Ripple’s CEO Brad Garlinghouse thinks that strong correlation between bitcoin and other cryptocurrencies prices will soon be broken as market participants will recognize the differences between cryptocurrency assets.
In an interview with CNBC Garlinghouse said “There’s a very high correlation between the price of XRP and the price of bitcoin, but ultimately these are independent open-sourced technologies. ” the CEO added that “It’s early, over time you’ll see a more rational market and behaviors that reflect that.”
Ripple, a tech company in San Francisco that utilizes blockchain technology to rewire bank-to-bank money payments across borders that settle faster than regular transfers with what it calls an “internet of value.” According to data from CoinMarketCap Ripple’s XRP, a token that banks on the network can use to transact quickly has the world 3rd largest market capitalization after Bitcoin and Ethereum.
The company is striking out against the conventional banking networks. Their increasingly widespread adoption by financial institutions gives them a firm basis to expand. According to Garlinghouse, in 2018 Q1, Ripple has signed 20 production contracts with new firms. Reportedly, on Wednesday the company announced a deal with Kuwait’s largest bank, adding to companies like MoneyGram that are already testing XRP for cross-border payments
The number of listed digital coins on CoinMarketCap exceeds over 1,500 cryptocurrencies, Garlinghouse predicts that 99 percent of that cryptocurrency projects won’t exist in 10 years. Ripple’s CEO noted that “There’s gonna be a bit of correction along the way here where a lot of the players in the space that don’t solve a real problem are going to get washed out,”
Some of the cryptocurrency projects have been accused of swindling investors through fraudulent Initial Coin Offerings (ICOs). Authorities in the United States have been trying to crack down on falsified ICOs. The U.S. Securities and Exchange Commission (SEC) clarified in March that it is looking to applicable securities laws to ICOs, crypto exchanges, and digital wallets.
Jay Clayton, the SEC chairman and a former Wall Street deals lawyer, said one of the biggest surprises of his first year heading the agency has been learning about the levels of fraud surrounding ICOs.