thecryptobasic.com
Matthew Snider, CIO of Digital Wealth Partners, has issued a new warning after Trident Digital announced plans to create a $500 million XRP treasury.
Yesterday, The Crypto Basic reported that Trident intends to raise $500 million through the issuance of stocks and other financial instruments to establish an XRP reserve.
Trident’s XRP treasury initiative will commence in the second half of this year, pending regulatory approval. In the meantime, Trident, whose shares trade on Nasdaq, is discussing with other firms and investors the development of an appropriate strategy for its XRP reserve.
This includes identifying the best terms for acquiring XRP and setting up the reserve’s infrastructure. Following the announcement, Trident joined many public companies in adopting XRP as a reserve asset.
Publicly listed companies such as Webus International, Wellgistics Health, and VivoPower have also announced plans to create corporate treasuries for XRP.
XRP Supply Squeeze Incoming?
Amid growing interest in XRP among corporate entities, Snider warned that retail investors may soon find no XRP left to accumulate through dollar-cost averaging (DCA).
For context, DCA is a strategy that enables investors to purchase small amounts of an asset at regular intervals, typically to lower their average cost over time by buying when prices dip below their initial entry point.
With several corporations signaling their intent to buy and hold millions of dollars’ worth of XRP in reserves, the amount of XRP available for open market trading could steadily decline.
As a result, according to Snider, investors may soon find there is not much XRP left to accumulate via DCA. While this could potentially drive XRP’s price higher, retail investors might be squeezed out of the opportunity to adopt the coin.
Essentially, Snider’s message warns retail investors to seize the moment and grow their XRP portfolios before more big players lock up too much of the coin’s supply.
How Much XRP Is Ideal to Hold?
Most investors believe XRP has what it takes to transform the financial futures of patient holders. Notably, some experts, such as Linda P. Jones suggested that XRP could reward patient investors with generational wealth.
Amid this growing optimism, many community members have been asking about the minimum amount of XRP one should hold to significantly improve their financial status. According to Edo Farina, founder of Alpha Lions Academy, investors should aim to hold at least 1,000 XRP.
Meanwhile, other commentators like King Vale believe that 50,000 XRP should be the minimum to effectively position oneself for financial success. Given that this investment, worth over $100,000, is out of reach for many, some push back against such requirements. Critics like Xena reject arbitrary numbers, calling them ego-driven and lacking a rational foundation.