Have XRP Holders Been Waiting for the Wrong Catalyst?

[00:00:00]The supply shock narrative might be a little bit delayed because Ripple has gone ahead and pretty much bailed out the institutions when it comes to their XRP being used as collateral.

[00:00:16]So there's some news recently that institutions are now permitted to use their OTC crypto, XRP, what have you.

[00:00:30]as collateral. So obviously it's in such demand that even though we hoped that institutions would be forced to buy from the market, in fact it means that they don't have to. Not until the OTC juice runs out. So until all the whales run out of OTC tokens to sell to institutions or until Ripple Prime or should I say Ripple themselves run out of escrow crypto escrow XRP to sell to these folks or if that escrow crypto has already been airmapped out to the likes of I don't know Black Rockck Fidelity JP Morgan.

[00:01:25]This might actually in fact rather than end the speculation of a possible supply shock that many people might have been thinking of right now, which I'm not going to lie, I was thinking of as well until it occurred to me that perhaps in fact the opposite might happen. So this might be a beautiful way for the OTC or airmacked crypto that was already sitting in escrow this whole time to be used as collateral. That way Ripple could custody it for them. I mean they're already custodying the escrow crypto. If you think about it, all that XRP escrow is already being custodied by Ripple directly. They have Ripple custody firms. They have Ripple Prime.

[00:02:20]Nothing has to change. All they have to do is then just use it as collateral in their further trades. It's kind of a beautiful system. What does this mean?

[00:02:32]We might see then that going forward after these institutions then use their crypto as collateral which kind of locks them up. I mean, they're already locked up in ESQL if that's their crypto anyway, but that's just a physical lock that they can't do anything with, but it would be programmatically locked up in a trade, which means they won't be able to use it at all. So, if they needed to fetch more XRP, they would have to go to the market. Or anybody else who doesn't own any of this XRP stuff, uh, has to go to the market to acquire more, which could do the opposite of what people might speculate, which would be that they'd have to not go to the market anymore since now they can use, you know, collateral OTC uh, crypto. I don't know if that makes any sense to you. Am I just waffling? If it sounds like waffling, it might be that you don't fully understand the tokconomics or the technicals of the token that you hold.

[00:03:36]If you look at my description section, I've got a guide that I wrote. It's like the ultimate cheat sheet.

[00:03:44]If you grab yourself one of that, if you grab yourself one, not financial advice, your own research, but you will be talking like me in no time using terms like OTC, AMN, ODL. These cheat sheets are a very linear, easy to understand explanation of each one of those terms. And I believe that if you have a thorough understanding of the terms, it makes just basically talk not even just talking about XRP but like you know understanding the news, understanding what happens when Ripple does this or does that or the SEC says this or that or you know whoever the jurisdiction that would be uh basically uh regulating crypto whatever they say anything do anything then it's obvious to you what they're talking about immediately because you have a full understanding of the technical aspect of XRP and I think a lot of people actually have noticed you know they know the basics but the technicals always goes over their heads or they just assume it means something and it doesn't mean what they think it means and this could be a bit of a problem. So check it out.

[00:05:02]There's a discount coupon as well that you can use that may run out as long as 100 people use it. Shout out to the people that have already got that. Um, again, much appreciated. I've put a minimal cost on it just because, um, you know, I don't want to spam scammers and stuff to get a hold of it and then pretend it's me and all that stuff. So, I find that a minimal a minimal charge tends to deter spammers and scammers and all these people. Talking of which, I've noticed there's been new scammers and it come new scammers showed up um and uh leaving comments under your comments. I would never contact you in that way. I would never ask you to call me on WhatsApp, contact me on WhatsApp or any of that nonsense. So if you see that, that's a scammer. Most of you are savvy anyway.

[00:06:07]So most of you know not to respond to those people. So the news may not be all bad. I know the original reaction that most people would have would be one of, I don't know, slight disappointment.

[00:06:18]That's actually, you know what, not necessarily. I think that people who maybe know a lot about the technical terms might be the ones that actually worry.

[00:06:33]So, it's a kind of a uh I don't know what the what expression to use a self-fulfilling prophecy or you know uh it's got plus and minus when it comes to how people respond. The more you know, the more you're worried, more you understand what things mean and the repercussions of things, the more you might respond positively or negatively.

[00:06:57]But yeah, I'm quite confident though that you know this token is the future of finance which is why institutions are accumulating albeit OTC and you know using it as collateral because they know that they're going to be holding for a long time which is why they're using it for collateral rather than you know leaving it liquid.

[00:07:27]and uh you know hoping to sell it or what have you. Also, apparently the Binance uh balance of XRP's gone down even further. Same with uh Coinbase.

[00:07:43]So, the balance of uh little bush there. The balance has gone down to all-time lows.

[00:07:52]And what this means is a lot of people are taking a their coins out, both Wales and retail, and sending them to privately hosted wallets, which is usually a sign of hunkering down either because they think, you know, the price isn't going to moon anytime soon, uh, or they, you know, they're looking to hold longterm.

[00:08:18]Either way, it's a good sign because they could just if they thought that there was a a big problem ahead, they could dump instead. But rather than dumping, they're actually taking their coins off the exchanges and uh storing them privately somewhere, which is advisable anyway because as we've seen over the years and as we shall increasingly see in the coming future that not your man, what happened here?

[00:08:50]There's bushes everywhere. Used to be a nice clean path. It's now overgrown with shrubs and stuff.

[00:08:57]What was I going to say? Not your keys, not your crypto.

[00:09:03]As usual, this is not financial advice.

[00:09:05]Do your own diligent research. I'll see you in the next one.