With the seemingly meteoric rise in Bitcoin and Ether prices in the past year, mainstream media and attention is once again trained on the crypto space. In response to this rally, investors have been piling into all sorts of altcoins, hoping to catch this wave.
Ripple (XRP) was one of the beneficiaries of this rally, with its price rising by over 250% at its peak in the last month. The positive price action didn’t last long though, with the Securities and Exchanges Commission (SEC) of the US suing Ripple Labs, the company behind XRP, and its founders this week for conducting a unregistered sale of securities. This prompted a cascade of delistings from major exchanges in the US.
After reading through the 71 page complaint filed by the SEC, I felt it was a good case study that illustrates the risks associated with crypto.
With increased interest in crypto among readers, I think its important for readers to understand these fundamental risks before diving in crypto....