Average loss of XRP investors $ 6k
Investment adviser Timothy Peterson suggested that XRP investors had lost billions of dollars because of the fall over the week. Peterson, who worked at a consulting firm called Cane Island, explained that mobility in the market costs the average XRP investor $ 6 thousand.
XRP, which traded above $ 0.50 earlier in the week, fell below $ 0.30 after the SEC announced it would file a lawsuit against Ripple. Although the price of XRP rose again after that, this decline resulted in the loss of many cryptocurrency investors.
Average loss $ 6k
Timothy Peterson examined how the price of XRP charted after the SEC news. Peterson, who also assessed the market value of the popular cryptocurrency, said that both the coin investor and the American state were at a loss because of the news of this case.
Peterson observed that $ 10 billion came out of the XRP market after news of the lawsuit. That’s 5 times the SEC’s annual budget. Dividing that number so that it falls per investor, Peterson said that the average loss per capita for XRP investors is $ 6k. As these average whale wallets are also included, a normal individual investor is likely to be much lower than that.
The fact that investors have done so much damage means that the tax that the United States can receive from investors has also decreased. Peterson predicted this could result in a $ 1-2 billion tax loss. That would be enough to cover the SEC’s one-year budget, according to Peterson.
Why did XRP rise after it crashed?
Although the price of XRP fell below $ 0.30 during the week, it began to rise again after this decline. According to CoinGecko data, the price of the coin increased by 30% between December 24-25.
Jay Clayton, who led the Ripple case, stepped down as SEC chairman this week. After that, Elad Roisman became the head of the SEC. It is hoped that Roisman, who has been at the SEC since 2018, will pursue a more cryptocurrency-friendly policy on regulation compared to the previous administration. The rise in the price of XRP was explained by this shift in the SEC.