Cardano’s Hoskinson has defended the two projects, claiming that the communities they have built over the years “can’t be faked.”
Galaxy Digital CEO Mike Novogratz has cautioned that XRP and Cardano (ADA) must demonstrate practical application or they risk being irrelevant to the crypto market.
The crypto market is moving beyond hype-driven tokens to utility tokens, and the former, which largely depend on community loyalty, must evolve to fit the increasing need for viable use cases, Novogratz stated. Unless they can be used in practice, such tokens might not be able to sustain their value as competition rises.
In a podcast with the Galaxy Head of Firmwide Research, Alex Thorn, Novogratz stressed that those cryptocurrencies that have transparent business principles would be more successful in the future. When you are only a business, the valuations go way down, he said. He further observed that Bitcoin has established itself as money in the crypto world, which distinguishes it from tokens that lack applications.
“Can Ripple hold it together? Can Cardano hold it together?” Novogratz inquired, indicating that XRP and ADA should solve their utility problem before falling into the shadow of more feasible business ventures.
In spite of Novogratz’s warning, XRP has survived several market cycles. The strong community around the cryptocurrency has stood by it in economic recessions and market downturns.
Novogratz acknowledged that the XRP community has demonstrated remarkable commitment to its development, and this has been its main strength. The US SEC is also increasingly likely to approve other XRP and ADA ETFs, with approximately 26 combined filings for both tokens, which would boost their staying power and institutional appeal.
Recently, Grayscale, Bitwise, 21Shares, Franklin Templeton, WisdomTree, and Invesco filed amendments to align with the SEC structure as they rush to become the first movers. Additionally, five spot XRP ETFs were listed as “active and pre-launch” by the Depository Trust & Clearing Corporation (DTCC) in November.
Similar to XRP, Cardano has enjoyed similarly high levels of loyalty, with founder Charles Hoskinson building a massive and engaged community. Novogratz admitted that Hoskinson has been vital in Cardano’s roadmap, even though the project has fewer use cases than its competitors.
Novogratz stated:
“Charles Hoskinson, bless his soul, has been keeping the community of Cardano strong, yet the blockchain is not used much.”
Never one to shy away from a challenge, Hoskinson would soon respond on X, noting that Cardano and XRP have strong communities and great partners, which are critical when targeting the $10 trillion real-world asset tokenization sector.
