리플 성장에도 XRP는 뒷전? 보유자 비판에 CEO 직접 답변 — Transcript

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1. 0:00Hello. It's a beautiful morning. I think
2. 0:02I need to talk about Ripple today. Wait
3. 0:05, not Ripple. I'm going to separate the
4. 0:08terms today. I'd like to talk more about
5. 0:11XRP. The company's name is Ripple. The
6. 0:14coin's name is XRP. The XRP community
7. 0:17was quite noisy last week.
8. 0:19A community user posted a long message
9. 0:21on X. It's about the Ripple CEO.
10. 0:24The post directly targeted two people:
11. 0:27Brad Garlinghouse and David Schwartz,
12. 0:29who has led Ripple's technology for 13
13. 0:31years.
14. 0:32The content was as follows.
15. 0:34We endured the SEC lawsuit together for
16. 0:36four and a half years.
17. 0:37But Ripple is only growing its own
18. 0:40stablecoin, RLUSD, and institutional
19. 0:42business, leaving XRP on the back burner
20. 0:45. The fair price for XRP right now
21. 0:47should be between 15 and 20 dollars.
22. 0:50Since XRP is currently hovering around 1
23. 0:52dollar and 10 cents, they are talking
24. 0:54about a price over 10 times higher.
25. 0:56Now, because the topic of price came up
26. 0:58, I think some of you might see this
27. 1:00negatively. "Well, if you put it that
28. 1:02way, did Ethereum go up?""Did Solana go
29. 1:04up?"
30. 1:05You might think, "There are tons of
31. 1:07coins down 80-90%, it's not just Ripple
32. 1:09that dropped, so why are you making such
33. 1:11a fuss?"
34. 1:12But if you look at the position of the
35. 1:14Ripple holders right now. They have no
36. 1:15choice but to be angry. A while ago,
37. 1:17Ripple created a stablecoin called RLUSD
38. 1:20. Do you know what that coin is doing
39. 1:22right now? It's doing exactly what XRP
40. 1:24was doing. Many of you are long-term
41. 1:26holders of Ethereum as well, right? For
42. 1:29example, it's like Vitalik creating
43. 1:31another Ethereum. For institutions to
44. 1:34use. Let's say he created something like
45. 1:36'Ethereum 2'. Then, from the perspective
46. 1:39of Ethereum holders, you'd be furious. "
47. 1:41What? You're making the same thing again
48. 1:43?" And imagine if Ethereum's price
49. 1:45wasn't moving in that situation.
50. 1:47So, XRP holders aren't angry because of
51. 1:50the price.
52. 1:52They are furious because of this RLUSD.
53. 1:56And as this post began to spread,
54. 1:59Garlinghouse personally responded,
55. 2:01providing a clear direction from the
56. 2:03management and operation team.
57. 2:06RLUSD does not compete with XRP. It
58. 2:10competes with other stablecoins. And he
59. 2:13hopes that its utility will function on
60. 2:15the XRP Ledger. And it was two weeks ago
61. 2:18.
62. 2:18At Ripple's annual event, Swell, I had
63. 2:20actually prepared a video, but lately,
64. 2:22whenever I upload an XRP video, the
65. 2:24comments are so bad that I hadn't been
66. 2:26able to post it.
67. 2:27But at this annual event, they called
68. 2:30XRP the "North Star" of the company.
69. 2:32Meaning it's the star that guides the
70. 2:34direction. What a load of nonsense. Who
71. 2:36buys a star? People buy coins.
72. 2:39This is something that XRP must resolve
73. 2:42.
74. 2:43Now, let me show you some numbers first
75. 2:46. Ripple is a company, not a coin. How
76. 2:49did the company Ripple perform this year
77. 2:51? The CEO said it himself. He called it
78. 2:54the most successful year in history.
79. 2:57They expect the annual revenue run rate
80. 2:59to hit $ 900 million, or 1.2 trillion
81. 3:01won, by year-end.
82. 3:03And in March, they bought back their own
83. 3:05shares at a valuation of $ 50 billion,
84. 3:07or 66 trillion won.
