writing, XRP is still trading at $2.63.
Conclusion
Jason Calacanis’ statement is controversial, and John Deaton’s comments seem highly relevant here. At the same time, it should be noted that the concerns of Jason Calacanis are also more than understandable because the implementation and specifications of XRP and Bitcoin decentralization are actually different. Therefore, making it part of the US National Reserve, like some other cryptocurrencies, may indeed have potential risks and may not be a solid solution.
Be aware and stay tuned for updates on the rapidly reshaping crypto landscape.
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