Morgan Creek Fund bans Ripple’s XRP alike cryptos from its new crypto repository
The controversy related to whether or not Ripple’s XRP should be considered as a security has appeared one more time as today it was excluded in the launch of the Morgan Creek Fund, a crypto related fund that provides its users the possibility of accessing some of the top cryptos in the market.
In this sense, whenever we mention ‘top cryptos’ we cannot avoid thinking of Ripple (XRP), the third largest cryptocurrency by market capitalization. However, as it seems, the third largest crypto is just not being considered by the fund because of centralization issues. Let’s see all of the details on this.
Morgan Creek Fund
The Morgan Creek Fund was created in collaboration with Anthony Pompliano, who formerly was the owner of a firm called Tilt Capital, a company that was acquired by Morgan Creek at the beginning of the year for an amount that has been undisclosed since the partnership started.
Earlier this year we knew by Pampliano himself that he would like to focus primarily on crypto, but it wasn’t till Morgan Creek managed to partner with the fund-sponsor Bitwise Investment Advisors, LLC; when the project started to shape.
Let’s recall that earlier this year, Bitwise launched as well a crypto-related fund dubbed HOLD 10. However, Hunter Horsley, co-founder of Bitwise clarified that the main difference between the two projects centers on the committee, as Mark Yusko, CEO of Morgan Creek, Pompliano, and Matt Hougan, head of the research at Bitwise, are a part of the board of advisors.
With relation to the fund, it was known that it carries $1.5 billion in assets, and they will provide pensions, wealthy families, endowments and accredited investors with an exposure to cryptos such as Ethereum (ETH), Zcash, Monero, Litecoin (LTC), Omisego, Bitcoin cash (BCH), EOS, Dash, Ethereum classic (ETC), and of course Bitcoin (BTC).
Among the excluded coins we can find Ripple (XRP), TRON (TRX), Stellar (XLM), Cardano (ADA), and other tokens that in accordance to Morgan Creek may represent a risk in the future.
Regarding this, Pompliano stated that,
“If there’s a central party that owns 30% or more of supply” that would be enough reason for the index to ban that crypto of the fund. He continued by saying that those coins holding high percentages of their own crypto have great opportunities to control the way the coin will perform, and that simply “introduces a lot of additional risks that may not be there if it was a more decentralized network.”
With relation to this, all of the coins that fit in this description are considered pre-mined cryptos, coins that were mostly created in the early stages of the blockchain. For its part, Horsley states in this matter that,
“with decentralization being a cornerstone of most blockchain designs, having a large portion of assets held centrally runs counter to that and could create complexities that differ from what we would expect from public blockchains”.
The decision of the Morgan Creek fund definitely represents a low blow for Ripple, which has made significant efforts to dispel the rumors of their centralization issues. Nonetheless, the company continues occupying the third place in the market concerning market capitalization.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
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