In a recent turn of events, the price of XRP experienced significant volatility following false reports that multi-trillion-dollar asset manager BlackRock had filed for an XRP-based spot exchange-traded fund (ETF). The fake news, initially shared by prominent crypto-friendly attorney John Deaton among others, underscored the cryptocurrency market’s susceptibility to misinformation.
However, John Deaton, known for his pro-crypto stance, took the opportunity to provide valuable advice to investors relying on his updates. Deaton emphasized that buying XRP solely based on positive news is not the most strategic approach. Instead, he offered insightful “financial advice” on when and how investors should consider entering or exiting the XRP market.
Because of the post below, I’m going to do something I’ve never done on this site: I’m going to give financial advice on how to profit off fomo.
You don’t buy any asset based on the new “news” causing people to fomo. That’s when you SELL the asset. Let’s use XRP as an example. https://t.co/iw1lKEdLrB
— John E Deaton (@JohnEDeaton1) November 18, 2023
Deaton suggested that investors should consider gaining exposure to XRP during periods of less hype or trending news. Reflecting on the fake BlackRock news cycle, he highlighted that the optimal time to buy XRP would have been before the news became public knowledge. Deaton reasoned that by the time news circulates on social media, the “easy money” has likely already been made by those with insider information. Thus, a more prudent strategy is for investors to purchase XRP when others are selling, ensuring a lower entry point.
The pro-crypto lawyer emphasized the importance of buying at a lower price to afford to sell when positive news triggers an XRP uptrend, causing others to experience FOMO (fear of missing out). He shared a case study, citing Ripple’s court victory in July, where XRP prices soared to $0.91 on a favourable ruling by Judge Analisa Torres. This example demonstrated the potential for significant gains for those who bought XRP earlier.
With Ripple’s legal battle against the U.S. Securities and Exchange Commission (SEC) likely approaching a climax, Deaton suggested that gaining exposure to XRP could be a prudent move if the final verdict favours the cryptocurrency. Regardless of specific events, Deaton endorsed the timeless investment strategy of buying during times of fear and selling during periods of greed, encouraging investors to apply this approach astutely to maximize returns with XRP. As the cryptocurrency landscape continues to evolve, Deaton’s insights provide a thoughtful perspective for investors navigating the dynamic market conditions.