Phil Liu, co-founder of New York-based crypto-asset management firm Arca, predicts XRP will be a “relic of history” by the end of this year, according to the Wall Street Journal:
I think that by the end of 2021 this thing will become a relic of history. Arca’s investment product family does not support XRP.
The SEC lawsuit filed in late December last year, which also targeted the company’s CEO Brad Garlinghouse and former boss Chris Larsen, said both executives personally received about $ 600 million from unregistered XRP sales.
Securities lawyer Liu said the allegations made in the widely discussed document were “compelling.” He believes XRP is the firm’s sole source of revenue and that its products should be considered “inadequate.”
Back in February 2020, Garlinghouse told the Financial Times that Ripple would not be profitable without XRP sales:
I think I said before that we will not have profit or positive cash flow [без продажи XRP].
In late December, Liu predicted that Ripple could become insolvent by the end of 2021, as the company has no alternative to XRP sales, which are at the center of the SEC’s litigation:
I see no viable alternative to replacing XRP sales other than leaving the US and excluding US investors from buying XRP. They will have to start from scratch because all XRP profits were made when Ripple was a US company.
Ripple lawyer Andrew Ceresny, in turn, claims that XRP does not meet the Howie test, which is used to determine whether a particular digital asset is a security.
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