Ripple Exec Says XRP Is Equivalent to Oil: ‘We Just Have a Lot of It’
Ripple Labs’ Chief Marketing Strategist, Cory Johnson, took a bold approach to marketing recently when he compared XRP to oil – while comparing his own firm to Chevron. As per Johnson’s tweet on October 4th:
“Ripple’s relationship to XRP is akin Chevron’s relationship to oil. We have a lot of it, we believe it’s a superior technology and we support its many uses — for billions of reasons. But we don’t have all of it, we don’t control it and we aren’t it.”
XRP as Natural Resource?
Johnson’s decision to equate XRP with a natural resource could be seen as a cynical attempt to divert attention from the constant clamour of centralization which surrounds XRP and Ripple Labs.
There even exists a Ripple Lawsuit Tracker which continually provides updates on Ripple’s ongoing lawsuits – which number five in total at present time.
Ultimately, the comparison to oil falls flat on many levels, not least because oil sourced and produced by Chevron is actually owned by them. The extraction of the natural resource from the ground requires startup capital, drilling licenses, land permits, and everything else that a cryptocurrency journalist isn’t aware of.
How that equates to a pre-mined cryptocurrency apparently ‘gifted’ to Ripple Labs is unclear. Statements like this only serve to turn bystanders into skeptics, and skeptics into paranoids. To be fair, however, one XRP devotee did attempt to extend the metaphor:
“To expand on this analogy a little more, the equivalent of where we are now with XRP, would be (somewhat) similar to oil before cars hit the road. XRP hasn’t even started flowing through the system yet because all of the components are still being positioned.”
XRP Is ‘Contrarian Buy’ Says Fundstrat
Fundstrat released this intriguing report on the same day that Johnson’s tweet went out, detailing a range of differences between the views of institutional investors, and those of the crypto twitter-sphere.
The research team conducted surveys with institutional representatives, and compared them with surveys carried out on Twitter. Among the many conclusions that can be drawn from the report, one is that XRP appears to be the most polarizing cryptocurrency out there. As per the report:
“Clearly the crowd does not like XRP, for multiple known factors (the centralization of XRP, tenuous ties to Ripple, etc) but given the polarization and the fact that 1/3 of institutions consider it “least understood”—it makes us believe this may be a contrarian buy signal.”
While a majority of twitter users chose XRP as their favourite cryptocurrency, there were none who considered XRP their favourite coin out of the institutions surveyed:
“On Twitter, 46% chose XRP as their favorite and 31% said it made “least sense.”—no other token came close. Even 28% of Institutions also said XRP made the least sense and zero institutions picked it as their favorite token.”
At time of writing XRP continues to slowly bleed out after recent spikes. The coin has recorded 5% losses for Saturday, October 6th – the highest losses in the market cap top-forty.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.