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An unnamed Ripple executive believes XRP and XLM, two assets with similar functionalities, could serve as the Pepsi and Coca-Cola of the coming financial revolution in terms of central bank utility.
Francis Hunt (The Market Sniper), a veteran trader and technical analyst, revealed this while speaking with Versan and Vandell Aljarrah in the latest episode of the Black Swan Capitalist podcast.
XRP and XLM: An Uncanny Similarity
“Do you believe that these two technologies are going to be the foundation of what’s yet to come,” Versan asked Hunt, pointing to the similarities between XRP and Stellar (XLM) in terms of their underlying technologies and their price movements.
Recall that Jedd McCaleb, one of the original architects of the XRP Ledger (XRPL), launched the Stellar network in 2014. Before this, McCaleb served as the Chief Technology of Ripple until 2013 when he left. Being one of the original architects of the XRPL, McCaleb’s Stellar blockchain has similarities with the original ledger.
Interestingly, XLM, the native token of the Stellar network, has continued to mirror XRP’s price movements. When XRP rallied to an ATH of $3.3 in January 2018, XLM also surged to an ATH of $1.05. Upon XRP’s collapse the next month, XLM also dropped. XLM also mirrored XRP’s surge in April 2021 and similar surges this year.
XRP and XLM Akin to Pepsi and Coca-Cola?
In the Black Swan Capitalist episode, Versan called attention to these similar price movements, asking for Hunt’s opinion on the role both assets could play in the coming financial revolution.
In response, Hunt disclosed that his community has a high-ranking Ripple executive who has insider knowledge on the workings of the company. While he failed to mention who this executive is, Hunt revealed that the individual likens XRP and XLM to the Pepsi and Coca-Cola of the financial scene.
The rationale behind this classification is that XRP and XLM are going to fulfill the “same functions,” according to the unnamed Ripple executive. Notably, both assets would become useful in the upcoming financial revolution in terms of central bank utility. This already happens on a small scale.
“He mentioned that one or two of the Middle Eastern players, some that were committed potentially to the one, automatically said that other of the nation states that are typically a little bit adverse, would go with the other one,” Hunt remarked.
In essence, while the central banks of different nations would adopt XRP or XLM, both assets would provide similar functionalities. Additionally, the two assets would likely dominate the financial scene much like how Pepsi and Coca-Cola have taken a huge chunk of the soda industry.