Attorney Deaton has called on crypto community members to re-evaluate Sygnum Bank’s recommendation about investing in Bitcoin, Ethereum, and XRP.
Crypto-Law.US founder Attorney John Deaton has called on the crypto community to re-evaluate Sygnum Bank’s recommendation about investing in Bitcoin (BTC), Ethereum (ETH), and XRP.
In a February 2021 tweet, Attorney Deaton noted that Sygnum Bank’s Head of Management urged the public to increase their exposure to “tokens of the future.”
According to Deaton, the bank listed the top three assets at the time- BTC, ETH, and XRP – as the tokens of the future. He noted that the Sygnum Bank exec described Bitcoin as the future asset for the store of value and wealth.
Additionally, the bank classified Ethereum as the future asset for “infrastructure play.” Lastly, Sygnum described XRP as the technology of the future for payments.
Two years after his tweet, Attorney Deaton asked crypto enthusiasts to state whether the bank was right in 2020 and today.
Over two years ago, I tweeted out that the Top 3 Crypto assets Sygnum Bank recommended were #BTC, #ETH & #XRP. #Bitcoin as a store of value (Digital Gold thesis), #ETH as an infrastructure play (Web3 thesis), and #XRP as a play on global payments.
Was it good advice in 2020… https://t.co/EPksP68OxE
— John E Deaton (@JohnEDeaton1) July 31, 2023
This would mark the second time Deaton would be revisiting his initial tweet. Notably, the attorney drew the public’s attention to the tweet last May, noting that the recommendation was made in July 2019. According to him, investors still believed it true as of May 2022.
Crypto Enthusiasts React
Following the latest recollection, crypto community members took to the comment section to give their opinion. While some users agreed with the bank’s position, others seem to disagree with it for labeling Ethereum as the future asset for infrastructure play.
I would agree with everything except ETH👌
— CryptoAvon2626❤️🔥 (@CryptoAvon2626) July 31, 2023
Bitcoin As a Store of Value
Top Bitcoin proponents have tipped the asset to be a good store of value. Notably, for an asset to be a good store of value, it must be worth the same or more in the future.
In addition, a good store of value must be exchangeable with something else, like dollars or gold.
Although Bitcoin is designed to be scarce over time, the argument of Bitcoin being a store of value has faced significant constraints.
Critics have focused more on the asset’s volatility, which saw it shred over 50% of its value from its previous highs. However, Bitcoin has surged tremendously in value since its inception.
Interestingly, top financial institutions, like BlackRock and Fidelity Investments, seek to give institutional investors indirect exposure to Bitcoin. They plan to launch spot Bitcoin exchange-traded funds (ETFs) in the US.
Ethereum As An Infrastructure Play
Ethereum technology is gradually becoming home to digital money and decentralized applications (dApps). Top crypto projects, including Shiba Inu, are domiciled on the leading blockchain.
Although the network has faced several technical glitches in the past two years, the blockchain is still in good shape. Following the launch of ETH 2.0, Ethereum successfully transitioned to a Proof-of-Stake (PoS) algorithm from a Proof-of-Work (PoW). The transition has succeeded in attracting more users to the network.
XRP As a Play on Global Payments
Several financial institutions have been leveraging XRP for cross-border settlements and payments. They do this using Ripple’s On-Demand Liquidity (ODL) solution. This service leverages XRP as a bridge between two fiats during cross-border settlements.
Some banks using Ripple’s ODL include Latin American-based Travelex Bank, ChinaBank, and Japanese financial giant SBI.
Meanwhile, Ripple is confident that more US banks will use XRP for cross-border settlements. The leading blockchain company remarked a few days after a US District judge declared the coin a non-security.