More FUD to digest.....Weiss Ratings
"First, the parent company Ripple is relying heavily on making deals with banks and financial institutions, helping them “tokenize” their fiat to cut costs and time by transacting via the Ripple protocol.
But the Ripple network is merely a transfer vehicle, used to transact from fiat to Ripple and back to fiat. What’s more, banks are not even obligated to use the XRP token for these transactions at all, notes Villaverde. He states:
In fact, a whole new set of tokens will be issued for each fiat currency, much like gold trusts or funds issue shares of gold. This process, called ‘tokenizing,’ bypasses the need to use the XRP token in the first place.
In other words, investors FOMO-ing into buying up XRP tokens upon every partnership announcement from Ripple could be left holding some hefty bags.
Second, since Ripple is not a public company—and XRP tokens are not shares—the owners of these digital tokens are not entitled to the company’s potential profits. One can even think of XRP tokens as merely “demo” digital tokens to woo banks. That’s it."