85. 3:09Then, two weeks ago. They received final
86. 3:11approval for a trust bank charter from
87. 3:13the OCC.
88. 3:14Actually, looking back at the past month
89. 3:16. Ripple had the most positive news. But
90. 3:19the price didn't move. It actually went
91. 3:22down. There was so much positive news.
92. 3:24Other coins had no news at all because
93. 3:27of the election period. But Ripple kept
94. 3:29putting it out. Partnerships with this
95. 3:32institution, that one, and so on. So
96. 3:34what happened to the XRP price?
97. 3:37It has dropped 39%this year. And it's
98. 3:40down nearly 70%from its high last July.
99. 3:44If this continues, it's the worst year
100. 3:46since 2022 and a second consecutive loss
101. 3:49.
102. 3:49Even in the same bear market, it's
103. 3:51falling two to three times more than
104. 3:52Bitcoin. It's funny, right?
105. 3:54The company is having its best year ever
106. 3:57, but its namesake coin is having its
107. 3:59worst year in four.
108. 4:01This is our current reality. This month
109. 4:03. XRP was the top traded asset on Upbit
110. 4:06. It was number one again yesterday.
111. 4:08More than Bitcoin or Ethereum. In Korea
112. 4:12, XRP is a major pillar within the
113. 4:15altcoin market. So, why is this
114. 4:18happening? Why is Ripple growing while
115. 4:20XRP isn't rising?
116. 4:22Is there really no way to reconnect
117. 4:24these dots?
118. 4:26Today, we took a closer look at this
119. 4:27issue.
120. 4:28First, let's revisit what Garlinghouse
121. 4:30said. Let’s look into that a bit more.
122. 4:33RLUSD is a dollar stablecoin issued by
123. 4:36Ripple, pegged one-to-one to the dollar
124. 4:38.
125. 4:40The issuance is at $ 2.7 billion, about
126. 4:423.6 trillion won, and the inflow over
127. 4:44the last three months—don't be surprised
128. 4:47.
129. 4:47It is currently ranked first among
130. 4:49stablecoins. Looking at the last three
131. 4:50months alone. Because Ripple has landed
132. 4:53many major contracts recently.
133. 4:55Take the global remittance firm Canberra
134. 4:57, which handles $ 190 billion annually.
135. 4:59Payments handled by this firm start and
136. 5:02end in fiat, using the stablecoin for
137. 5:05settlement in between; the news is all
138. 5:08good, but there’s no mention of XRP.
139. 5:12And it was at the end of this May.
140. 5:14JP Morgan, Mastercard, Ondo, and Ripple
141. 5:16conducted a payment experiment together
142. 5:18, and they used the XRP Ledger then as
143. 5:21well.
144. 5:21However, the cash settlement was done
145. 5:23through the JP Morgan payment network.
146. 5:25There was no mention of the XRP coin in
147. 5:27this announcement either.
148. 5:29So, what was XRP originally intended for
149. 5:31?
150. 5:32Originally, XRP was a coin used as a
151. 5:34bridge for international remittances, or
152. 5:36cross-border transactions.
153. 5:38You convert Korean currency to XRP, send
154. 5:40it, and in the receiving country, it’s
155. 5:42converted back into their local currency
156. 5:43. But who is performing that role now?
157. 5:46Stablecoins are moving in. I said this a
158. 5:48while ago. That XRP is at least
159. 5:51maintaining its price to this extent
160. 5:53because it created RLUSD.
161. 5:56If XRP hadn’t taken any action, its
162. 5:58price would have dropped further because
163. 6:00it would be competing directly with
164. 6:02stablecoins.
165. 6:03Actually, my opinion on this remains
166. 6:05unchanged. I happen to think they
167. 6:07handled it well. Regardless of
168. 6:09everything. However, it should have been
169. 6:11linked to XRP’s value.
170. 6:14But here’s something that really
171. 6:16frustrated the holders: what
172. 6:17Garlinghouse said in an interview early
173. 6:19this year.
