This crypto soared 32,377% in 2017 - But here's why you should avoid it in 2018
Imagine if you made a 32,377% return in one year…
It would've turned a R1,000 investment into R323,770!
Well the incredible thing is one crypto managed to achieve exactly this in 2017.
Ripple's XRP coin - the third largest crypto by market cap today.
But despite such an incredible run last year, here's why you must avoid it in 2018.
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Recently, a US Securities Exchange Commission (SEC) official, Bill Hinman, at a Crypto Conference stated the SEC didn’t view bitcoin or ether as securities. Therefore, they won’t be regulated.
The SEC believes XRP is a security
This is good news for both cryptos.
Had the SEC deemed ether or bitcoin, securities, crypto investors would’ve likely faced a massive sell-off, because of uncertainty on how regulation would apply to exchanges, ownership, and markets.
However, the SEC didn’t mention anything about Ripple’s XRP coin NOT being a security.
While, Ethereum and Bitcoin both rose because of this news, the opposite happened to Ripple. It’s down nearly 50% in the last two months alone.
So why does the SEC deem XRP a security?
XRP=Not a true decentralised system
Well, Ripple, the company behind the XRP coin still owns over 60 billion of the 100 billion XRP tokens ever created.
In fact, an ongoing lawsuit in the US claims that XRP was created out of thin air as part of a “never-ending initial coin offering” used to “raise “hundreds of millions of dollars”.
So, it’s almost like the company issued “shares” to investors to raise capital – just a like a normal listed company would do.
This means, because Ripple owns more than half the supply of XRP, the token is not truly decentralized.
That’s the pivotal issue XRP faces.
Bill Hinman focused on the idea that Bitcoin and Ethereum have no central power. They are truly decentralized systems. Whereas, Hinman said about XRP and Ripple, “There will continue to be systems that rely on central actors whose efforts are a key to the success of the enterprise.”
So, what should you do?
Avoid Ripple’s XRP right now
There are a number of cryptocurrencies you shouldn’t touch with a 100m pole.
And Ripple is one of them.
In fact, at the beginning of 2018, Crypto expert, Sam Volkering revealed his “2018 Crypto Roadmap”. Inside he warned investors about the one crypto to avoid this year.
And interestingly, it was Ripple’s XRP coin. So, it looks like Sam was spot on with his prediction that investors shouldn’t touch ripple.
Now If you don’t know, Sam also revealed another “9 cryptos to avoid at all costs”.
Discovering what they are could end up saving you a lot of money.
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