A new Quora response is in the cryptocurrency news today where Josh Lin, who is a senior talent sourcer at Ripple, says that it is unclear whether XRP is good investment or not. Anyways, he is also uncertain whether Ripple’s efforts to boost the XRP ecosystem will also boost the price of the third largest coin out there.
The Quora response shows how Lin approaches a direct question on whether XRP is a good investment by drawing a line. In that manner, he begins by saying:
“Yes and no. Let me explain.”
The talent sourcer at Ripple says that he is confident in his team at Ripple and the legitimacy that the company is bringing to the XRP cryptocurrency. However, he is less certain whether those moves will actually impact the crypto market.
“Ripple is driving more utility and volume to the XRP ecosystem, which in theory, should increase the intrinsic value of XRP. But whether the bid/ask price will reflect that… I have no idea.”
Josh Lin is also quite unsure and says that XRP is a good yet tricky investment when it comes to the regulatory environment surrounding the cryptocurrency. His statement in the Ripple news best shows this – he was quoted as stating the following:
“There is still uncertainty of whether the SEC will rule XRP to be a security of Ripple (as of when I’m writing this anyway). Because the crypto sector is still nascent, there are a lot of regulatory uncertainties.”
Ripple is now facing lawsuits alleging that the company illegally sold XRP as an unregistered security and breached US securities law. However, the cryptocurrency project says that XRP is an independent asset and cannot be a security because investors are not shareholders in the company.
Lin said that he allocates a small amount of capital that “doesn’t keep [him] up at night” to five different cryptocurrencies. He allocates the other 95% of his portfolio into investment opportunities which according to him, currently offer a better risk/reward profile.
“There are more asymmetric opportunities in the world today aside from crypto. These are opportunities that yield 5 – 10x+ returns, and they currently offer better risk/reward profiles (uranium, anyone?) than crypto, since the crypto market is still so nascent,” Lin concluded.
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