174. 6:21He said, "I am not an XRP maximalist.""
175. 6:24In some cases, stablecoins provide a
176. 6:27better solution."
177. 6:29He wasn’t exactly taking XRP’s side; he
178. 6:32made a statement that leaned toward
179. 6:34RLUSD. So, to talk a bit about
180. 6:36Garlinghouse, what did he say at Swell?
181. 6:40Last year, Ripple’s services supported $
182. 6:4216 trillion in transactions, but 99.9%
183. 6:44of that still runs on traditional
184. 6:45financial networks.
185. 6:47But he hopes that by next year, 1%to 3%
186. 6:50of that will move to blockchain payment
187. 6:53networks. Just that 1%alone is
188. 6:55significant. It amounts to over 200
189. 6:57trillion won. I mean, not all of that
190. 6:58money will come to XRP, obviously.
191. 7:00But if the place where that money moves
192. 7:02is the XRP Ledger, then the transaction
193. 7:04fees circulating within it will become
194. 7:06incomparably larger than they are now.
195. 7:09But at the end of the day, that’s a
196. 7:10future story and sounds like wishful
197. 7:11thinking. Let me pick at that a little
198. 7:14more. He said he hopes for that 1%to 3%
199. 7:16to come over. And that he hopes it’s
200. 7:18used on the XRP Ledger. Right? Then what
201. 7:21about RLUSD now? Is it only running on
202. 7:24the XRP Ledger? No, it isn’t. 67%is on
203. 7:27Ethereum, and only 33%is on the XRP
204. 7:30Ledger.
205. 7:31Furthermore, you’d have to use that road
206. 7:34to pay the tolls in XRP tokens, right?
207. 7:37But the road being used most is still
208. 7:39Ethereum.
209. 7:40And honestly, I think the recent Binance
210. 7:42hacking issue has only made institutions
211. 7:44more likely to use stablecoins moving
212. 7:45forward.
213. 7:46Because stablecoins were able to freeze
214. 7:49funds very quickly during this incident
215. 7:52. But the reason Ripple became a
216. 7:54laughingstock here is that both RLUSD
217. 7:57and XRP were hacked at the time. On
218. 8:00Binance. But they froze the RLUSD. They
219. 8:03couldn't freeze the XRP. So, as
220. 8:06situations like this keep piling up,
221. 8:08complaints are bound to grow. Alright,
222. 8:10let's say I get it. Let's concede for a
223. 8:12moment and assume all RLUSD moves to the
224. 8:15XRP Ledger. Would that actually increase
225. 8:18the demand for XRP? Right now, on the
226. 8:21XRP Ledger. There are three places where
227. 8:24XRP is needed when using RLUSD. There's
228. 8:26the reserve held when creating an
229. 8:28account, which requires one XRP.
230. 8:30And when you register on the ledger to
231. 8:33receive RLUSD, another 0.2 XRP is tied
232. 8:36up.
233. 8:37Then there are the transaction fees that
234. 8:39are burned in small amounts each time.
235. 8:43If we calculate this in an extreme way,
236. 8:45the RLUSD currently on the XRP Ledger is
237. 8:47worth about 1.2 trillion won.
238. 8:50So, how many XRP do you think are tied
239. 8:52up to support that 1.2 trillion won?
240. 8:55At most, 20,000, which is about 30
241. 8:57million won.
242. 8:59And the amount burned as fees is about
243. 9:00200,000 per year, roughly 300 million
244. 9:02won.
245. 9:03So, even if over a trillion won is
246. 9:05circulating, only 30 million won worth
247. 9:08of XRP is tied up.
248. 9:10This means that just because RLUSD is
249. 9:12used on the XRP Ledger, it doesn't
250. 9:14guarantee a rise in XRP price.
251. 9:17Technically, this statement is correct.
252. 9:20Then, who gets the money that Ripple
253. 9:22earns? This is what's really important.
254. 9:25Ripple shareholders currently have three
255. 9:27ways to make money. First, the corporate
256. 9:29value rises.
