Peter Brandt's 'Fool Coin' Call Tests Payment Utility Theory on XRP

Renowned trader Peter Brandt recently labeled XRP a 'fool coin,' arguing that its utility as a payment token doesn't necessarily translate to investment value. This critique comes just before Evernorth's 473 million XRP is set to begin trading on Nasdaq under the ticker XRPN on October 8.

According to Brandt, just because XRP enables quick and cheap transactions doesn't mean it's a solid investment. He points out that holders don't benefit from transaction fees or Ripple's revenue, so its price relies more on market sentiment than actual utility.

XRP has been trailing behind Bitcoin, Ethereum, and Solana in recent months. Over the past 90 days, XRP rose 31%, while Bitcoin increased by 33% and Ethereum surged 53%. The token's performance continues to lag over the long term, with a 50% drop in value over the past year compared to a 30% decline for Bitcoin.

The listing of Evernorth's XRP on Nasdaq may provide stock investors with new exposure to the token, but it doesn't guarantee new buyers. The company already possesses the coins, and any released tokens will add supply that buyers must absorb.