In a recent interview, former Goldman Sachs executive Raoul Pal explained why he has invested in XRP shortly after the U.S. Securities and Exchange Commission (SEC) brought a lawsuit against Californian FinTech firm Ripple over the allegedly illegal sales of XRP (which it considers to be an unregistered security).
Prior to founding macro economic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.
According to a report by The Daily Hodl, Pal said he had two main reasons for investing in XRP:
“I bought it for the reason that A) It does have use cases and it is being used, and B) The court case is a phenomenal risk/reward.
“It got heavily discounted in the price, and then I looked at it and thought, ‘Well, what’s it going to do? Fall 100% from here to zero? But if it gets solved, it’s [up] 10x.’ And I’m like, ‘Well that’s a no-brainer.’ Why would you not take a 10-1 risk/reward that has a catalyst around it?“
Yesterday (December 8), around when XRP was trading around $8086 on Binance, popular pseudonymous crypto analyst “Credible Crypto” told his over 278K Twitter followers that the “bottom is in.|
According to data by CryptoCompare, currently (as of 11:05 a.m. UTC on December 9), XRP is trading around $0.904, up 11.15% in the past 24-hour period.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.