The XRP-led Altcoin FUD: Threats or Opportunities For Investors?

To state the obvious, there has been an ongoing FUD (Fear, Uncertainty, and Doubt) in the overall altcoin market in the past few days. The whole drama started with the United States Securities and Exchange Commission (SEC) lawsuit against some of the top executives of Ripple, the US-based company that created and distributed the XRP token.

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Ripple is being sued for illegally participating in the sales of unregistered securities. If the multibillion dollar company is found guilty, it might have to face heavy fines and penalties.

Being one of the largest altcoins in the market, it is not surprising that the lawsuit against Ripple has cast a shadow of doubts and uncertainties over the entire altcoin market. Many fear that if SEC could come after Ripple, then it could come after some of the other coins in the near future.

Therefore, the price of XRP alongside several other altcoins is on the downward trend. The situation becomes even more horrible following the delisting of XRP on some lightweight US exchanges and the public announcement that Bitwise has liquated its entire XRP portfolio.

As I write, most of the altcoins are down, some breaking below their three months low. Of course, XRP is most affected as some whales begin to dump their stake in the market. For the holders of other altcoins, selling their stake for Bitcoin appears to be a finer option at the moment. Consequently, the Bitcoin dominance has reached an incredible high of 69% as at press time.

While this FUD is taking place, some investors are seeing opportunities to buy some of these incredibly undervalued altcoins, especially the ones that are fully decentralized and, therefore, are unlikely to be regarded as security tokens and come under the attack of SEC.

And I do think that the latter category of investors stand a higher chance of making big gains when there is a clear trend reversal in the few weeks ahead. Many will soon realize that this present FUD might even be a masterminded move by some crypto cabals to enter into the market at a giveaway entry point.

Do you see this present market trend as threats or opportunities? I will like to know what you think in the comment section.

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