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The Future of XRP: Debates and Prospects

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by Giorgi Kostiuk

a year ago


  1. XRP’s Mixed Investment Appeal
  2. Debate Over 'Old Coins'
  3. A Shifting Legal Landscape

  4. Recent discussions among cryptocurrency enthusiasts have reignited debates over XRP’s performance as an investment asset. Yasin Mobarak, founder of Dizer Capital, has voiced his opinion on the matter, acknowledging the frustrations faced by XRP holders but cautioning against abandoning the asset prematurely.

    XRP’s Mixed Investment Appeal

    In a recent post on X, Mobarak conveyed the challenges experienced by those holding XRP, labeling it a “painful” and “boring” investment. His words reflect the broader sentiment of long-term investors, particularly those who have seen XRP underperform compared to other digital assets.

    This underperformance was especially notable during the 2021 bull market, where XRP failed to surpass its all-time high (ATH) of $3.31, last achieved in January 2018.

    Despite this lackluster performance, Mobarak emphasized that the potential upside remains compelling. He referenced the 2017/2018 bull run, where XRP initially lagged behind other assets, only to surge by 66,100% in a single year. This historical context suggests that patience could ultimately reward those who continue to hold XRP.

    Debate Over 'Old Coins'

    The conversation around XRP’s future also touches on a broader debate within the cryptocurrency community about the viability of so-called “old coins,” such as XRP and Cardano.

    Raoul Pal, a veteran market analyst, has recently advised investors to shift their focus away from these assets. He argued that the strong allegiance of some investors to these coins could hinder their ability to seize new opportunities in the evolving market.

    Pal’s perspective stems partly from XRP’s performance during the 2021 bull run, where it lagged behind other cryptocurrencies. Many attribute this underperformance to the legal challenges Ripple faced at the time.

    The U.S. Securities and Exchange Commission (SEC) had filed a lawsuit against Ripple, accusing the company of conducting unregistered securities offerings through the sale of XRP. The ongoing litigation created uncertainty, discouraging potential investors and stifling XRP’s price growth.

    A Shifting Legal Landscape

    However, the resolution of the SEC lawsuit has changed the outlook for XRP. The court ruled in favor of Ripple, declaring XRP a non-security. This outcome has been seen as a significant legal victory, restoring confidence in XRP’s legitimacy as an asset. With this legal cloud lifted, some market observers believe the digital asset is better positioned to participate in the current bull market.

    Nevertheless, Raoul Pal remains cautious. He continues to warn investors about the potential pitfalls of maintaining a “cult-like” devotion to older coins like XRP. He suggests that such an approach could lead to missed opportunities as the market evolves and new assets emerge.

    While XRP has proven to be a challenging and sometimes disappointing investment, its potential for future gains cannot be dismissed. The cryptocurrency market is dynamic, and XRP’s previous surges suggest that significant opportunities may still lie ahead for those willing to endure the uncertainty.

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