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Among other notable cryptocurrencies, Ripple's XRP was omitted from the recently launched Morgan Index Digital Asset Index Fund.
Although XRP is a major cryptocurrency, institutional investment vehicles often end up neglecting it because of uncertainty about the nature of cryptocurrency – as if it were a security token or not.
Stellar Lumens (XLM) and XRP have been completely omitted from the list of cryptocurrencies to be managed by the new index fund that was launched today. XLM and XRP share many common points, especially the fact that they both use pre-mined tokens.
For those of you unfamiliar with the word pre-mined, it refers to a situation where the total cryptocurrency token offer is produced right at the start of its blockchain.
Speaking of the exclusion of XRP, XLM and many other cryptocurrencies pre-mined by the index fund, Anthony Pompliano, a Morgan Creek associate said:
"If there is a central part that owns 30% or more of an offer, so hold those from the index because we think it introduces many additional risks that may not be there if it were a more decentralized network. "
A lot of controversy surrounds XRP. Because of its seemingly centralized nature, people are wondering if it's a security or not. The Ripple executives say that even if they own most of the XRP tokens, the cryptocurrency is decentralized as it might.
Morgan Creek is now one of the main institutional encrypted investment vehicles that have kept the distance from the cryptocurrency. The fund currently has assets under management of USD 1.5 billion (AUM).
According to the details that have been released so far, institutional investors have access to Bitcoin (BTC), Ethereum (ETH) and eight other popular cryptocurrency tokens with the help of the fund. The fund is an index-based, rule-based fund managed by Bitwise Asset Management, a company that has signed a partnership agreement with the company at the start of this year. Regarding the progress made so far, the company has been quite positive. Pompliano said:
"We are fully prepared and we believe we have built something that institutional investors will find attractive regardless of how the assets are classified, whether they are securities or not."
The platform is really quite interesting with many important cryptocurrencies to be exchanged on it. It is very likely that the platform will grow further in the right direction in the future.
Read also: Ripple VP on Answers to Questions Questions about the Decentralization of XRP
Ripple has the ability to be in the news. Recently, Brad Garlinghouse, CEO of Ripple, went on AMA with Ripple's Chief Marketing Strategist Cory Johnson. A few days before AMA, David Schwartz's live session on The Next Web made the news great. He answered many questions in the live session, with questions and answers that go like this:
Dr. T: Will it ever be technically feasible to obtain cash from multiple pools (like two or more exchanges) and recombine them into a single atomic payment established in a destination exchange?
I am thinking along the lines of something similar to the incremental filling of orders on decentralized exchange XRP Ledger which consumes offers from multiple sources. In the case of RippleNet, it would mean constructing synthetic orders that have been offered by the XRP / Fiat pair by more exchanges.
I understand that this may not be possible with ILP but maybe some other solution?
David: Congratulations on asking the most technical question today! I think it's actually possible to do this with ILP, but I do not know if anyone will ever bother to build the infrastructure to do it. The philosophy of most of those working on ILP is that it makes more sense to "scroll" payments in multiple directions, see which direction gives you the best rate and increase the payments you are following in that direction. This is cheap, fast, efficient and simple to implement, however, it does not guarantee that you will be able to make the entire payment. The hope is that we can design systems that solve the problem at higher levels and keep money flow levels as simple as possible – a sort of opposite of Lightning's approach.
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