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Ripple: Ex-Goldman exec says XRP lawsuit “is a phenomenal risk-reward”

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“Well, that’s a no-brainer.” Why not get 1-10 risk and reward with a catalyst around it? “

Raoul Pal, the former head of European Hedge Fund Sales – Equity and Equity Derivatives, said in an interview that the SEC’s lawsuit against Ripple made XRP very attractive as an investment.

The current founder of Global Macro Investor and Exponential Age Asset Management spoke to Youtube’s Thinking Crypto about BTC, ETH, regulation, metaverse, NFTs and overall investing, but the risk/reward ratio on XRP was a highlight.

Raul Pal said he bought XRP about a year ago when a lawsuit was filed with the SEC and precisely because of the lawsuit.

“I bought it for the following reasons: a) it has use cases and is being used, and (b) the court case is an enormous risk and reward.”

He also detailed what he considered the risk reward for XRP at the time: 10 to 1.

“It got drastically reduced, and then I looked at it and thought, ‘Well, what are you going to do? Do you fall 100% from here to zero? But if it is solved, it will be 10 times. And I’m like, “Well, that’s a no-brainer.” Why not take a 10-1 risk/reward with a catalyst around it? “

If Raul bought XRP at the time of the lawsuit, the cost of each XRP could be between $0.20 and $0.50, which is the price range between December 22, 2020 and early April 2021.

Since the lawsuit is not over and assuming nothing has changed in terms of risk/reward besides price, the r/r at current prices – XRP at $0.90 – may still be a buying opportunity for investors after Raul Pal accounts where his target could be around $2 and $5 Per unit.

The video can be found here (32:41)

The lawsuit has frustrated many investors along the way. The settlement shows no signs of happening soon, but Judges Sarah Netburn and Annalisa Torres have been lauded by many, including Ripple CEO Brad Garlinghouse.

In the court case, Judge Netburn recently allowed the parties to re-brief the privilege of the trading operation in the context of the SEC’s refusal to hand over documents on the agency’s views on BTC, ETH, XRP, and more that could be crucial to Ripple’s fair notice defense.

A few days ago, John Deaton, a lawyer for the XRP Holders, made a somewhat controversial statement about the state of the crypto space issue after filing a lawsuit should Ripple win, stating that only BTC and XRP would be safe.

More on Ripple here!

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