TikTok Influencer Loses $150,000 After Risky XRP Investment

A TikTok influencer who reportedly mortgaged his home for $500,000 to invest in XRP, the native currency of the XRPL and coin used by Ripple, is reportedly losing money and unable to recoup his initial investment, according to data from May 28.

On February 24, 2022, the social media personality known as Money_talk_tok on TikTok’s video-sharing platform reportedly sold his home for $500,000 and informed his over 50,000 followers that he would invest in XRP.

Based on his market analysis at the time, he concluded that the cryptocurrency market was in extreme danger. He doubled down on the market and went against the prevailing trend.

The TikTok user concluded, after conducting a sentiment analysis, that the XRP market had reached its lowest point and had the potential to recover.

Consequently, he invested all their $500,000 in XRP, citing the maxim of being “greedy when others were fearful.”

At the time of his XRP investment, the coin was trading at $0.69, and the Fear & Greed Index, a popular sentiment indicator utilized by market participants, stood at “23.”

A Reddit post reveals that the TikTokker still possesses XRP and explains that he has not lost any money because he has not yet sold his stash.

However, at current spot rates, XRP is trading at $0.47, indicating a loss of approximately 30%, or close to $150,000.

Although the loss is substantial, it demonstrates the volatile nature of cryptocurrencies, including XRP. The individual who shared the story on TikTok did not, however, provide evidence to confirm that the house was sold for $500,000.

Whether he sold or not reveals how far some crypto project supporters will go to acquire tokens.

The Securities and Exchange Commission (SEC) and Ripple, a blockchain company that uses XRP in some of its solutions, are in a legal battle in the United States.

The SEC accuses Ripple of conducting illegal fundraising with XRP, a non-registered security, according to the agency.

The attorneys for the SEC and Ripple have filed motions for summary judgment, but the case is not yet resolved.

The judge’s decision could affect the price of XRP and influence the regulation of the cryptocurrency industry in the United States.