Famed Silicon Valley investor Jason Calacanis has lambasted XRP, the fourth-largest cryptocurrency, in his recent tweet, calling it “a disaster.”
Calacanis — who made a fortune with his early bets on ride-hailing giant Uber, stock trading app Robinhood, and other prominent companies — maintains that the controversial token is “clearly going to zero” unless some kind of miracle happens.
A pump-and-dump Telegram group
On Jan. 30, XRP witnessed an insane uptick of over 80 percent, peaking at $0.517 on the Binance exchange. This is the highest level the token has seen since its issuer, Ripple Labs, got sued by the U.S. Securities and Exchange Commission in late December.
This massive move is believed to have been triggered by a bizarre group on Telegram that has 124,950 members at the time of writing this article.
What is more, Ripple CTO David Schwartz is now comparing the token to the WallStreetBets (WSB) coin:
Right now, XRP chart looks just like WSB chart. Coincidence?
The XRP community has spent the past few days trying to capitalize on the new anti-Wall Street movement, shoehorning their token into the GameStop saga.
Unprecedented speculative fervor
Now, as Calacanis notes, things are getting “out of control” as people are throwing money at the token that the SEC considers to be an unregistered security:
Imagine a shady company gets walloped with an SEC lawsuit, which carries with it risk of ruin, and their crypto coin goes UP 60%?!?!? What are you people thinking!??!
The speculative frenzy surrounding some stocks and cryptocurrencies has been nothing short of spectacular over the past week.
Joke cryptocurrency Dogecoin (DOGE) skyrocketed over 1,000 percent on Jan. 29 before collapsing 70 percent in practically no time.