Anthony Georgiades, founder and general partner of Innoving Capital, discussed the concerns about Ripple and his native token, XRP, in particular concerning the centralized aspects of the Grand Book XRP. In an interview with Yahoo Finance, he explained that XRP operates on a large decentralized book, but in practice, Ripple Labs holds a major control over it. Ripple Labs is responsible for selecting a list of validators who treat transactions, and most users rely on the Ripple’s default nodes.
Georgiades stressed that this centralization weakens the position of XRP as a truly decentralized active, and he thinks that it could be vulnerable to regulatory overtaking. Governments could exercise control over transactions by targeting specific institutions or geographic regions, which could fragment the network. This could lead to a break in confidence, network forks and loss of value, ultimately calling into question the aim and competitiveness of the token in relation to centralized systems.
“I see the disadvantage less in terms of impact on Bitcoin in particular and more concerning other altcoins, in particular Ripple. There is a lot of positive feeling on the market for Ripple at the moment and a lot of excitement around Ripple is due to a potential strategic reserve. But I see a lot of fundamental defects in XRP in particular, and I honestly consider a strategic reserve supported by Ripple as the disappearance of the network itself for a number of reasons, “he said. (Sic)
In addition, Georgiades shared his point of view on recent Bitcoin market movements. He thinks that the market has already made a price in several positive catalysts, such as potential regulatory changes and the possibility that bitcoin becomes a reserve asset. However, he said it would take years for any fundamental change to have an impact on the market.
