Ripple (XRP) investors have been celebrating after a US judge ruled in their favor last July. The ruling stated that XRP was not a security for retail sales but was for institutional ones. However, the Securities and Exchange Commission (SEC) appealed the decision.
The SEC dropped its appeal last week, ending the case. This news sparked a surge in XRP’s price and led to speculation about buying XRP at current prices. Top investor Adam Spatacco says that while he thinks XRP’s prospects are looking brighter, he doesn’t see it as a compelling buy due to its high valuation.
XRP’s market cap is around $144 billion, which is roughly double that of PayPal’s. This raises questions about whether the current valuation is justified. Spatacco notes that winning the SEC case doesn’t automatically translate to immediate expansion opportunities.
For example, while XRP has gained traction in some places like Japan, its adoption still lags behind traditional payment processors. Additionally, the presence of a prominent investor like PayPal makes it challenging for new entrants like Ripple to gain significant market share.
As Spatacco points out, he has seen good news from the SEC decision and thinks XRP’s prospects are looking brighter. However, he believes that the current price point may be too high for investors to consider buying XRP.
Source: https://www.tipranks.com/news/dont-pull-the-trigger-says-top-investor-about-ripple-xrp