257. 9:30The corporate value, which was 11.3
258. 9:32billion dollars early last year, jumped
259. 9:33to over 50 billion dollars this March,
260. 9:35more than quadruple. Second, the company
261. 9:37buys back its own shares. Share buybacks
262. 9:40announced since 2024 alone amount to
263. 9:42over 2.7 billion dollars, which is over
264. 9:443.6 trillion won. And third, business
265. 9:46profits.
266. 9:48When RLUSD is minted, interest generated
267. 9:50from the underlying reserves like
268. 9:52government bonds becomes Ripple's profit
269. 9:54.
270. 9:56Since the US stablecoin law prevents
271. 9:58issuers from paying interest to RLUSD
272. 10:00holders, the company takes it all.
273. 10:03Then, in this current situation, how do
274. 10:06XRP holders—the coin holders—make money
275. 10:09? Only through the price. There are no
276. 10:11dividends. There is no mechanism to
277. 10:12share in the company's profits either.
278. 10:14That is why Wall Street was the first to
279. 10:17realize this. Last November, Ripple
280. 10:19received an investment based on a
281. 10:21corporate value of 40 billion dollars,
282. 10:23which is about 660 billion won.
283. 10:25At that time, Wall Street giants like
284. 10:27Citadel Securities entered the scene,
285. 10:29and according to Bloomberg reports,
286. 10:30investors were granted the right to sell
287. 10:32their shares back to Ripple after three
288. 10:34to four years with a 10%annual return.
289. 10:37They were also given priority rights to
290. 10:38get their money back if the company were
291. 10:40to be sold or go bankrupt. And for some
292. 10:42of these investors, it is said they
293. 10:44judged that over 90%of Ripple's net
294. 10:47assets were XRP.
295. 10:48So, how do we interpret this? Wall
296. 10:51Street invested in a company with 90%of
297. 10:53its assets in XRP, but they didn't buy
298. 10:56XRP directly. They only bought equity in
299. 10:58the company. They even added protective
300. 10:59measures on top of that.
301. 11:01That’s why a man named Schwartz spoke
302. 11:03quite candidly, saying Ripple will act
303. 11:05in its own interest, and it should.
304. 11:07He told people not to expect the company
305. 11:09to act in their interest at the expense
306. 11:11of shareholder profits. It means they
307. 11:13care more about the interests of the
308. 11:14shareholders.
309. 11:15This is exactly the point where XRP
310. 11:18holders currently feel very disappointed
311. 11:20.
312. 11:21However, let's take a step back for a
313. 11:23moment here. Is this a problem unique to
314. 11:26Ripple?
315. 11:27No. Almost all the successful companies
316. 11:29in the crypto space are facing the same
317. 11:32issue.
318. 11:33Ondo Finance, the company that also
319. 11:34appeared in that JP Morgan experiment
320. 11:36earlier. It is a company that tokenizes
321. 11:38and sells real-world assets like U.S.
322. 11:40Treasury bonds. They are the
323. 11:42overwhelming leader in the RWA sector.
324. 11:45But the assets managed by this company,
325. 11:47which were about $ 700 million two years
326. 11:49ago, have now exceeded $ 4 billion.
327. 11:50That’s a six-fold increase. Six times.
328. 11:52So, they are number one in the tokenized
329. 11:54asset field. But what about the Ondo
330. 11:56coin? It has fallen 83%from its peak.
331. 11:59The company has grown six times in size
332. 12:00. But the coin has been slashed to
333. 12:02one-sixth of its value. The reason is
334. 12:04the same. Just like with Ripple. Ondo
335. 12:06coins only carry voting rights. There is
336. 12:08no mechanism to distribute fees, nor is
337. 12:10there a mechanism to buy back and burn
338. 12:12coins. The interest from Treasury bonds
339. 12:14goes to the product buyers, and the fees
340. 12:15go to the company.
341. 12:16Back in February of this year, in the
342. 12:18Ondo community, a proposal was made to
343. 12:19use part of the fees to buy back and
344. 12:20hold the coins—a buyback.
