What Everyone Gets Wrong When Ripple Moves A BILLION XRP Every Month

[00:00:00]All right, I want to talk about Ripple's escrow account because this is a place of tension for a lot of people with not understanding exactly what happens when they release or unlock money from the escrow account. So, I want to make sense of it so you can understand exactly what's transpiring when this happens.

[00:00:16]So, at the beginning of this month, and usually it's at the beginning of every month, Ripple unlocked 1 billion XRP from escrow, about a billion dollars worth. And of course, a lot of people don't like when they unlock that number.

[00:00:28]They think that this is causing the price to stay suppressed. The part that a lot of people skip is that Ripple also sent 700 million of those coins straight back into escrow. So the amount that actually reached the open market was closer to 300 million, not a billion. So let's unravel what that means, okay? And let's unravel uh how that affects the market. I'm Camila Stevenson and around here we talk wealth. Go ahead and like the video, subscribe if you haven't already, and I want to say nothing I share is financial advice. It is only for educational and entertainment purposes. You have to do your own research. You have to manage your own expectations because your decisions belong to you and you alone. Now, let me explain what an escrow is first. It is a locked vault on a timer and it is one of the most deliberate supply designs in all of crypto. At the end of 2017, Ripple took a large share of the total XRP supply, roughly 55 billion coins, and locked them in a series of timelocked contracts on the ledger itself. One set scheduled to release each month years into the future. So, the purpose was public and it was simple. By tying its own hands, Ripple made a promise honestly that the market could verify that it could not just one day wake up one morning and sell its entire holding. Okay? Because these coins are not sitting in a wallet that it can freely spin. They are sitting behind dated locks that open on a schedule that anybody can see. I go on there and I look at it and see what's released. So the monthly rhythm is where it gets very precise. On the first of each month, one contract opens and releases up to a billion coins. And Ripple uses what it needs for its business, its partnerships, and it sales and then take the larger unused remainder and relocks it into a brand new contract dated to the very back of the line. Okay, so most of the coins cycle to the end of the queue to wait uh for their turn again years from now. All right, this is run every month for years and none of it requires trust because every release and every relock is recorded on the ledger and visible in real time. Now, I don't know how this is going to change, but I'm just letting you know what it's been so far. So, the supply schedule here is not a promise in a document. It is in fact on the public chain and you can see it yourself. The traditional world has a version of this which makes it easier to feel. When a company goes public, its founders and early investors are placed under a lockup, a period where they are contractually barred from selling their shares so that the market is not flooded the day that the stock lists. Escrow is the same idea. It's stricter, but it is more visible. A corporate lockup is a legal promise enforced by lawyers. uh XRP's escrow is enforced by the ledger with dates that you can read yourself and it releases gradually over years rather than expiring all at once. So the thing that serious allocators actually value here is not the supply is small.

[00:03:19]It is that it is predictable and provable. A large fund can model exactly how many coins can possibly you know enter circulation and without taking anybody's word for it. And predictability is one of those things that big capital prizes the most. Now, let me just and and I'll give you a picture of this, but let me just say, you know, a lot of times when they're moving crypto, it is going wallet to wallet. So, it's not going to affect the price unless it reaches the exchanges.

[00:03:44]And so, some people feel like the price is being held back and suppressed by that. And it's not because it's not hitting the exchanges. It's going from wallet to wallet. And if you ask me, they're positioning XRP to be in the hands of some serious players. We'll see as time unfolds what it really looks like. But I think um they are making a strategic move that maybe you and I don't always have insight on a 100% of everything that goes on. And of course there are NDAs involved. Hey investor, Camila here. Quick heads up for all you smart investors watching this. If you're serious about investing in a digital asset portfolio that brings you financial freedom and you like how I've been breaking down crypto, but want [music] more than just my YouTube content, I'm putting together something really cool. On July 22nd, I'll be running a free online [music] event called the Wealth Architecture Master Class, where you'll learn the exact road map I provide my high-end [music] clients with to structure their accounts and entities so their wealth is protected [music] and tax plays to stop handing most of your gains to the IRS. [music] I've never done a free live master class like this before and it's completely free, but we might have to limit spots to keep the quality high [music] and give everyone proper attention during the Q&A. So, if you want in, just [music] click the link below this video, grab your spot while you can. And now, back to the video. Now, picture a reservoir with one controlled floodgate. The gates open. A billion gallons pour out from behind the wall. And the headlines read, "A billion gallons unleashed." And most of the water flows right back into the holding pond behind a second gate. And only a fraction continues downstream into the river. If you measure the river by headline and then you're going to brace for a flood that's never really going to arrive. That's kind of how people are. The 300 million that actually moved this month is the downstream trickle. And against the roughly, you know, 59 billion XRP already circulating, it is a small predictable addition uh that the market has absorbed every single month for years. Okay? Even when XRP, you know, took off um in past times, right? So 300 million new coins is really nothing. And supply matters over time. This particular event is routine. It's already known and absorbed into the price long before the calendar page is going to turn. Okay? because every serious participant already knows that the first of the month is coming and roughly what it holds. A scary number on your screen and a meaningful change in supply are two different things. Okay.

