Ripple XRP’s True Value: Jeff Dorman Says It’s All Social Hype, Not Real Utility

• Crypto invested pointed out that XRP holds value through social capital, not utility or financial performance.
• Ripple markets XRP as institutional tech, but real usage remains minimal and speculative.
• XRP is seen as a costly bet on future utility, powered by brand loyalty and community hype.

According to crypto investor Jeff Dorman, XRP is an “insanely overvalued asset”, deriving its entire worth from social capital rather than fundamental utility or financial performance. “Because there is no financial value, there is no utility value, it’s 100% just social value,” Dorman stated during a recent YouTube discussion.

Despite his critical assessment, Dorman acknowledges that social capital shouldn’t be dismissed as a value driver. Drawing parallels between XRP and GameStop, he points out that both leveraged strong community support and brand recognition to create opportunities in the absence of traditional fundamentals. 

Dorman says XRP isn’t worthless

“It’s not worthless. I can’t define what it’s worth, but it’s not worthless because it’s basically just a really, really expensive call option on what it could be in the future based on the fact that it has cornered that social value,” Dorman explained.

Ripple has managed to position itself as synonymous with institutional blockchain technology adoption, with CEO Brad Garlinghouse and his team continuing to push XRP as the solution to institutional finance and cross-border payments even as the real-world usage of XRP for these purposes remains minimal.

Dorman likens Ripple’s approach to a “fake it until you make it” strategy, suggesting that possessing sufficient market faith and capital would potentially create actual usefulness in the end.

Related: XRP Price Prediction for May 7: Will Support at $2.10 Hold Amidst Bearish Momentum?

For investors, this makes XRP especially hard to value. Ordinary metrics don’t factor in the reason why XRP is so valuable today, but excluding social value altogether could be overlooking a real asset class. 

Dorman admitted that he personally avoids investing based on social value “because I can’t figure out what that’s worth,” yet he still acknowledges it as a legitimate type of value.

As XRP weathered its price path through ETF speculation and regulatory news, market participants are faced with the fundamental question of whether Ripple can convert its considerable social capital into enduring financial value. If so, early adopters may be justified. If not, XRP’s valuation may eventually be forced to undergo a harsh reality check against actual utility and adoption numbers.