345. 12:22Even though this proposal was raised, it
346. 12:24still remains just a proposal stage.
347. 12:26This issue is not something that only
348. 12:30XRP has. Shall I give you one more
349. 12:32example? You know Canton, right?
350. 12:34Whenever any news comes out, Canton is
351. 12:35involved in everything. The DTCC-related
352. 12:37project from a while ago was also done
353. 12:38by Canton. The Canton Network, for
354. 12:40instance, is a blockchain used by Wall
355. 12:42Street banks. According to the company's
356. 12:45announcement, $ 350 billion in
357. 12:46short-term transactions daily. These are
358. 12:48now being settled on the Canton network
359. 12:50. This has grown six-fold in just one
360. 12:51year. Then did the Canton coin go up
361. 12:53six-fold? No, it didn't. It has been cut
362. 12:55in half from its peak.
363. 12:57Actually, when comparing Ondo to XRP,
364. 13:00Canton has had a lot of news lately.
365. 13:03And it's all high-value, substantial
366. 13:05news. So what is it? But here's the
367. 13:06funny thing, back in June of this year.
368. 13:08A major US venture capital firm. A16Z.
369. 13:11They invested $ 350 million together
370. 13:14with Citadel Securities. But where did
371. 13:17they invest? They invested in the
372. 13:19company's equity. They didn't even look
373. 13:20at the coin. It's the exact same picture
374. 13:22as Ripple. The top DeFi lending platform
375. 13:25right now, meaning the largest in scale
376. 13:27, is Aave. Aave had a similar incident
377. 13:29late last year.
378. 13:31The company behind it caused a
379. 13:33controversy by changing the fee revenue
380. 13:34from the app to go to a company address
381. 13:36instead of to token holders.
382. 13:39Of course, the amount wasn't huge, but
383. 13:41it showed that company equity and tokens
384. 13:43can compete for the same money.
385. 13:46So, looking at these cases side by side
386. 13:48, this issue is becoming more serious
387. 13:50for companies making money from actual
388. 13:52businesses, especially those partnering
389. 13:54with Wall Street to bring real-world
390. 13:55finance onto the blockchain.
391. 13:58So, I'm not saying we should just defend
392. 14:01Ripple. What Ripple is going through.
393. 14:04It’s not happening because Ripple did
394. 14:05something wrong. It’s not happening
395. 14:06because Ripple is trying to commit fraud
396. 14:08. Rather, it has become a problem that
397. 14:10arises whenever a crypto company enters
398. 14:13Wall Street.
399. 14:15That's why the recent news became so big
400. 14:17; it's not just Ripple holders who are
401. 14:20relating to this news.
402. 14:23As I mentioned earlier, there are many
403. 14:25Ondo holders and Canton holders out
404. 14:26there.
405. 14:27So this has now become a hot topic for
406. 14:29the entire industry. It's a matter of
407. 14:32the return of token value, whether the
408. 14:33money a company earns translates to the
409. 14:35tokens.
410. 14:36Regarding this, the US crypto media
411. 14:38outlet The Block stated that most tokens
412. 14:41have no legal right to profits.
413. 14:44There are many structures where profits
414. 14:45are kept by the company while tokens are
415. 14:46kept by the foundation. So it pointed
416. 14:48out that they are currently disconnected
417. 14:50from each other.
418. 14:51Then why did it end up like this? Is it
419. 14:54because all crypto companies are trying
420. 14:55to commit fraud? Are they just trying to
421. 14:57dump their coins and pretend they don't
422. 14:59know anything to scam people? No, that's
423. 15:00not it. The reason it turned out this
424. 15:03way. It’s because of Ripple.
425. 15:05You're probably wondering what that's
426. 15:06supposed to mean, right?
427. 15:07To be precise, it's not because of
428. 15:08Ripple itself, but the SEC was filing
429. 15:10lawsuits excessively during the last
430. 15:11Biden administration.
