[Ichigoassassin47]

So what’s the big thing about the relatively new cryptocurrency, XRP?  I have some family over the break saying I should invest in it.  Personally, I don’t like investing in crypto as I don’t think they’re backed by anything as stocks are for the most part.  Instead, I view it moreover like meme stocks, like GameStop, where it can get pumped just as fast as it is dumped away.  Perhaps I’m too skeptical or too risk-averse but I can’t help but think people wanting to invest in XRP are looking to get rich quick.

[greatnuuds100]

ex-XRP holder here. I bought in mostly at 50¢ and have been itching to sell for the past year and finally did it during the most recent boom.

Personally, I wouldn't put your money in. XRP isn't actually a new coin at all, it's been around for a while. The reason it shot up so much recently, more than most cryptos, is because since 2021 they've been involved in a lawsuit with the SEC. This has majorly held the price down but because a new, pro-crypto SEC chair is expected to be sworn in under Trump, the weight of the lawsuit pushed XRP up alongside the general crypto boom.

This was the reason for the initial push at least. Once the hype starts going people just put their money in because they expect past performance to indicate future results. 

Your intuition that crypto is like meme stocks is correct, but in a lot of ways crypto is worse. Because crypto is only around a decade old, uses a lot of jargon, and is generally complicated the average person does not have a good understanding of it. Additionally crypto mixes tech and finance, which are already pretty speculative and are available to buy and sell on 0 commission platforms like Robinhood. As a result of this mix you get a lot of people who have no idea how an asset works or even what it is becoming totally convinced to buy it based of speculative hype (your family most likely falls into this category, sorry :/)

tldr: avoid crypto rn. Try to get your family to sell also. If you want to buy, I'd recommend waiting for the bubble to collapse then move and and hold till the next one.

 If you really want to go in now remember that financial bubbles are like unprotected sex: a lot of fun, pretty risky, and very stressful for those who don't pull out in time.

good luck