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- Today, the CEO of Morgan Creek Digital Mark Yusco raised his opinion in an online program of cryptocurrency media Thinking Crypto as why he avoids working on the fund with Ripple (XRP) and Stella (XLM).
- He was pointing towards the Morgan Creek Bitwise Digital Asset Index Fund, it was the joint fund that he formed with the asset manager Bitwise in 2018.
- He endorsed the utility tokens as “shit coins,” as 99% tokens will go to zero as he finds it pre-seed stage venture capital, which has a very low hit rate.
Today, the CEO of Morgan Creek Digital Mark Yusco raised his opinion in an online program of cryptocurrency media Thinking Crypto as why he avoids working on the fund with Ripple (XRP) and Stella (XLM).
Each affiliated company upholds a massive proportion
The reason behind targeting the funds of these entities is that each affiliated company upholds a massive proportion. He said he is concerned that the degree of transactions is low whereas the supply volume is managed centrally.
Currently, Mark Yusko is the CEO and CIO of Morgan Creek Capital Management. Before this, he was the Founder and CIO of the UNC Management Company.
The virtual currency index products of Morgan Creek aim to be positioned like the S&P 500 in the digital currency ecosystem. Yusko stated that a leading automobile industry player, Tesla has not been selected for the index yet due to the high shareholding ratio some shareholders that might manipulate the price.
However, it is totally up to the token business model. The Morgan Creek cryptocurrency index depicts that it will escape stocks that carry high token holding ratios by some groups.
Yusco further added he can keep XRP into indexed products if more tokens allow for free trading.
The Morgan Creek Bitwise Digital Asset Index Fund
During the show, he said
“We exclude anything… that’s too closely held, so we don’t own Stellar and we don’t own XRP.”
He was pointing towards the Morgan Creek Bitwise Digital Asset Index Fund, it was the joint fund that he formed with the asset manager Bitwise in 2018.
This index tracks the top ten cryptocurrencies that capture over 80% of Bitcoin (BTC). As found the largest holder of XRP tokens, Ripple who holds around 6.5 billion XRP under its control created controversy for its position which made a large sell-offs by its executives.
Apart from XRP, Yusco predicted that the majority of tokens will drop zero as they signify bets on companies with a few chance few success. He endorsed the utility tokens as “shit coins,” as 99% tokens will go to zero as he finds it pre-seed stage venture capital, which has a very low hit rate.
