Elon Musk Mentions XRP (XRP) for the First Time in a Public Setting, Igniting a Flurry of Activity

Musk's extraordinary ability to attract publicity was on full display — the event marked the second instance in which the tech mogul gave a $1 million check to a rally attendee who had signed his online petition.

Billionaire entrepreneur Elon Musk showed his support for Republican presidential candidate Donald Trump at a town hall meeting in Pittsburgh, Pennsylvania on Sunday, October 20.

Musk, who is known for his ability to generate buzz, once again handed a $1 million check to a rally attendee who had signed his online petition, marking the second time he has done so.

However, this event was particularly noteworthy as it had a palpable and immediate impact on financial markets — specifically, the crypto market. In a departure from his usual practice, Musk did not discuss his favored digital assets such as Bitcoin (BTC), Dogecoin (DOGE), or Ethereum (ETH) at the event. Instead, the billionaire made his first-ever public mention of XRP (XRP).

This single mention, which Musk explicitly stated was neither an endorsement nor the lack of one, was sufficient to drive a significant increase in both XRP activity and price.

Musk’s XRP mention sparks a surge in activity

The SEC’s ongoing legal proceeding with Ripple Labs has centered around XRP. The SEC filed an appeal on October 17 after an initial ruling that was largely favorable to Ripple Labs.

Moreover, the appeal revolves around the proceeding’s main subject: whether XRP constitutes a security. With the reintroduction of uncertainty, XRP has experienced relative stagnation, trading down by 9% year-to-date (YTD) at press time.

However, Musk’s mention of the token has led to a rapid 3.44% gain on the daily chart.

During the Q&A session of the event, an attendee asked the Tesla CEO about the possibility of financial institutions eventually adopting the XRP Ledger, especially considering the opposition voiced by the SEC’s current head, Gary Gensler.

BREAKING: ?? ELON MUSK ASKED ABOUT $XRP! Elon Musk was askedu2014 “Do you envision the XRP Ledger being incorporated into the financial institutions in the future” Elon responded by stating u2014 “This is definitely not an endorsement or lack of endorsement for XRP, but I do think… pic.twitter.com/Y4fndBjiFg

Musk responded that crypto, in general, is an ‘interesting and probably valuable bulwark against centralized control,’ clarifying that his statement was neither an endorsement nor a lack of endorsement for XRP.

However, markets appeared to interpret the statement as a strong, albeit indirect endorsement, and the token’s market capitalization rose from $30.6 billion to $31.6 billion in just 24 hours, according to the latest data obtained by Finbold from CoinMarketCap.

XRP’s outlook for the long term

While it remains to be seen whether Musk’s first public mention of the token will spark a major rally, several indicators suggest that the token will continue to trade sideways for the time being.

Although crypto experts like Alan Santana predict that the token’s escrow schedule will propel prices as high as $2 in 2025, the 1.2 billion XRP that entered circulation in October will likely hinder any strong upward movements in the short term.

The outcome of the SEC’s appeal will ultimately dictate long-term price action, and while the appeal has stifled any potential rally, traders and investors should note that the initial ruling was in favor of Ripple Labs, an outcome that could be repeated.

While Musk refrained from providing a direct response, Ripple is targeting financial institutions and recently announced the launch of a crypto custody storage solution designed for banks. These new developments are certainly positive for XRP, and a Trump victory in the November election could be a major catalyst for a breakout.

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