- Multicoin Capital is shorting XRP and Zcash
- XRP’s network is superior as a payment system
- Ripple will create a platform for financial entities to move funds
Cryptocurrency News Today – according to reports, one crypto investment firm that has posted returns of 143% on its customers ‘ money over the last two years has shorted Zcash and XRP. The name of the firm is Multicoin Capital. Tushar Jain and Kyle Samani, the founders of Multicoin have revealed that Zcash will be worth anything in about two years. They cited the fact that other firms are copying Zcash’s technology and just a small percentage of the token’s users make good use of its privacy features. They believe the privacy coin will be irrelevant.
Multicoin Founders Say XRP is Too Volatile for Financial Entities and Banks
Apart from their claims about privacy coin Zcash, Jain and Samani also think that Ripple’s native digital currency, XRP, is too volatile for large financial corporations and banks to use, citing its utility as the reason behind this conclusion. Although both individuals believe that Ripple’s payment messaging models exceed the status quo, they believe there’s no incentive for firms looking to move money with XRP. They have been consistent in their view. Recall Samani wrote a column in 2017 were he argued a case for XRP. In his words:
“XRP only has two uses: to serve as a bridge currency for fund transfers between two entities without a trusted relationship and to pay fees on Ripple’s network. However, Ripple’s native token, XRP, isn’t necessary for the network’s functionality. Ripple’s network may be superior as a payment rail system, however, it does not make sense that a rational financial institution will use XRP voluntarily as a reserve currency for the settlement of transactions. This is because XRP will be always less liquid than BTC (which is a global reserve).”
Ripple will create a platform for financial entities to move funds
Ripple has revealed that it is working to make a platform where financial entities can depend on XRP to transfer money instantly across borders, without pooling money in separate banks around the world. Ripple’s partner MoneyGram, is the largest user of the XRP-backed liquidity solution. MoneyGram relies on Ripple’s solution to move about 10% of its US-to-Mexico volume daily.
Samani and Jain remain bullish on BTC and BNB. They believe that these coins have great potential. According to Samani:
“In the cryptocurrency community, they view these things as religious. They keep telling you, ‘to believe forever. We never take this for granted that what is being said is by any means accurate.”
Multicoin Capital has reportedly raised a whopping $101.5 million since February of 2019.