YouTuber Tim Warren has begun liquidating his XRP portfolio, citing three major concerns with the blockchain project. He claims that XRP is losing its edge as the banker’s coin, that Ripple’s IPO will hurt XRP holders, and that XRP’s legal clarity is not reflected in its price.
YouTuber Tim Warren has begun liquidating his XRP portfolio, citing three major concerns with the blockchain project.
The price of XRP has underperformed relative to other major crypto assets in the past few months. While analysts continue to predict an imminent breakout and the XRP community continues to exercise patience, a few former XRP faithfuls are already giving up on the project.
Famous YouTuber Tim Warren is one among such previous XRP devotees. In a recent video, the former XRP enthusiast revealed three core reasons why he is liquidating his position in XRP.
Warren suggested that he will largely minimize his exposure to the cryptocurrency and will not ‘abandon it completely.’ He still believes there’s a chance that XRP will bounce back in the short term, although he remains bearish on the asset’s long-term prospects.
In the Tim Warren video, which has garnered over 38,000 views on X, he explained his rationale for selling XRP.
XRP Losing Its Edge as the Banker’s Coin
The first reason why investors should consider selling XRP, according to Warren, is because the cryptocurrency is losing an important race. He outlined that XRP was previously viewed as the “banker’s coin” and looked set to be the rail for the banking system and institutional money flowing in the crypto space.
However, he argued that XRP is already losing this position to other projects like Chainlink, which already boasts a partnership with SWIFT and institutions managing over $600 billion in assets. Chainlink is a decentralized oracle network that connects smart contracts with real-world data and events. Warren claimed that Chainlink is more likely to become the standard for cross-border payments and settlements than XRP.
Ripple’s IPO Will Hurt XRP Holders
The second reason why Warren is bearish on XRP is because of Ripple’s planned initial public offering (IPO). Ripple is the company behind XRP and the XRP Ledger, and it owns a large portion of the XRP supply. Warren noted that if Ripple proceeds with its IPO, then it has little reason to protect the price of XRP from declining.
In fact, he argued that if Ripple had an IPO, then the company would have divided loyalty, and is more likely to favor shareholders over XRP holders. He predicted that anytime the “IPO [Ripple stock] starts to drop, [then the company will sell off] XRP to keep their business afloat.”
He added that the coin could remain at a $0.5 price, and Ripple’s business would work well as its payment business does not depend on the value of the cryptocurrency.
Warren further implied that Ripple does not care about the XRP price or the XRP community, and that it only uses XRP as a source of funding.
XRP’s Legal Clarity Is Not Reflected in Its Price
The third and final reason why Warren is long-term bearish on XRP is because of the company’s legal victory against the United States Securities and Exchange Commission (SEC) last July.
The SEC had sued Ripple and its executives for allegedly selling unregistered securities in the form of XRP. However, the court ruled in favor of Ripple, granting XRP the status of a non-security.
According to Warren, the victory means that XRP is the only coin that has legal clarity in the entire cryptocurrency space. He asked, “Why isn’t the price doing anything? There is no coin out there that should have a more bullish chart.”
He believes that for the asset to continue underperforming despite having the best bullish narrative indicates a bleak future.
He suggested that the market does not value XRP’s legal clarity, and that there are other factors that are holding back the XRP price. The Youtuber did not specify what those factors are, but he hinted that they are related to Ripple’s actions and intentions.
Warren Still Expects a Short-Term XRP Rally
Meanwhile, it is worth noting, as mentioned earlier, that Warren believes there will be an XRP rally in the short term as multiple indicators show that the asset is oversold.
He said that he will not sell all of his XRP, and that he will keep some for trading purposes. He also said that he will buy back some XRP if the price drops below $0.3.
However, he maintains a bearish outlook for a longer timeframe, and urges viewers to make their own investment decisions. He said that he is not giving financial advice, and that he is only sharing his personal opinion and experience.
Warren also highlighted that he respects the XRP community, and that he hopes that they will respect his decision.
