Real Vision CEO Raul Pal explains why he owns XRP and how he sees the risk/reward ratio in crypto assets.
The former Goldman Sachs CEO said in a new interview with Thinking Crypto that he bought a position in XRP about a year ago, citing the US Securities and Exchange Commission (SEC) lawsuit against payments firm Ripple as a key factor.
“I I bought it for the reason that a) it has use cases and is being used, and b) a lawsuit is a huge risk/reward.
It’s drastically reduced, and then I looked at it and thought, “Well, what are you going to do? Does it drop 100% from here to zero? But if it’s resolved, it will be [up] 10x. And I’m like, “Well, that’s a no-brainer.” Why not take a 10-1 risk/reward with a catalyst around it? “
The SEC filed charges against Ripple last December, alleging that the San Francisco-based payments company sold XRP as an unregistered security tool during its launch. The regulator claims that XRP remains a security to this day.
Pal says his bet on XRP depends entirely on the court case.
“It’s all about the court case, isn’t it?
Because the price could not go anywhere – it was deleted from everywhere. It cannot go anywhere until it is dissolved, because the richest and most powerful country on earth is not allowed to invest in it easily.”
Ripple CEO Brad Garlinghouse said last month that he hoped the legal battle would be resolved next year.
XRP is trading at $0.814366 at the time of writing and is down -0.86% in the past 24 hours.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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