Currently trading at a super-low price of just $0.65, crypto token XRP (CRYPTO: XRP) might appear to be wildly undervalued. After all, XRP boasts a cross-border payment network known as Ripple, as well as partnerships with some of the biggest names in the financial services industry. Moreover, it is trading at a steep 85% discount to its all-time-high of $3.84.

But dig a bit deeper, and there are plenty of obvious warning signs. If you are thinking about investing in XRP, there are several key risk factors you need to know.

First and foremost, there's the problem of XRP's regulatory woes. These date back to December 2020, when the SEC filed a lawsuit against Ripple Labs, the creator of the XRP crypto token. According to the SEC, XRP is a "security," and it is doing everything in its power to regulate it as such.

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Source Fool.com