In the last few weeks, Ripple XRP (XRP) seems to have fizzled off the mainstream media. Even the little news coming out about it are mostly negative, mainly related to the possibility that it could be declared a security. While this is a real concern, this risky side to XRP (XRP) seems to have taken a more central role in the news, relative to its more positive aspects. This has created an atmosphere of fear in the market, as can be seen in its price. XRP (XRP) hasn’t made any gains, in spite of the recent crypto run up, that saw Bitcoin hit a high of $8500. Actually, it’s XRP (XRP)’s competitor Stellar (XLM) that seems to be swimming in good news lately, and has seen its value surge to new heights.
But could this actually be an opportunity to buy into XRP (XRP)? One of the key principles to successful investing is to buy when everyone is fearful, and sell when everyone is greedy. Investing when everyone is fearful usually implies that the underlying asset is highly undervalued, but its value is held down by negative news or some other temporal circumstances. This may apply quite well to XRP (XRP) at this point. That’s because there is an overwhelming fear in the market with regards to XRP (XRP). Those already invested in XRP (XRP) are now in doubt about its future and are downscaling. Similarly, those considering it are now faced with what looks like better choices in other cryptos, such as Stellar (XLM) and Bitcoin (BTC).
However, a closer look at Ripple XRP (XRP) reveals a crypto that could pull a major surprise in the near future. Recently, ripple added two non-ripple validators, which means that Ripple no longer has the 80% power required to unilaterally determine the direction of XRP (XRP). This to a large extent eliminates any possibility of XRP (XRP) being declared a security. That’s because the whole idea of the SEC declaring XRP (XRP) a security is premised on its centralized nature, where ripple has full control over the network.
On top of that, ripple continues to make major moves with partnerships in the banking sector, in spite of the uncertainty. Corporations all across the world are also increasingly adopting XRP (XRP) as a mode of payment. We have recently seen Samsung adopt XRP (XRP) as a mode of payment in the Baltics. Ripple is also making huge moves in Japan and India. In India alone, ripple is aiming to control over 50% of the market, through key banks in the country. All these news are dwarfed by the whole issue of XRP (XRP) possibly being declared a security.
As such, if the SEC announces that XRP (XRP) is not a security, its price growth will be parabolic. The brave ones investing when everyone else is fearful will see the value of their holdings grow to unprecedented levels. It won’t be surprising if Ripple XRP (XRP) shoots to $10 and above under such circumstances. Everyone else would be left chasing the price, but it would be too late to reap any meaningful gains at that point.