Given Bitcoin’s status as money and its distinct valuation framework, Galaxy CEO Mike Novogratz wants XRP and Cardano (ADA) to show value or face an inevitable decline. The Galaxy CEO noted that community loyalty will not be enough to prop prices amid expanding options for cryptocurrency investors.
Show Real-World Utility Or Fade Away, Say Novogratz
In a recent interview, Galaxy CEO Mike Novogratz revealed that XRP and Cardano are standing on a dangerous precipice that could see their valuations reach new lows. According to Novogratz, the evolving cryptocurrency landscape requires XRP and Cardano to demonstrate their real-world utility for users, rather than relying solely on community hype or loyalty.
For Novogratz, falling to demonstrate proper utility will trigger a major slump in asset prices. He argued that while XRP and Cardano have enjoyed a cult following over the last few changes, future market cycles will require a shift in strategy.
The Galaxy CEO noted that the cryptoverse is pivoting away from mere community hype to projects with solid fundamentals. He questioned the ability of tokens built on hype to maintain relevance amid the proliferation of options in the cryptocurrency ecosystem.
“Charles Hoskingson, bless his soul, he’s kept the Cardano community with a blockchain that people don’t really use a lot,” said Novogratz. “He has had a strong community just like XRP. Can you keep it together when there are more options?”
Novogratz disclosed that over the last year, several projects have been launched with impressive levels of success. For the Galaxy CEO, a core criterion for the projects is the “clear value” they offer users, with Novogratz highlighting Hyperliquid’s buy-back and token-burning initiatives.
Apart from the focus on real-world utility, Novogratz predicted that virtual asset service providers will be in an arms race to operate as neobanks for users. Eyeing a three-year window, Novogratz disclosed that traditional crypto exchanges will rebrand to offer money market products and tokenized equities to users.
A Valiant Attempt At Real-World Utility
Despite the tag of being solely community-powered projects, Cardano and XRP have made key strides to broaden the scope of their use cases. For Cardano, a streak of integrations has seen the blockchains make inroads in digital identity and governance, with Midnight set to attract a wave of privacy-focused developers.
Meanwhile, XRP, free from its legal tussle with the US Securities and Exchange Commission (SEC), is carving a niche for itself in cross-border remittances and on-demand liquidity (ODL). A conditional approval for Ripple to operate as a national trust bank is tipped to support RLUSD’s reserve management.
Source: https://zycrypto.com/novogratz-warns-xrp-and-cardano-to-prove-real-world-utility-or-risk-extinction/
