XRP may be overvalued — But still has long term potential

According to him, cryptoassets derive value from three main sources: financial, utility, and social. Financial value refers to the generation of revenue or cash flow based on the token. Utility value reflects the usefulness of the token within its network or platform. Meanwhile, social value is based on community support and user loyalty. Dorman explains that the best cryptocurrency projects ideally combine all three types of value, although one or two types may still make sense. However, he warns that individual social value—while powerful—is not sufficient without a path towards monetization or broader practical utility. Taking XRP as a case study, Dorman described the token as "insanely overvalued," pointing to its market cap at around $131 billion despite its lack of a solid financial foundation or utility. He emphasized that the value of XRP today largely comes from its long-standing brand and loyal community, adding, "It's not worthless—I just can't determine its value. It's like a very expensive call option on what it could become." He also compared XRP to GameStop, arguing that both of these assets are primarily driven by community enthusiasm. However, he noted that momentum, if directed effectively, could ultimately translate into tangible value—taking the example of GameStop's ability to raise capital and purchase Bitcoin.