Cryptocurrency mogul Mike Novogratz has weighed in on the staying power of the Ripple-affiliated XRP token during a recent appearance on "Galaxy Brain" alongside Pantera Capital founder Dan Morehead.
Novogratz has opined that the aforementioned cryptocurrencies managed
"Why is Cardano still one of the bigger coins? Or XRP? Because they got started early when there were not as many choices and they built communities," Novogratz said.
Now, there is not enough time for new tokens to create narratives and build communities since there is an "infinite" number of new cryptocurrencies.
The 60-year-old billionaire claims that launching something like "Novocoin" would be "a lot harder" today since it would be challenging to build a community. Even some extremely famous people could struggle to build resilient communities, according to Novogratz.
Tomiwabold Olajide"I think that it's going to be harder for new projects to gain sustainability unless there's utility. Right, now there's very little utility in the valuations, " Novogratz added.
Novogratz, who was critical of both ADA and XRP in the past, spoke rather favorably of the latter earlier this year, arguing that people should be allowed to buy the Ripple-affiliated token if they want to. He claimed that the cryptocurrency was being propelled by its narrative that keeps the community engaged.
After its stunning comeback in the fourth quarter of 2024, XRP remains the third-biggest cryptocurrency by market capitalization. It is currently valued at $155 billion.
Meanwhile, Cardano (ADA) remains in ninth place with a market cap of $28.6 billion.
Dan Burgin
Vladislav Sopov