According to cryptocurrency investor Jeff Dorman, XRP is an 'insanely overvalued asset,' the entire value of which is based on social capital, not on fundamental utility or financial metrics.
Since there is no financial value, there is no functionality; this is 100% just social value, said Dorman during a stream on YouTube.
Despite his critical assessment, Dorman acknowledges that social capital should not be ignored as a means of valuation. Drawing parallels between XRP and GameStop, he reminded that both utilized strong community support and brand recognition for growth in the absence of foundational reasoning.
Ripple has managed to position itself as an organization for institutional adoption of blockchain technology, and its general director, Brad Garlinghouse, and his team continue to promote XRP as a solution for cross-border payments, even though the actual application of XRP for these purposes is minimal. Dorman compares Ripple's approach to the strategy of 'fake it till you make it,' making XRP particularly difficult to assess for investors. He himself avoids investing based on social value because 'I can't understand how much it's worth.'#CryptoAdoption $XRP
