Ripple Official On Whether XRP Is A Good Investment In 2020: ‘Yes and No’

Long-Time HODLer Says His Confidence In XRP’s Future Is Waning, Cites Lack Of Major Developments

XRP’s value soared parabolically to an all-time high of almost $3.5 back in January 2018 during the mega bull market that started in 2017. Since then, however, the token is down 94% off its highs despite being one of the most popular projects in the crypto space.

This all leads to the very seminal investing question: should you buy XRP as an investment in 2020? Well, an official at Ripple, the fintech company behind XRP, took the liberty of answering this question -at least according to how he views it.

Josh Lin, a senior talent sourcer at Ripple Inc., posited on Quora that he thinks XRP is both a good investment and a bad investment. Here’s his explanation:

Why XRP Is a Good Investment

For starters, Lin clarified that a person wishing to invest in Ripple’s XRP would be investing in XRP the digital asset that runs on the XRP ledger and not Ripple the company since it is not publicly traded yet.

As to why he thinks XRP is a good investment, Lin noted that Ripple is actively driving utility and volume to the XRP ecosystem. Theoretically, this should increase the XRP’s intrinsic value. “But whether the bid/ask price will reflect that… I have no idea,” he asserts.


He further notes that a good investment should be judged by the team behind it, adding that his colleagues at Ripple are “among the brightest and humblest people” he’s had a chance to work with.

Why XRP Is NOT a Good Investment

On why XRP is not a good investment, Lin points out the lack of regulatory clarity around XRP

At the moment, it’s still rather murky whether the US Securities and Commodities Exchange (SEC) will classify XRP as a security. Ripple currently faces multiple class-action lawsuits alleging the company sold unregistered securities. As ZyCrypto has covered repeatedly, such a classification could have detrimental consequences on both Ripple and XRP.

On top of that, there are a lot of regulatory uncertainties in the crypto industry in general since it is still in its infancy stages.

Mitigating Factors

That said, Lin admits that he has no idea what XRP’s price will be in the future despite being an employee of Ripple. As such, he has allocated some capital -an amount he says “doesn’t keep [him] up at night”- to five cryptocurrencies he is bullish on, just to be on the safe side.

He opined that this diversification helps him to mitigate his risk of investing in XRP and the cryptocurrency industry as a whole.

Also, he recommends other lucrative opportunities outside the crypto industry like uranium, that offer better risk/reward profiles as crypto is still nascent.

XRP is currently trading at $0.199666, down 2.61% on the day. Tether (USDT) has just usurped the digital asset in terms of market cap to become the third-largest cryptocurrency on CoinMarketCap’s crypto rankings. XRP now holds the fourth spot.