Prominent crypto influencer Sommi recently shared a compelling argument in favor of holding XRP rather than trading the asset, citing a $170K investment.
Sommi’s argument sheds light on the benefits of long-term XRP ownership versus the volatility of trading the asset. In a recent post on X, the influencer stated that he had employed an indicator many traders seek to leverage to outperform holding through trading.
He emphasized that this approach only proves beneficial if one can predict which altcoins will thrive in the coming years—a task that often hinges on a combination of skill and luck with a touch of gambling.
❤???
I used an indicator out there which people think will get them to outperform holding via trading.
It only benefits you, if you know which Altcoin will go Really Well in the next few years.
That's a skill itself, and luck + gambling.
XRP starting $100k capital worth… pic.twitter.com/fcOCEesidK
— yourfriendSOMMI ❤️??? (@yourfriendSOMMI) October 4, 2023
Sommi corroborated his argument with a compelling case. He presented an investment with an initial capital of $100,000 in XRP in late 2018. According to the influencer, this investment later surged to $170,000. The astounding 70% increase served as a testament to the allure of HODLing.
Referencing the indicator he mentioned earlier, Sommi noted that any market participant would have ended up with a 76% decline in the initial investment to a discouraging $24K within the same timeframe if they had traded with the system.
Dissecting the Data
Notably, a keen observation by The Crypto Basic shows that Sommi’s analysis hinged on an older XRP chart.
Calculating the number of tokens involved, the analysis suggests that the initial $100,000 investment procured 235,620 XRP.
These 235,620 tokens were worth $100,000 in November 2018, when XRP traded at $0.4244. The data from the chart further reveals that the $170,000 valuation was based on an XRP price of $0.7215 in March 2022. XRP increased by 70% from November 2018 to March 2022.
However, XRP currently trades at $0.5275 as of press time, marking a 26.8% decrease from its March 2022 price of $0.72150. Despite this decrease, the investment remains considerably profitable, with a current worth of over $124,000.
While the analysis presents a case favoring HODLing over daily trading, market participants should only employ strategies they are comfortable with. Notably, The Crypto Basic recently reported a similar case to Sommi’s example.
Specifically, Ripple CTO David Schwartz disclosed two days ago that his father purchased over 1 million XRP in 2013 at $0.005 per XRP. These tokens, worth $5,000 in 2013, would now be worth $527K. This represents a 10,450% ROI.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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