431. 15:13Ripple was the one that got hit the
432. 15:14hardest by those lawsuits. And the
433. 15:16verdict for the Ripple lawsuit came out
434. 15:18in July 2023.
435. 15:20The court ruled that even for the same
436. 15:22XRP, the judgment differs depending on
437. 15:24the method of sale.
438. 15:26Ripple selling directly to institutions
439. 15:28was a securities transaction. But
440. 15:29selling anonymously on exchanges was not
441. 15:32.
442. 15:32Those who bought on an exchange didn't
443. 15:34even know they were buying from Ripple,
444. 15:36so there's no basis to expect profits
445. 15:38from Ripple's efforts.
446. 15:40Therefore, it's not a security. That's
447. 15:41how it followed. The logic. So, how is
448. 15:43this interpreted? To avoid the "
449. 15:45security" label, a coin must distance
450. 15:48itself from the company's efforts. That
451. 15:50is how the industry understood it. So,
452. 15:52the entire industry realized they had to
453. 15:54separate things if they didn't want to
454. 15:55be considered securities. They designed
455. 15:57things according to that logic.
456. 16:00The result is that the companies we see
457. 16:02now, the successful ones, have become
458. 16:04somewhat detached from their coins.
459. 16:07Of course, the crypto side was very
460. 16:09happy on the day that ruling came out.
461. 16:11Actually, Ripple holders were very happy
462. 16:14too, and coins like Solana and Cardano,
463. 16:16which the SEC had claimed were
464. 16:18securities, all jumped over 20%in a
465. 16:21single day.
466. 16:23So when I look at Ripple, before I start
467. 16:24my YouTube content, let me digress for a
468. 16:26moment.
469. 16:27Ripple has been exhausted too much on
470. 16:29YouTube. Throughout the last bear market
471. 16:32, there were so many videos about Ripple
472. 16:34.
473. 16:36There were many sensational thumbnails
474. 16:37claiming things like "buy a few Ripples
475. 16:39and your retirement is guaranteed," but
476. 16:41when you actually watched them, the
477. 16:43content often wasn't like that at all.
478. 16:46That's one of the reasons I'm reluctant
479. 16:48to appear on other channels. Anyway,
480. 16:50because Ripple's image has been drained
481. 16:53that way, it's currently undervalued
482. 16:55compared to its actual worth. It seems
483. 16:58to have become a target of ridicule.
484. 17:00But from the perspective of Ripple
485. 17:02holders, they were hit hardest by the
486. 17:04lawsuit during the COVID bull market.
487. 17:06XRP, which is Ripple now. Ripple didn't
488. 17:09rise at all. During the COVID bull
489. 17:11market, other coins rose 30-fold. At
490. 17:13that time, Chainlink rose 30-fold,
491. 17:14Polkadot rose 30-fold; they all rose 30
492. 17:16-fold. Other alts went up, but Ripple
493. 17:18didn't. These are the people who endured
494. 17:19that period. Waiting for the lawsuit to
495. 17:22be resolved, and Ripple needs to
496. 17:24acknowledge that.
497. 17:26Ultimately, because Ripple won that
498. 17:29lawsuit, other altcoins were able to
499. 17:31survive, and although the decoupling
500. 17:33structure created back then causes
501. 17:35issues with coin value today, Ripple is
502. 17:38the only company that can solve this as
503. 17:41well.
504. 17:42Let's talk about that.
505. 17:43So, what kind of company is Ripple? It
506. 17:46has been around since 2012. So it is one
507. 17:48of the oldest companies in the crypto
508. 17:50scene. It holds the position of the
509. 17:52eldest brother in the generation after
510. 17:53Bitcoin.
511. 17:54It was the first to clash with
512. 17:56regulations, fought the longest, and
513. 17:58eventually paved the way.
514. 18:00That is why I see this situation this
515. 18:01way. The challenge of decoupling coin
516. 18:04value from company value is a puzzle
517. 18:06that neither Ondo nor Centrifuge has
518. 18:08solved yet.
