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Brad Garlinghouse, the CEO of Ripple – the FinTech company that has close ties to XRP – explained in a recent interview that he believes the vast majority of cryptocurrencies that are currently on the markets will eventually plummet to zero.
Naturally, XRP does have its fair share of naysayers who believe that it will be one of the cryptocurrencies that ends up going to zero, but Garlinghouse remains adamant that the utility that is currently being created around XRP will be enough to propel it higher in the months and years to come.
Ripple CEO: Majority of Cryptos to Die in Coming Years
During a recent interview with Bloomberg, Garlinghouse explained that the sheer amount of digital assets currently circulating within the cryptocurrency markets is primarily the result of the hype surrounding the nascent technology.
As this hype fades, however, he anticipates the majority of these cryptocurrencies to plummet to zero due to their lack of actual utility and their inability to meet customer 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 Purge?
There are many analysts and investors who believe that the utility surrounding XRP – the native token to Ripple’s xRapid cross-border settlement system – is fabricated and that the token will ultimately be included in the event that Garlinghouse believes will bring many cryptocurrency’s value towards zero.
Despite this, Garlinghouse did explain that XRP does have significant utility, especially while considering the inefficiencies of SWIFT, including its “transaction volatility,” which Ripple believes is solved by XRP.
It is important to note that XRP has been stuck in a period of consolidation for the past couple of weeks, and it has been unable to break above its resistance at $0.30 despite the on-going Ripple Swell conference – which is where positive news surrounding the adoption of XRP is often announced.
Assuming that Ripple doesn’t incur its annual “Swell pump” in the coming few days, it may face further downside in the near-term. Ultimately, however, its long-term success will likely be largely dependent on how much real-world utility is generated around the crypto.
Featured image from Shutterstock.
