Editor's PiCK
Galaxy Digital CEO "XRP·Cardano (ADA) could be left behind if they fail to demonstrate practical utility" warns
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- Mike Novogratz, CEO of Galaxy Digital, warned that XRP (XRP) and Cardano (ADA) could lose competitiveness in future market cycles if they fail to demonstrate practical use cases.
- Novogratz stated that unlike Bitcoin, crypto assets without business value and real revenue structures will inevitably see their valuations decline.
- He predicted that tokens with clear revenue structures, such as Hyperliquid (HYPE), will receive favorable evaluations and that the crypto asset industry will face a major turning point within 1–3 years.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Negative views have emerged regarding XRP and Cardano (ADA), which rank 5th and 10th respectively in cryptocurrency market capitalization.
On the 27th (KST), according to crypto-focused outlet Crypto Briefing, Mike Novogratz, CEO of Galaxy Digital, said in a recent conversation with Alex Sohn, head of research, that "in the new year, tokens' 'business value' will be evaluated importantly in the crypto asset market," and warned that "XRP and Cardano may lose competitiveness in future market cycles if they fail to demonstrate practical use cases."
Novogratz said, "Bitcoin already has an established status as a currency, so it has a clear valuation standard," but added, "other crypto assets besides Bitcoin will ultimately be evaluated as businesses, and accordingly their valuations will inevitably be much lower."
XRP and Cardano were cited as representative crypto assets that have grown 'community-based.' Novogratz said, "XRP and Cardano have maintained influence based on strong communities, but if they lack real revenue and use cases they may hit limits," adding, "it is questionable whether Ripple can continue to hold on, or whether Cardano can maintain this. It will be decided by who became a currency and who ultimately is evaluated as a business that 'makes money.'"
Novogratz gave an especially harsh assessment of Cardano. He said, "Although Cardano's founder Charles Hoskinson has maintained a strong community, it is not a blockchain that is widely used in practice," and pointed out, "In an environment with an increasing number of options, it will become increasingly difficult to maintain competitiveness based solely on community loyalty."
By contrast, he pointed to decentralized derivatives exchange Hyperliquid (HYPE) as a token with a clear revenue structure. Novogratz said, "Hyperliquid uses 98% of its profits to buy back and burn tokens," explaining, "this is similar to a stock structure, making the token a kind of equity investment." He added, "This is the future of tokens," and "if a token's utility value is high, it will trade at a good price."
Novogratz also predicted that the crypto asset industry will face a major turning point over the next 1–3 years. He said, "Crypto wallets and exchanges will evolve into 'neo-banks' that offer stablecoins, tokenized stocks, and money market products," and predicted, "the boundary between crypto assets and traditional finance will gradually disappear."
