By Max Hasselhoff
We saw some of this scrutiny directed towards Ripple when Jason Bloomberg wrote a column questioning whether or not Ripple was a scam. Ripple uses blockchain technology to develop methods of cross-border money transferring.
Although Ripple is one of the most popular cryptocurrency projects on the market, Bloomberg provided a very unflattering portrait, ultimately claiming that Ripple was nothing more than a glorified pump-and-dump scheme. According to Bloomberg, Ripple’s rise has been a tale full of sound and fury—and a great deal of money—but without a product of any significance.
Key to Bloomberg’s analysis is Ripple’s inflated value. Pump-and-dump schemes traffic in the perceived value of an asset, which often wildly differentiates from its intrinsic value. Ripple, holding over 60 billion XRP, has a valuation of around $10 billion.
However, Bloomberg argues that the valuation is ludicrous given that the technology behind Ripple is either fatally flawed or non-existent, its “partnerships” are often nothing more than paid experiments that ineluctably fail, and its equivocation and refusal to classify itself as a security is a means of circumventing regulatory stipulations.
The Ripple community was hardly pleased with Bloomberg’s column, and he has become the object of their collective derision. However, the anger he has provoked has done little to answer the questions he posed.
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