519. 18:09If so, who is the most likely to solve
520. 18:10this puzzle first? It is Ripple. And
521. 18:13there is a reason for that. First,
522. 18:15Ripple is the largest whale of XRP.
523. 18:18Ripple currently holds 36.8 billion XRP
524. 18:21, including those in escrow.
525. 18:2336.8 billion coins. At current prices,
526. 18:26that is roughly 54 trillion won. I
527. 18:28mentioned earlier that Ripple's
528. 18:30corporate value is 66 trillion won,
529. 18:31right? Most of that is in XRP.
530. 18:34In the cases of Ondo or Centrifuge, even
531. 18:36if their coin prices drop, the company's
532. 18:38assets might not be significantly shaken
533. 18:40. But Ripple is different. If XRP were
534. 18:43to get cut in half from here, then
535. 18:45Ripple’s assets would also be cut in
536. 18:47half. That is why Garlinghouse always
537. 18:49says one thing. "Our company, Ripple, is
538. 18:52still the world’s largest holder of XRP
539. 18:54.""We have no choice but to care about
540. 18:57XRP." When you look at this situation,
541. 18:59his claims about being committed to it
542. 19:01become somewhat understandable.
543. 19:03Because they hold the most. So, what is
544. 19:06this linked to now? It is linked to an
545. 19:08IPO.
546. 19:10The buyback rights granted to Wall
547. 19:12Street investors become active around
548. 19:152028 to 2029.
549. 19:16If Ripple goes public before then, that
550. 19:18burden disappears. This creates pressure
551. 19:20leaning toward an IPO. But to go public
552. 19:23, what must happen first? They would
553. 19:26need to receive a high valuation, right
554. 19:27? For a company whose assets are mostly
555. 19:30XRP to get a high valuation, the price
556. 19:33of XRP must rise.
557. 19:35And what Garlinghouse mentioned back in
558. 19:37February of this year was this: A
559. 19:38one-trillion-dollar crypto company will
560. 19:40definitely emerge.
561. 19:42He was sharing his own dreams and hopes
562. 19:44.
563. 19:44But for a company whose assets are
564. 19:47mostly XRP to reach that
565. 19:48one-trillion-dollar level, it is
566. 19:50impossible without XRP. It cannot get
567. 19:52there.
568. 19:53And Ripple, as it stands now, has become
569. 19:55a company that can afford to sell less
570. 19:57XRP.
571. 19:58In 2020, Garlinghouse once admitted that
572. 20:00they could not turn a profit without
573. 20:02selling XRP.
574. 20:04But now, their annual revenue is $ 900
575. 20:06million, and when they need money, they
576. 20:08sell stock or have subsidiaries take on
577. 20:09debt to raise it.
578. 20:11They have found other sources of income
579. 20:12. Doesn't that reduce the pressure on
580. 20:15Ripple to sell back their XRP? In fact,
581. 20:18we can see signs of that happening. On
582. 20:20October 1st, looking at the ledger
583. 20:21records for the 1 billion coins released
584. 20:23from escrow, not a single one moved for
585. 20:2526 days. None of it went to any exchange
586. 20:27.
587. 20:28And as of the 1st of this month, 1
588. 20:29billion tokens were released again, and
589. 20:31while 700 million were locked back up,
590. 20:32there are no reports yet of 300 million
591. 20:34moving to exchanges.
592. 20:35So, the more money the company makes,
593. 20:37the more it can afford to keep the vault
594. 20:40closed. Of course, there are some who
595. 20:42are skeptical about this. With over 30
596. 20:44billion tokens left in the vault and 300
597. 20:46million released every month, won't they
598. 20:48eventually sell them all? That is
599. 20:50correct.
600. 20:51We can't say Ripple will never sell XRP
601. 20:54.
602. 20:54But if you look at the numbers, you can
603. 20:56see why this is important. In October
604. 20:58alone, the money flowing into XRP spot
605. 21:00ETFs amounted to about 15 million XRP.
