Prominent Hedge Fund Exec Blasts Cardano And XRP As “Cult Meme Coins”

06.07.2024 / Payment system news

Former Goldman Sachs analyst turned Bitcoin (BTC) maximalist Murad Mahmudov has fired shots at Ripple-promoted XRP and Cardano’s ADA.

Mahmudov called the two major cryptocurrencies “cult meme coins.” “This is the cycle when people are finally realizing that XRP and ADA were nothing other than Cult Memecoins all along,” he asserted in a post on his social media profile on X.

Just last week, the prominent financial strategist shared some advice for those investors who want to foray into the fast-growing meme coin ecosystem, saying they should focus on projects whose present market valuation ranges between $5 million and $200 million. According to Mahmudov, a meme coin that did not spend several weeks trading sideways under a $10m market capitalization is a scam. 

He also envisions altcoins outshining every other sector of the crypto market in the current cycle. Regardless, he does not anticipate a major altcoin season because U.S. household savings have been eroded.

XRP boomed during the 2017 bull market, registering gargantuan gains and turning Ripple founders into some of the richest people in the world. According to CoinGecko, XRP is the eighth largest digital asset with a market cap of $23 billion. It was created to move money across borders. The token is still down 87.6% from its all-time high of $3.40 set in January 2018, despite securing partial regulatory clarity last July.

Similarly, Cardano’s ADA, which made waves with stunning price growth during the last bull cycle, is in the same situation. ADA has lost as much as 88.8% of its value since setting a record high of $3.09 in September 2021.

“Institutions will mostly buy $BTC. Maybe a little $ETH. Retail will mostly buy Memecoins. This is why Tech Alts are underperforming. No one wants them,” Mahmudov added in a different X post.

Mahmudov came to the spotlight by helming crypto hedge fund Adaptive Capital. Notably, Adaptive Capital shuttered all operations after taking heavy losses during the March 13, 2020, crypto market meltdown, which saw the BTC price nosedive to a low of around $3,750.