Crypto’s reputation for wild swings is well-earned, and the past few days have been no exception. The market went into overdrive on Sunday as Trump unveiled his plans for a Strategic Crypto Reserve.
While the announcement itself was less surprising, the details caught many off guard. As expected, Bitcoin (BTC) made the cut, but what really raised eyebrows was the inclusion of four other cryptocurrencies, including Ripple (XRP), which has been locked in a legal battle with the U.S. Securities and Exchange Commission (SEC) since 2020.
XRP surged on the news, but in true crypto fashion, the euphoria was short-lived. Within 24 hours, it came crashing back to pre-announcement levels. But as anyone involved with crypto long enough will tell you, participation is recommended only for those who can stomach the ride.
So now that the dust has settled, is this a prime buying opportunity before the next leg up? According to top investor James Foord, XRP looks enticing at these levels.
“XRP is fast, has small fees and is energy efficient. These three points are what make it stand out from its competitors,” the 5-star investor said. For this reason, it has piqued the interest of large institutions in the financial sector, like banks and even Central Banks.”
That said, not all crypto enthusiasts are fans of XRP. With Ripple Labs controlling a large part of the supply, the coin is very centralized, thereby breaking one of the core tenets of crypto’s value proposition – decentralization (the other two being security and scalability).
However, Foord does note that a significant portion of this supply is held in escrow, which means it is temporarily locked. Each month, 1 billion XRP is released from escrow to Ripple, which can then be utilized for investments, partnerships, or transactions. “The escrow system does help stop the coin from being diluted, but it still leaves a large part of the supply in the hands of one party, which a lot of crypto proponents oppose,” Foord explained.
Nevertheless, while Foord concedes that as with many cryptocurrencies, determining a precise value for XRP is difficult, the current positive sentiment, coupled with its growing adoption, indicates that its price could rise in the near future.
“All in all,” Foord summed up, “the recent endorsement of XRP by the administration is a step in the right direction. It’s hard to measure exactly what the effect will be on demand, but with institutions and now the government buying XRP, I think a new high is likely.” (To watch Foord’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.