An XRP community influencer believes investors would only need 500 XRP to become millionaires if certain events in the XRP ecosystem occur.
Amid XRP’s penchant for solo rallies, several industry players have forecasted astronomical gains for the asset in the foreseeable future. One such individual is Kenny Nguyen, who believes investors would only need 500 XRP to become millionaires if certain events in the XRP ecosystem occur.
A renowned crypto YouTuber, Nguyen has continued to champion the narrative that XRP would record massive price gains if the market witnesses some events. Two of these events have already materialized, with three left to go.
Here is the recap I posted numerous times…
1. Ripple Victory. ✔️ ✅️
2. Exchanges Relist XRP. ✔️ ✅️
3. Ripple IPO Across Stock Exchanges.
4. XRP As Bridge Currency for CBDC.
5. XRP As US Reserve Currency.
And yes, with only 500 XRP, you will become Millionaire! 💎 👍
— Kenny Nguyen (@mrnguyen007) July 14, 2023
Victory for Ripple
The first event is a victory for Ripple in the multi-year lawsuit with the US SEC. Judge Analisa Torres, presiding over the case, delivered a ruling on Jul. 13. The Judge ruled that most of Ripple’s XRP sales did not constitute securities besides institutional sales.
More importantly, Judge Torres ruled that XRP in itself is not a security. The XRP community regards this decision as a victory for XRP. Expectedly, the asset rallied by 99% from $0.4710 to $0.9380 that day. Despite opposition stationed by the bears, this rally exemplified XRP’s potential for growth.
Major Exchanges Relisting XRP
Notably, several American and Canadian exchanges delisted XRP in the wake of the SEC lawsuit. These exchanges aimed to avoid getting caught in the crossfire as Ripple and the SEC contested XRP’s status as a security.
However, following the ruling by Judge Torres, it became clear by law that XRP itself is not a security. This triggered a wave of re-listings by several top exchanges, including Coinbase, Kraken, Crypto.com, Bitstamp, and BitGo. This contributed to a massive increase in demand and trade volume.
Speculations of a Ripple initial public offering (IPO) have recently emerged. Notable industry players forecast that Ripple could launch its IPO sometime after the conclusion of the SEC lawsuit as it makes efforts to go public.
Proponents have projected conjectures of Ripple’s valuation once it goes public. Notably, attorney John Deaton, who represents over 75K XRP holders in the SEC lawsuit, predicted a valuation of $100 billion for Ripple should XRP hits $2. According to Nguyen, the Ripple IPO should catalyze another XRP price surge.
XRP as CBDC Bridge Currency
Due to its close ties with XRP, Ripple leverages XRP for some of its products. The technology company uses XRP for its ODL offering as a result of the XRP Ledger’s cost-effectiveness and speed.
However, when it launched in May, Ripple failed to put up XRP as a necessary component of its CBDC platform. The company presented firms with an opportunity to use or ignore it. This was due to the regulatory uncertainty surrounding XRP, which could discourage some institutions from leveraging it.
With the recent ruling from Judge Torres, the clarity accorded to XRP would generate more interest from financial institutions to use the asset. As a result, Ripple can comfortably position it as a bridge currency for CBDC transactions. According to Nguyen, this move should also help trigger a further price increase.
XRP as US Reserve Currency
Some members of the XRP community believe XRP has the potential to transcend the offerings typical of the crypto ecosystem. They believe the asset could someday serve as the reserve currency for the United States or even the world.
Mark Philips, Director of Strategic Communications at the National Defense University in Washington, published an article on this theory in April 2019. While most community members dismiss this as wishful thinking, others, like Nguyen, think it is possible.
The Ambitious Forecast: How Feasible?
Nguyen believes that if all these events occur, an investor could make $1 million by just holding 500 XRP. At the time of writing, 500 XRP is worth $367 at $0.7359 per XRP. For $367 to appreciate to $1 million, it would take a price surge of 272,379%.
This means that XRP would need to rally by over 271,676% to reach a price of $2,000. Supposing XRP’s circulating supply remains at 52.5 billion, a price of $2,000 would take XRP’s market cap to $105 trillion. For context, gold, the most valuable asset, has a market cap of $12.9 trillion.
There isn’t enough money to sustain a $105 trillion market cap for XRP. This makes the forecast unlikely to occur. However, the crypto market remains unpredictable, and the possibility of XRP hitting $2,000 cannot be completely ruled out, especially considering that the asset is deflationary in nature.