The crypto world has been in an optimistic mood since Trump’s election win, with the new administration having a very favorable crypto stance. In a break from the past, this administration has plenty of crypto enthusiasts amongst its members.
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One coin that has benefitted in a big way from Trump’s election win is Ripple (XRP). The token has been on one almighty surge since early November, soaring by more than 500%. And there are several reasons why investors have been getting behind this coin.
For one, XRP has been involved in a legal battle with the U.S. Securities and Exchange Commission (SEC), which alleged Ripple sold XRP as an unregulated security. Ripple has had a partial win here in that the court decided its institutional sales of XRP violated securities laws, but its programmatic sales on digital asset exchanges did not constitute securities transactions. The SEC subsequently filed an appeal challenging the court’s ruling regarding programmatic sales and the case is still unresolved. With crypto foe and previous SEC chair Gary Gensler now gone, the prospect of a Trump-backed new chair and a much friendlier regulatory backdrop has XRP investors hoping the case might even get dropped altogether. So that has been a source of optimism.
Another key development is the potential launch of a spot XRP ETF. Currently, seven investment firms, including some with existing spot Bitcoin ETFs, have filed applications with the SEC. This has increased optimism about an eventual approval, making it feel like an XRP ETF will happen at some point in the not-too-distant future.
While these are positive developments to consider, the real question is: is all that already baked into the price? That is especially pertinent considering the big rally.
Weighing up XRP’s prospects, 5-star investor Dominic Basulto is “not convinced that XRP has as much upside as other top altcoins.”
“Namely,” said Basulto, “I want to see that pesky SEC case settled once and for all. I want to get much more clarity on a potential spot ETF launch. And I want to see smart-contract functionality added to the XRP blockchain.”
Until all that takes place, expect XRP to behave similarly to a meme coin. “It will soar in price based on hype and speculation, and it could quickly give back all those gains as soon as the hype fades,” Basulto went on to add.
While investing in XRP right now might look appealing, Basulto notes that XRP has never traded above $4 in its history. With the coin now going for $3.11, with such limited upside potential, the investor believes it is hard to “justify a significant investment in what remains a risky, highly volatile cryptocurrency.” (To watch Basulto’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