[00:06:09]What would actually be news is the break in the pattern and and hopefully that'll be good news if they do break the pattern and it'll support um you know the supply demand dynamics. But if there was a break in in in pattern, meaning a release that's far larger than usual or a failure to relock the remainder or onchain data showing that these coins moving straight to the exchanges to be sold, then that would be different. But none of that has happened. And that's why I want you to understand these coins and not going straight to the exchanges to be sold. That would cause the price to come down. What they're doing does not touch the price. And I think people don't know that. So this is what they're doing. What an ordinary monthly cycle looks like. The same relock in the back of the queue that has run for years. And knowing the difference between the routine event and the genuine anomaly is what keeps you calm on a date that you should already have marked on your schedule. You already know it's the same pattern, right? So the discipline underneath the real lesson is that Ripple built a system that forces restraint on itself, keeping the bulk of its own supply locked on a public timer so it cannot act on impulse or emotion.

[00:07:14]That is structure. Protecting the long term from the short term, protecting the future from a decision made in a single bad moment. Uh we saw Michael Sailor sell some stuff, you know. So again, that type of decision is based off of emotion and the market and you know different things that's happening. This is systematic and it's certain and it's predictable. So there is a difference.

[00:07:37]The most value thing escrow does is not really about supply at all. It removes the temptation to sell everything at the wrong time by making it impossible.

[00:07:46]Okay. So when you understand this, you understand that your own holdings deserve the same discipline. I I like to have the same discipline. I have stuff already structured, already there so that I'm not moving, you know, by the emotions of the market and things that's happening. And to be honest, you can build the same way. You can take a lesson from that by choosing a structure that guards your long-term conviction against your short-term emotions. And the way I do this is that a portion of my own XRP sits inside of a Roth IRA through iTrust Capital. It locks the position into a structure where the growth stays tax-free and just as importantly, it keeps me from treating a 10-year position like a 10day trade because it is set up for the long horizon on purpose. Ripple put its supply behind a timer so that it could not act on impulse. I put a portion of mine behind a structure for the same reason. The details of that are in the description if you want to learn more.

[00:08:42]And there is a $100 funding bonus when you fund the account. And I suggest you make moves that are predictable that do uh help to protect you that uh allows for you to have enough time horizon so that you don't self-sabotage in your wealth accumulation zone. Okay? And that's what this is. It is a time to accumulate and to structure. All right?

[00:09:01]And so again, the link is in the description. And um let me just know honestly from your standpoint, you know, what your thoughts are about this escrow deal with Ripple. Does it bother you or do you feel a little safer understanding that it is predictable and it's not something that's super uncertain like whether Michael Sailor is going to sell a ton of Bitcoin and then we don't know what the market is going to do. Let me know your thoughts in the comments. Go ahead and like and subscribe if you haven't already and hike the video if you are feeling a bit more kind today.

[00:09:33]And uh just know that it genuinely helps the video when you like it. And so I would appreciate if if you made it to the end of this and you still haven't liked it, then go ahead and like the video. I just wanted to take a moment to kind of shine a little extra light on that. And I'll be back to share more with you about what's going on with the market and XRP and digital commodities.

[00:09:53]I'm here to educate you and to keep you a breast on everything that's happening so that you can obtain wealth through this wealth transfer. And as always, I want you to stay wise, stay wealthy, and I'll see you in the next video.