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TikTokker mortgages house for $500K to buy XRP, now losing money

source-logo  crypto.news 28 May 2023 13:32, UTC

A TikTok influencer who reportedly mortgaged his house for $500k to invest in XRP, the native currency of the XRPL and coin used by Ripple, is losing money and unable to recoup his initial capital, data on May 28 shows.

TikTokker reportedly sold house to invest in XRP

The social media personality, who goes by the name Money_talk_tok on TikTok, a platform for creating and sharing videos, reportedly sold his house for $500k on Feb. 24, 2022, and told his over 50k followers that he would invest in XRP.

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Based on his analysis of the market then, he determined that the cryptocurrency market was in extreme fear. His move was to double down on the market and go against the trend of others.

After conducting a sentimental analysis, the TikTok user concluded that the XRP market had reached its lowest point and had the potential to bounce back. Therefore, he invested all their $500k into XRP, citing the mantra of being “greedy when others were fearful.”

At the time of his XRP investment, the coin was trading at $0.69, and the Fear & Greed Index, a popular tool used by market participants to gauge sentiment, stood at “23”.

A post on Reddit reveals that the TikTokker still holds XRP, explaining that he has not lost money since he has yet to offload his stash. However, at spot rates, XRP is trading at $0.47—a price level showing that the investor is down roughly 30%–a near $150k in the red.

Although the loss is significant, it showcases the unpredictable nature of cryptocurrency assets, including XRP. However, the individual who shared the story on TikTok did not provide evidence to confirm the sale of the house for $500k.

Whether he sold or not reveals the extent to which some crypto project believers can go to purchase tokens.

The SEC-Ripple lawsuit

A legal battle is currently taking place in the United States between Ripple, a blockchain company that utilizes XRP in some of its solutions, and the Securities and Exchange Commission (SEC).

The SEC has accused Ripple of conducting illegal fundraising using XRP, an asset the agency says is an unregistered security.

The SEC and Ripple lawyers have filed motions for summary judgments, but the case has not yet been concluded. The judge’s ruling could impact XRP prices and influence the crypto industry regulation in the United States.

Read more: XRP is up 2% amid decentralization discussions