Experienced trader Peter Brandt has recently referred to XRP as a “fool coin” despite his own chart indicating a $5.40 price target. Versan Aljarrah, the founder of Black Swan Capitalist, explained that while a price target is a trade, it does not necessarily address the importance of the asset.
Brandt’s View on XRP
Brandt, with over 40 years of trading experience, has raised doubts about XRP’s investment value based on its use in payments. He suggested that the utility of XRP in transactions does not automatically translate to increased worth.
His key arguments include:
- The dollar comparison: Brandt compared XRP to dollars, stating that utility alone does not drive value.
- Price discovery: He believes that utility will eventually determine XRP’s true value, considering its current valuation case unproven.
- Supply: Brandt finds XRP’s supply situation ambiguous.
Brandt favors Ether and Solana over XRP and cautions investors against chasing new crypto tokens.
Importance of Brandt’s Argument
Aljarrah emphasized that Brandt’s $5.40 target reflects a potential price movement rather than the significance of XRP. He stressed the distinction between price prediction and the asset’s relevance.
Challenges to Brandt’s Argument
Aljarrah criticized Brandt’s dismissal of XRP as a “fool coin” without considering the developments surrounding it. He highlighted three key developments:
- Legal clarity: A US court ruled that XRP transactions were not securities, and the SEC case has been resolved.
- Institutional build-out: Ripple has expanded into prime brokerage and corporate treasury, and introduced its regulated stablecoin, RLUSD, on the XRP Ledger.
- Regulated products: Investment products linked to XRP now exist, providing institutional exposure through familiar channels.
A Fair Debate
Aljarrah acknowledged the ongoing debate on XRP’s role in global settlement, but stressed the importance of recognizing the evolving landscape of payments, tokenization, and settlement. He urged investors to maintain their own thesis and use charts as a tool for decision-making.
Investment Advice
Aljarrah advised investors to formulate their own thesis, use charts as a guide, and plan their trades diligently to avoid being swayed by headlines. He concluded by expressing his disagreement with Brandt’s views.