In a new video that has sparked significant buzz within the XRP community, macroeconomic expert Raoul Pal has shared a controversial outlook on longstanding cryptocurrencies like XRP and ADA. Pal, who is the co-founder and CEO of Real Vision, is advising investors to steer clear of these older digital assets. In his recent update, Pal argues that XRP and ADA may no longer be leading blockchain innovation.
Pal challenged the ability of XRP and ADA to keep up with new, more adaptable blockchain projects. Despite their established market presence, Pal believes these older coins lack the dynamism seen in newer ventures that offer advanced technology and potentially higher returns. “XRP, we’ve gone through this before […] you might be right, you might love it, forever just please move to whatever the strong momentum is,” he expressed, suggesting that clinging to these assets out of nostalgia could prevent investors from seizing emerging opportunities.
A major point in Pal’s discussion was the fervent communities that form around certain cryptocurrencies, which he believes can lead to emotional investments rather than rational financial decisions. “I know there’s that fear in your head that this time it’ll be the big one, you’ll get plenty of notification, you get back in but don’t miss the bull market because you’re in a narrative of the past. I beg you don’t do this and the communities are huge and I feel like and I don’t want to get attacked by people online for this but I just feel like you’re being done a disservice by being a cult,” he contended.
Pal urged investors to approach their investments with a profit-driven, rather than emotionally driven, mindset. He used the term “mercenaries” to describe the ideal approach to cryptocurrency investments: being ready to allocate capital wherever the best risk-adjusted returns can be found. “I feel like you’re being done a disservice by being a cult. Our job is to be mercenaries. We’re in the job to make money not to be a cult. Cults don’t make money except for the leaders. Be a mercenary, lend out your capital to the opportunities that will offer you the best risk adjusted return,” he emphasized.
Further, Pal highlighted the inadequacies of investment strategies that rely on hope rather than on pragmatic assessment, citing known cryptocurrencies like Cardano and XRP as examples. “Cardano, XRP, there’s a whole bunch of these. I really hope you’re right but hope is not an investment strategy. Okay, so I’m not trying to insult you. I’m not trying to be rude. Please just understand my heart is coming from a good place. I’m trying to help you all,” he remarked.
Unsurprisingly, Pal’s comments elicited mixed responses within the XRP community. Pro-XRP lawyer Fred Rispoli acknowledged Pal’s well-meaning approach but disagreed with his conclusions about XRP, noting, “I thoroughly enjoy Raoul Pal and, until shown otherwise, consider him authentic and well-meaning. I respectfully disagree with him on XRP but that thesis is reasonable and has not been proven wrong…yet. I do agree there exist ‘old’ coins (cough, EOS) whose days are long past.”
Bill Morgan, another pro-XRP lawyer, critiqued Pal’s arguments for lacking specific reasoning: “His comments may have more value if he gave even one cogent reason why people should not hold XRP other than indirectly referring to its age. If that is his only criteria then he might as well add Bitcoin and Ethereum to Cardano and XRP as they also are old.”
Yassin Mobarak of Dizer Capital underscored the high-risk, high-reward nature of XRP investment: “XRP is the kind of crypto you don’t want to be caught not being in it when it skyrockets. Until then it’s painful, boring and utterly demoralizing to hold.”
At the time of reporting, XRP was trading at $0.5982.
