According to him, cryptocurrency assets derive value from three main sources: financial, utility, and social. Financial value refers to the generation of revenue or cash flow based on the token. Utility value reflects the usefulness of the token within its network or platform. Meanwhile, social value is based on community support and user loyalty.
Dorman explains that the best cryptocurrency projects ideally combine all three types of value, although one or two types can still be meaningful. However, he warns that individual social value—while powerful—is insufficient without a path toward monetization or broader practical utility.
Using XRP as a case study, Dorman describes this token as 'insanely overvalued', pointing out its market capitalization of around $131 billion despite a lack of solid financial or utility fundamentals.
He emphasized that the value of XRP today largely comes from its long-standing brand and loyal community, adding, 'It's not worthless—I just can't determine its value. It's like a very expensive call option on what it could become.'
He also compared XRP to GameStop, arguing that both assets are primarily driven by community enthusiasm. However, he noted that momentum, if directed effectively, could ultimately translate into tangible value—citing GameStop's ability to raise capital and purchase Bitcoin as an example.