XRP is a security, Litecoin has ‘no reason to exist’, Ethereum is the best – says Multicoin Capital

Multicoin Capital, an Austin-based crypto hedge fund backed by Marc Andreessen and Chris Dixon of Andreessen Horowitz, Union Square Ventures, and other VCs, is long on EOS (EOS) and Ethereum (ETH) – but declining on Litecoin (LTC ) and Ripple (XRP).

EOS launch “didn’t go as badly as I think people say”

Multicoin co-founder Kyle Samani told Fortunes “Balancing the Ledger” that his company will remain with EOS despite the negativity surrounding the start of the mainnet. He explained:

We are currently holding our position, we have not sold any. The start of EOS did not go as smoothly as we had hoped. All in all, it actually didn’t go as badly as I think people say. […] I agree that it wasn’t as good as it should have been with the resources available so they made some mistakes and slipped. But in the long run these are rounding errors, they don’t matter.

Of course, many in the cryptocurrency space would disagree with Samani’s sentiment after a lot of negative news surfaced almost daily after the launch of EOS.

It’s also worth noting that Samanis Multicoin Capital has reportedly had a very large stake in EOS.

Ethereum is the best 10 year game

Samani also compared the problematic start of EOS with that of Ethereum – the platform on which EOS was built. He stated:

People seem to forget, but Ethereum in its early days in 2015 when the blockchain hit the market started with no tools and no infrastructure. People really tried to hammer this thing into the ground and the system has been quite a challenge for a while. EOS was better than that.

Still, Samani does not deny Ethereum’s leadership in the cryptocurrency space. The second ranking cryptocurrency by market capitalization has stood its ground against the competition so far, and the co-founder of Multicoin noted:

If you told me to choose a token today and come back in 10 years, I would choose Ethereum.

Litecoin ‘has no reason to exist’

Samani’s bullish mood doesn’t extend to Bitcoin’s little brother, Litecoin. In fact, he believes that Litecoin has no place in the market and says:

In my opinion, Litecoin has no right to exist. It was a fork of bitcoin. It just sat around. The only investment thesis I’ve ever heard for Litecoin is that it is a test net for Bitcoin, but that is not an investment thesis.

In fact, following the announcement and subsequent discontinuation of the credit card-like payment processing service LitePay, Litecoin is struggling to stay relevant.

“Waviness is a security”

Samani also suggests avoiding Ripple as he believes it is definitely a security, noting:

It is very clear to us that Ripple is a security. We don’t know when this news will be released, but the catalysts appear to have moved away from Ripple […] My point is, if Ripple is officially designated a security by the SEC, all crypto exchanges will stop trading Ripple. When that happens, XRP’s liquidity will run out and the price will go down.

Ripple’s Brad Garlinghouse has stubbornly denied claims that XRP was a security.

What do you think of Samani’s statements? Do you think EOS can recover from its troubled start? Is Ethereum the Best Long-Term Investment? Does Litecoin have a purpose? Is XRP a security? Let us know what you think in the comments below!

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