Is Ripple A Scam? This Forbes Writer Seems To Think So 🏦💰💲
Last week saw JP Morgan’s | announcement make some noise in the cryptocurrency space and could have been behind why bitcoin rose near the $4,000 mark at the start of the week.
The Wall Street financial organisation has been stirring up something for a while and when they announced the new cryptocurrency on 14th February they broke into the fintech space with a bang. Ripple has now come out claiming that JP Morgans new stablecoin will be a direct competitor to their blockchain based startup services such as the popular xRapid product.
In a similar sense to the function of XRP in the xRapid product, the JPM Coin will serve as liquidity for customers of JP Morgan Chase in sending money on an international scale or between different institutions. As we say, the crypto will be a stablecoin which is going to be tethered to the price of a US dollar. As reported by Ethereum World News, that is where the similarities between the JPM Coin and traditional cryptocurrencies end.
One example is that the banking giant doesn’t intend to release the JPM Coin to the open market. In comparison to XRP and bitcoin, the JPM Coin will function as a tool for JP Morgan’s internal payment system. As an asset, the coin doesn’t have any potential to appreciate in value. In contrast, this also means it won’t be able to drop in value either.
Even so, the newfound cryptocurrency will see Ripple facing an issue. After all this is a direct competitor to the payment protocol. “Ripple has been billing itself as a forward-thinking solution to the outdated practices of fintech. By implementing blockchain and the advancements of cryptocurrency, Ripple has been able to offer products such as xRapid to financial institutions that improve upon the industry standard, such as SWIFT, in terms of transaction cost and speed.” The banking giant represents a rejection of Ripple’s service which is a move that Forbes has said shows the scam that Ripple is.
According to one of the writers at Forbes, Jason Bloomberg, Ripple is being exposed as a scam by JP Morgan and the move to establish the JPM Coin is making banks wise up to the situation.
“While Ripple has been positioning XRP as solving cross-border financial transaction issues among banks, there are also indications that Ripple is essentially a scam. Banks around the world are getting wise, and JPMorgan has timed its release of its coin to fill the void that Ripple’s apparent dishonesty is leaving in the marketplace. What we’re seeing is a market change triggered by Ripple and the correspondent banks in a defensive mode”
Despite this, Bloomberg doesn’t have any evidence to back his statement.
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