Happycoin.club - According to crypto investor Jeff Dormann, XRP is an 'insanely overvalued asset,' whose entire value is based on social capital rather than fundamental utility or financial indicators.
Since there is no financial value, there is no functionality either; it is 100% just social value, Dormann stated during a YouTube stream.
Despite his critical assessment, Dormann acknowledges that social capital should not be ignored as a means of value. Drawing parallels between XRP and GameStop (NYSE:GME), he reminded that both leveraged strong community support and brand recognition for growth in the absence of fundamentals.
Jeff Dormann during a recent YouTube stream
Ripple has managed to position itself as an organization for institutional adoption of blockchain technology, and CEO Brad Garlinghouse and his team continue to promote XRP as a solution for cross-border payments, even though the actual use of XRP for these purposes is minimal.
Dormann compares Ripple's approach to the strategy of 'fake it till you make it,' which makes XRP particularly difficult for investors to evaluate.
He himself avoids investing based on social value, 'because I can't understand how much it's worth.'
https://ru.investing.com/news/cryptocurrency-news/article-2748351