Crypto Currency News
Bitcoin
-423.84
Litecoin
-4.01
DigitalCash
-0.8
Monero
-0.63
Nxt
-0
Ethereum Classic
+0.06
Dogecoin
-0
Ethereum

If you had invested $ 1,000 in XRP 5 years ago, now you would have:

Has XRP paid off for early investors or did an SEC lawsuit cause irreparable damage?

XRP is a cryptocurrency that has delighted enthusiasts from the start. It’s the native coin for Ripple, an ambitious payment system set to replace SWIFT as the method banks use for international money transfers.

The project was not without its setbacks. Most notably, the SEC filed a lawsuit against Ripple in late 2020 for selling unregistered securities, particularly its XRP coin. As a result, it was no longer listed on most of the leading cryptocurrency exchanges, saw a sharp drop in prices and the year 2021 has been a little quieter so far compared to other popular coins. While Bitcoin, Ether, and many other cryptocurrencies have hit all-time highs, XRP still hasn’t peaked in 2018.

Despite the fact that XRP didn’t break new records, it did well for those who got in early. If you bought $ 1,000 five years ago it would be six digits now.

The growth of a $ 1,000 investment in XRP

Five years ago, you could buy XRP for just over half a cent. At this low price, you would have bought roughly $ 173,000 in a $ 1,000 purchase.

The price of XRP is now $ 0.85. With that massive increase, your previous investment of $ 1,000 would now be worth over $ 147,000.

That’s an increase of more than 14,000%, which shows how much money can be made with the right cryptocurrency. However, as you will see from the history of XRP prices, knowing when to buy and when to sell is not always easy.

A history of XRP pricing

Here are the most notable price points XRP has hit over the years:

  • The earliest recorded price of XRP on CoinMarketCap was $ 0.005874 on August 4, 2013. Barring a few brief price hikes, it would stay below $ 0.01 through 2017.
  • The second quarter of 2017 was XRP’s first major breakthrough. Ripple has added several financial institutions to its payments network and further decentralized its XRP ledger. In May of this year, prices hit over $ 0.40.
  • XRP skyrocketed in late 2017 during the crypto boom. It hit $ 3.84 on January 4, 2018, which is still its all-time high.
  • The price crashed almost as quickly as it had risen, and was below $ 1 at the end of January 2018.
  • While there have been the occasional price hike, XRP has been on the downtrend and was worth less than $ 0.15 in March 2020.
  • When crypto entered a bull market in the second half of 2020, XRP followed suit, cracking $ 0.75 in November. But the SEC lawsuit slowed its momentum, sending the price back below $ 0.30 in December.
  • XRP bounced back in 2021, nearing the $ 2 mark in April.

Is XRP a Good Buy?

XRP was a fantastic investment for buyers who got in early enough, and especially those who sold around the peak in early 2018. But that is the past. It’s harder to tell whether it’s a good investment now.

A plus for XRP is that Ripple has hundreds of partnerships with its international payment technology. The best-known partners include:

  • American Express
  • Bank of America
  • Santander

A lot of them use Ripple, not necessarily XRP, but Ripple’s success is still good news for its cryptocurrency.

XRP, on the other hand, has a cloud over it with the SEC lawsuit. Because of this lawsuit, most crypto exchanges don’t even allow XRP to be bought and sold. These include the largest US exchange Coinbase, which stopped XRP trading in January. Even if you want to buy XRP, it is not easy to do, even though Coinmama is an exchange that offers it.

The halfway crystal clear view is that XRP could pay a price hike if Ripple survives the lawsuit. But as it stands now, it’s still a gamble. If you do decide to buy something, make sure that you are only investing what you are happy to lose.

Comments are closed.