Invest $1,000 in XRP Token During SEC Lawsuit Panic: What Happened?

ng for an XRP exchange-traded fund adding to optimism for the crypto market.

Recently, asset manager WisdomTree filed to establish a trust entity as a step towards launching a potential XRP ETF. This move follows in the footsteps of other companies like Bitwise who have also filed to launch cryptocurrency ETFs. With Bitcoin and Ethereum ETFs already approved, experts in the cryptocurrency space are hopeful that ETFs based on other top 10 cryptos by market capitalization like Solana, Dogecoin, and XRP could be next in line for approval.

Ripple Labs, the issuer of XRP, has had its fair share of regulatory issues with the SEC in the past. These issues could impact the approval of the ETFs and have also influenced the price of XRP. However, with SEC Chairman Gary Gensler set to resign in January and a potentially new pro-crypto White House administration coming into play, some are optimistic that past cases against cryptocurrency companies may fade away.

In July 2023, Ripple received a favorable ruling in a case dating back to 2020. U.S. District Judge Analisa Torres determined that the sale of XRP by Ripple is not considered an offer of “investment contracts,” which was a significant win for Ripple after investing a substantial amount in fighting claims that XRP was a security. While some assets can serve as investment contracts, including digital tokens, the judge ruled that XRP is not a security.

Despite this ruling, the case between the SEC and Ripple is still active, with the SEC appealing and having until January to submit additional filings.

For those who invested in XRP when the SEC lawsuit was announced, let’s take a look back at the numbers. The XRP token hit a low of $0.41055 on December 22, 2020, the day the charges were made public. It then fell to a low of $0.1748 on December 29, 2020. At that time, an investor could have purchased 5,720.82 XRP with $1,000.

If that $1,000 investment was held until today, it would be worth $8,409.61, representing a gain of 741%. This return has outperformed the broader stock market, with the same $1,000 invested in the S&P 500 ETF only being worth $1,594.15 today, a gain of 59.4%.

XRP has seen a significant price range over the past year, trading between $0.3911 to $1.62. The recent weekly gain of 36% makes it the second-largest gain among the top 10 cryptocurrencies by market capitalization, following only Cardano (+39%).

While XRP has experienced a strong surge in the last week, it is still far from its all-time high of $3.84, which was reached in January 2018.

As always, investing in cryptocurrencies comes with risks and it’s essential to do thorough research and consult with financial advisors before making any investment decisions.