Ripple’s Chief Market Strategist Cory Johnson recently spoke at Yahoo Finance’s All Market Summit: Crypto. He noted that most people don’t understand that Ripple and XRP are two different things. He also acknowledged the fact that most people who trade over $1 billion worth of these tokens each day have no idea about the underlying asset.
Two Different Concepts in One
XRP gained unprecedented press attention after it rose over 32,000% in value in 2017. It fell by 75% this year, but people still remain fascinated about the cryptocurrency. Some say the reason that XRP rose quickly in value is because Ripple has 60% of the token supply under its control.
On this point, Johnson expressed his views, saying: “It is endlessly frustrating to me that people are unable to distinguish the fact that XRP and Ripple are separate things. I mean, no one calls Exxon Mobil oil. Exxon Mobil has a vested interest in seeing that oil is successful, but that doesn’t mean it’s the same thing.”
Ripple is a software company providing products that enable financial service institutions to send and receive payments internationally and to perform transactions using a potentially cheaper and faster system. It has two products that it offers to banks: xCurrent and xRapid. Now XRP is xRapid’s settlement token.
People May Not Know What They Are Trading
XRP tokens are being traded on exchanges globally, totaling over $1 billion worth of value transfer daily. Johnson said that people might not even be aware of what they are trading in or what the underlying asset of the currency is.
“We had the best first quarter the company’s ever had, we signed more deals, got more companies into production, deals coming every six days instead of every six weeks like a year ago. Yet XRP had the worst quarter it’s ever had. So, I would argue that they’re very much separated.”
Is XRP Crypto?
Ripple CEO Brad Garlinghouse said earlier this year that he doesn’t consider calling XRP a cryptocurrency. Johnson seconded his views. He argued:
“I think that XRP in some ways is crypto 2.0. [Bitcoin] opened our eyes to what’s possible, but the failings of the technology also became apparent.”
The currency still grabs public attention like never before. He said that the “religious-like fervor” for the currency is not just because people believe that Ripple has better technology but could also be because “people have money at stake.”
“When your money’s at stake, you start to pay a little more attention to things. I also think that’s one of the reasons there is such FUD [fear, uncertainty, and doubt]. People who understand it and have made a bet somewhere, want to see the other things fail.”