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Ripple: Capital firm calls XRP amazing investment – will the price rise to $1?

  • Risk management firm FRMO Corp. defends bullish case on XRP digital asset.
  • FRMO owns 62.84 Bitcoin (BTC), 34.98 Ethereum (ETH), 494, Litecoin (LTC), among others as part of an investment strategy.
  • Trader Michaël Van de Poppe sets a zone of $0.30 as a support zone and a new maximum if the price is consolidated near $0.43.

A new institutional risk management firm joins the wave of crypto adoption. FRMO Corp. has presented a document to its shareholders in which it defends the XRP digital asset and its operating model as an optimal investment opportunity.

According to the document, the company began to be interested in cryptocurrencies 6 years ago. At that time, they determined that their investment in U.S. Treasury Notes would yield very low returns. That situation has worsened for investors during 2020; not only have interest rates drop, but the U.S.’s debt has exceeded $26 trillion.

Therefore, the company determined that the crypto market presented the best opportunities. So they made an investment in the parent company of the digital asset management fund Grayscale, Digital Currency Group. As a result, FRMO Corp’s initial investment has shown high and unexpected performance, according to initial estimates.

The company owns a total of 62.84 Bitcoin (BTC), 34.89 Ethereum (ETH), 661.7 Ethereum Classic (ETC), 2 Zcash, 494 Litecoin (LTC), 1.1 Bitcoin Cash (BCH). In addition, they have a portion in XRP. FRMO believes that these may present a unique opportunity for the “deflationary system” of the digital asset. The document states the following:



XRP, itself, is one of the more intriguing currencies, as it is explicitly deflationary. There is a modest cost for transacting in XRP, which is not actually paid to any intermediary. The fee, which is a very small fraction of a unit of XRP and which is used to protect the network, is simply destroyed. Therefore, the number of XRP units is constantly decreasing.

FRMO notes that the XRPL on which the XRP operates is a “closed to outsiders” validation system, unlike public blockchains. Therefore, they estimate that it is a system with “significant return potential”. The risk management firm adds the following:

If the transaction velocity of XRP were to rise greatly, the number of currency units would decline greatly, thereby creating a substantial return even if the coin itself did not experience an increase in market capitalization. It would, however, experience an increase in value per unit.

New all-time high price for XRP, key levels

On the other hand, trader Michaël Van de Poppe has published an analysis of the current state of the market and possible scenarios for XRP. In an article for Cointelegraph, Van de Poppe attributes the bull market to institutional participation and for XRP an influence of the upcoming airdrop of the Flare Network’s Spark token.

In the short term, the trader believes that there are indicators that point to a correction. Therefore, he has set the price between $0.24 and $0.30 as an important support range, as the image below shows. However, it indicates that this is positive for an upward momentum to occur. To do so, he believes that investors should look at Bitcoin’s price performance. A fall or rise could mark the beginning of a rally for the market as a whole and a boost for XRP towards $1.

Ripple XRP

Source: https://twitter.com/CryptoMichNL/status/1335351318219804688/photo/1

As reported by CNF, analysts such as Credible Crypto are equally bullish for XRP. In its latest analyses, the trader has stated that the digital asset could reach $25 or $30 in the next bullish cycle. Credible Crypto agrees with Van de Poppe about the importance of the correlation between XRP price and Bitcoin price performance.

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