Analyst Shares Insight Into Why Users Don’t Like Cardano(ADA) and Ripple(XRP)

Mark Yusko, the president and founder of Morgan Creek Capital Management, has said that he doesn’t think Cardano (ADA), Stellar Lumens (XLM), and Ripple (XRP) are decentralized enough to be included in his company’s asset index fund.

Yusko, who is a well-known Bitcoin bull, explained in an interview with the Thinking Crypto podcast that he believes that XRP and XLM are too closely held by centralized companies, such as Ripple Labs and the Stellar Lumen Development Foundation. He also said that these altcoins are not as freely tradable on the open market as Bitcoin and Ethereum.

The Morgan Creek Bitwise Digital Asset index fund, which Yusko launched in 2021, currently owns 75% of the total cryptocurrency market capitalization. It offers exposure to more than ten digital assets, with Bitcoin being its largest constituent with 80.9% coverage.

The fund does have a 2.2% stake in ADA, the native cryptocurrency of the Cardano blockchain. However, Yusko said that he doesn’t see ADA as being any more decentralized than XRP or XLM.

“That one [Cardano] reminds me of XRP,” Yusko said. “The people love it. But the developers and the users don’t seem to love it. And that’s the part I don’t really get.”

Yusko also said that he doesn’t think Cardano has any unique features that would make it a good investment. He compared it to other altcoins, such as Avalanche (AVAX), Polkadot (DOT), and Cosmos (ATOM), which he believes have more potential to succeed.

“I think we could make really good cases about why they could be winners,” Yusko said.

It remains to be seen whether Yusko’s views on Cardano, XRP, and XLM will affect the price of these altcoins. However, his comments are likely to fuel the debate about the level of decentralization in the cryptocurrency market.