Attempts at Obliviating Bitcoin Won’t Be Successful, But JPM Coin May Give Ripple a Run for Their Money
Bitcoin was the cryptocurrency asset that began the entire industry, and it has managed to bring blockchain technology to millions and millions of investors. Many altcoins have attempted to compete against the coin, but its market cap has kept it at the number 1 spot for CoinMarketCap’s ranking of cryptocurrencies. JPMorgan Chase decided to try and enter their own token in the market called the JPM Coin.
To be clear, the JPM Coin does not exactly match up with cryptocurrency, and the constant hatred from the financial institution’s CEO has left many experts and even major players in the crypto industry refusing to consider it a crypto asset. One of the biggest voices against JPM Coin has been Mark Yusko, the CEO of Morgan Creek Digital Capital.
When speaking in an interview with Ran NeuNer, Yusko said directly that JPM Coin does not fall under the definition of a cryptocurrency, and he even pushed for listeners to never consider it one. He claims that the asset was made in a “walled garden by the elites,” and it lacks any kind of backing.
“They have gone ahead (with) a backed JPM Coin with the fiat currency, something that we are trying to escape from. It is not decentralized and let’s please not call it a cryptocurrency. They want people to call it a Bitcoin killer, but it can be a Ripple killer.”
Tom Shaughnessy, the principal at Delphi Digital, had said a similar comment recently that nearly matches Yusko’s theory. Shaughnessy said,
“This is a huge slap in the face for Ripple. Ripple’s target market is cross-border payments and remittances and now JPMorgan’s effort is a direct threat.”
Clearly, with all of this talk about Ripple, CEO Brad Garlinghouse needed to enter the conversation. Since the token is his project, after all, he held an oppositional stance against the comments of Yusko and Shaughnessy, tweeting, “As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer.”
While attending a crypto conference in the Cayman Islands, Yusko commented that there were only about 15 or 16 coins that even could be considered a store of value, while the rest are just utility tokens. He added that institutions entering the crypto space are almost a necessity, comparing it to the way that institutions began putting money in hedge funds.