Popular YouTuber Tim Warren has begun liquidating his XRP portfolio, citing three major concerns with the blockchain project.
The price of XRP has underperformed relative to other major crypto assets in the past few months. While analysts continue to predict an imminent breakout and the XRP community continues to exercise patience, a few former XRP faithfuls are already giving up on the project.
Famous YouTuber Tim Warren is one among such previous XRP devotees. In a recent video, the former XRP enthusiast revealed three core reasons why he is liquidating his position in XRP.
Notably, Warren suggested that he will largely minimize his exposure to the cryptocurrency and will not ‘abandon it completely.’ He still believes there’s a chance that XRP will bounce back in the short term, although he remains bearish on the asset’s long-term prospects.
Three Reasons for Selling XRP
In the Tim Warren video, which has garnered over 38,000 views on X, the first reason why investors should consider selling XRP is because the cryptocurrency is losing an important race.
He outlined that XRP was previously viewed as the “banker’s coin” and looked set to be the rail for the banking system and institutional money flowing in the crypto space.
However, he argued that XRP is already losing this position to other projects like Chainlink, which already boasts a partnership with SWIFT and institutions managing over $600 billion in assets.
He tipped Chainlink to become the real banker’s coin, arguing that LINK could eventually become the third-largest crypto behind Bitcoin and Ethereum.
“As long as we see Chainlink making the convergence and relationship [with big institutions] that is doing, it looks like the future of what ties fiat currencies will have with crypto,” Warren remarked.
3 MAJOR Reasons I'm Selling My #XRP! (It's Not Looking Good) pic.twitter.com/8H8SQlLJ7D
— Tim Warren (@Tims_TA) February 1, 2024
The YouTuber cites Ripple’s planned initial public offering (IPO) as another reason for being bearish on the asset. Precisely, he notes that if Ripple proceeds with its IPO, then it has little reason to protect the price of XRP from declining.
In fact, he argues that if Ripple had an IPO, then the company would have divided loyalty, and is more likely to favor shareholders over XRP holders. He predicts that anytime the “IPO [Ripple stock] starts to drop, [then the company will sell off] XRP to keep their business afloat.”
As he added, the coin could remain at a $0.5 price, and Ripple’s business would work well as its payment business does not depend on the value of the cryptocurrency.
Tim Warren provided a final reason why he is long-term bearish on XRP. He cited the company’s legal victory against the United States Securities and Exchange Commission (SEC) last July.
According to him, the victory means that XRP is the only coin that has legal clarity in the entire cryptocurrency space.
He asked, “Why isn’t the price doing anything? “There is no coin out there that should have a more bullish chart.” He believes that for the asset to continue underperforming despite having the best bullish narrative indicates a bleak future.
Meanwhile, it is worth noting, as mentioned earlier, that the YouTuber believes there will be an XRP rally in the short term as multiple indicators indicate that the asset is oversold. However, he maintains a bearish outlook for a longer timeframe while urging viewers to make their own investment decisions.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
