Morgan Creek Digital continues its policy regarding XRP and XLM
Mark Yusko, CEO of Morgan Creek Digital, one of the largest cryptocurrency hedge funds, stated that they will continue their policy of non-acquisition of Ripple (XRP) and Stellar (XLM) cryptocurrencies due to centralization of their supply.
Centralization? No thanks
Mark Yusko, CEO of Morgan Creek Digital, one of the largest cryptocurrency hedge funds, stated that they will continue their policy of non-acquisition of Ripple (XRP) and Stellar (XLM) cryptocurrencies due to centralization of their supply. Yusko's claims were released in an interview with Thinking Crypto on April 10. During the interview, Yusko explained: "We exclude anything ... that has very restricted circulation, so we don't have Stellar and we don't have XRP."
The hedge fund Morgan Creek Bitwise Digital Asset Index Fund was created by Yusko together with the asset manager of Bitwise in October 2018. 80% of the fund's weight is Bitcoin, however they continuously monitor the top ten cryptocurrencies in market capitalization. Anthony Pompliano, a partner at Morgan Creek Digital, explained to Forbes the reasons why Ripple and Stellar are off the list: "If there is a core group that owns 30% or more of the supply, we exclude them from the index, because we believe that that implies a great additional risk that may not exist if it were a more decentralized network."
According to Yusko, only sixteen cryptocurrencies will be the ones that will truly succeed, while the vast majority of tokens will completely lose their value due to the little chance of success represented by the companies that support them. Yusko explains: "There is nothing wrong with utility tokens - or 'shitcoins' as they are affectionately called - there is nothing wrong with them, it's just that 99% will go to zero because they are just venture capital in the pre-phase. sowing, which has a very low success rate."