Mike Novogratz compares Ripple Community with Trump supporters

In an interview, Bitcoin billionaire Mike Novogratz compared Ripple supporters with Trump supporters and called the XRP token a “nonsense coin”.

Mike Novogratz and the Ripple Community will probably not become friends that quickly. In a recently published YouTube interview the Bitcoin billionaire shot violently at the XRP supporters. When asked about his opinion on the “bank coin”, Novogratz mainly criticized the lack of decentralization of the crypto project. The crypto whale compared the Ripple community with Trump supporters. Specifically, he said:

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The XRP Army has built a community that really wants to believe in the cause. It reminds me a bit of Trump supporters. You could tell them anything and they would still believe the election was fraudulent. It’s like all the 9/11 conspiracy theories. The crypto space is just like that sometimes. Some just don’t want to hear the truth.

Mike Novogratz on YouTube.

“Ripple is a nonsense coin”

While crypto currencies like Bitcoin or Ethereum would bring real added value for society, projects like Dogecoin or XRP are just so-called “Baloney Coins” or “nonsense coins”. The problem here is that there are too many investors who are not sufficiently familiar with the matter and simply invested because they felt the “energy of the moment”. Novogratz himself also holds shares in Ripple, but it has been a losing business for him so far. In addition, he sees investors in the crypto space more like fans of soccer teams. There is a kind of tribal thinking that prevails in the cosmos of digital assets. Whether with XRP, Dogecoin or other Altcoins.

Within the crypto space there have been critical voices criticizing Ripple’s lack of decentralization for a long time. In fact, of the 100 billion XRP, about 60 billion are owned in Ripples. In December 2017, the Californian FinTech deposited 55 billion XRP into various escrow accounts, of which one billion flows back into the company every month. The start-up then decides whether to keep the XRP, to throw it on the market or to close it again. With this, Ripple wants to prevent the market from being flooded with XRP too quickly. 41 months have passed since the “lockup” and so far 7.3 billion XRP have been withdrawn from the escrows, an average of 178 million per month.

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Even if the comparison with conspiracy theorists or Trump supporters is a bit far-fetched, there are always examples in which the support of certain coins almost borders on fanaticism. One example could be the DOGE community. Since the DOGE rally at the end of April, a petition has received massive support, calling on the retail giant Amazon to integrate Dogecoin payments. The applicant, Mark E, writes as justification:

Dogecoin is stable in value, has the lowest transaction fees of the other big coins, has a huge supply of coins and has a very large, active community with ongoing development.

Mark E. on change.org

So it is time for Amazon to “recognize the power of Dogecoin” and “accept it as a means of payment”. It is doubtful that the petition in the executive suite will meet with open ears. Compared to DOGE, XRP has at least one valid use case that could significantly change the type of transactions.

Whether Ripple will turn into a success story like Bitcoin or Ethereum is probably also closely related to the judgment in the ongoing court proceedings with the SEC. After two stage wins, the chances for the Californian FinTech are not bad so far.