JPMorgan, a renowned global banking institution, has recently been at the center of a controversial claim by Ben Armstrong, a prominent figure in the cryptocurrency community. Armstrong has asserted that JPMorgan has invested significantly in XRP, a digital asset linked to the technology company Ripple. This statement has stirred reactions within the crypto industry, particularly from former Ripple Director Matt Hamilton.
Armstrong’s claim and its inconsistencies
Ben Armstrong, known for his influence in the crypto sector, recently claimed that JPMorgan has acquired over 7.5 million XRP tokens. According to Armstrong, this move indicates the bank’s growing interest in cryptocurrency. He suggested that this acquisition, despite the ongoing legal challenges faced by Ripple, shows a strengthening confidence in XRP’s prospects.
However, Armstrong’s claims raise substantial questions about their validity. He stated that this investment represented about 7.5% of JPMorgan’s total wealth. This figure, when examined, appears grossly inaccurate. With 7.5 million XRP valued at approximately $4.46 million, Armstrong’s assertion implies a total wealth for JPMorgan of around $59.46 million. This starkly contrasts with JPMorgan’s reported $3.89 trillion in total assets, per their 2023 valuation. Such discrepancies have led to skepticism and criticism from various industry experts.
JPMorgan’s supposed XRP buy raises doubts among analysts
Matt Hamilton, a former director at Ripple, doubts Armstrong’s claims. He pointed out that if JPMorgan purchased 7.5 million XRP, it would equate to a mere 0.0075% of XRP’s total supply, a figure hardly significant enough to impact the market or indicate a major strategic move by the bank.
Hamilton further challenged the accuracy of Armstrong’s statement regarding the percentage of JPMorgan’s wealth represented by this alleged investment. Using JPMorgan’s $3.5 trillion valuation for total assets, he calculated that 7.5 million XRP would represent only a minuscule 0.00013% of the bank’s assets, a far cry from the 7.5% claimed by Armstrong.
Daniel, CTO at Eminence, also expressed disbelief that JPMorgan had acquired a substantial amount of XRP. He and others found the claim’s lack of evidence and mathematical inaccuracies to be a source of skepticism.
This is not the first time such claims have surfaced. Similar assertions regarding JPMorgan’s involvement in XRP surfaced last year but were quickly debunked due to their unsubstantiated nature and calculation errors. Originally introduced by an unnamed source, they aimed to create a false impression of institutional adoption of XRP. The narrative, now revitalized by Armstrong, is undergoing renewed scrutiny.
With the resurgence of these claims, some individuals are raising concerns about the credibility of Armstrong’s sources and whether his account may have been compromised to spread misinformation. This ongoing saga underscores the importance of accurate and verifiable information in the cryptocurrency sector, especially regarding major financial institutions like JPMorgan.