606. 21:03However, the amount that can hit the
607. 21:05market each month is only 5%of the 300
608. 21:07million. So, as things stand, the
609. 21:09potential supply from the vault is much
610. 21:12larger than the current demand. Because
611. 21:14there isn't much demand. Conversely,
612. 21:16this means that if Ripple just releases
613. 21:18less supply, they could create even
614. 21:20stronger upward pressure on the price.
615. 21:24And for Ripple right now, reasons to
616. 21:26hold the XRP coin are beginning to
617. 21:28emerge.
618. 21:29As I've mentioned a few times, until the
619. 21:32first half of this year, I actually said
620. 21:35RLUSD wouldn't create much demand for
621. 21:37XRP.
622. 21:38If I recall, my channel's first video to
623. 21:41get a lot of views was about this very
624. 21:43topic.
625. 21:44At the time, the comments were filled
626. 21:46with people telling me I was a nobody,
627. 21:49to go study again, or asking what I even
628. 21:52knew, but things have changed since then
629. 21:54.
630. 21:55What has changed?
631. 21:57An upgrade that creates a reason to hold
632. 21:59XRP on the XRP Ledger is currently being
633. 22:01voted on.
634. 22:02It is the lending feature. It's a
635. 22:04structure where people pool their XRP
636. 22:06into a vault, the funds are used to
637. 22:07issue loans, and the depositors receive
638. 22:09interest. Once this opens, it will
639. 22:12create the first demand within the XRP
640. 22:15Ledger to deposit and earn yield on XRP
641. 22:17. It is still currently being voted on.
642. 22:20And do you know about Evernode, which
643. 22:21was listed a while ago? That is also a
644. 22:23place that offers lending.
645. 22:25They announced a strategy to increase
646. 22:27XRP per share by lending out XRP and
647. 22:29providing liquidity.
648. 22:31Of course, there haven't been any
649. 22:33results or official announcements yet.
650. 22:35But they are preparing this and that.
651. 22:38Was it two weeks ago? Robby Liu
652. 22:39announced that funds exchanged between
653. 22:42institutions would be settled via RLUSD
654. 22:45on the XRP Ledger, and then there's BNY
655. 22:47Mellon. They are the oldest bank in the
656. 22:50US, and they've added XRP to their
657. 22:52digital asset custody service. Also,
658. 22:55tokenized assets circulating on the XRP
659. 22:57Ledger have increased by about 29%over
660. 22:59the past month. So, in terms of
661. 23:01operations, they are actually doing well
662. 23:03.
663. 23:03And then there's the role of XRP as an
664. 23:05intermediary bridge, and things like
665. 23:07that.
666. 23:08Let's say you need to exchange treasury
667. 23:10tokens, stock tokens, and Euro
668. 23:11stablecoins with each other.
669. 23:13Then you need a bridge to use in between
670. 23:15. XRP can act as that bridge.
671. 23:19If the volume of those treasury tokens,
672. 23:22stock tokens, and Euro stablecoins I
673. 23:24mentioned earlier continues to grow, the
674. 23:27amount of XRP needed to bridge them will
675. 23:30also increase.
676. 23:32This is another way the utility of XRP
677. 23:34can grow. I understand the direction
678. 23:36they're heading, but it’s just too slow
679. 23:38.
680. 23:39For the holders, it’s agonizingly slow.
681. 23:42That’s why, regarding this recent
682. 23:43announcement—though calling it an
683. 23:44announcement might be a stretch. The
684. 23:45fact that it’s causing a stir in the
685. 23:47community is, in my view, a very
686. 23:49positive sign. Why is that? Just look at
687. 23:52the Uniswap case. When the community
688. 23:54exerts pressure, it actually forces
689. 23:56companies to change. Ripple itself did
690. 23:59exactly that. The reason Ripple created
691. 24:01an escrow in 2017 was due to community
692. 24:04anxiety that Ripple could dump a massive
693. 24:06amount of XRP at any time. That was a
694. 24:08huge issue back then. People kept saying
695. 24:10they would sell it all, so the company
696. 24:12locked it up themselves to appease the
697. 24:14anxious community. And the following
698. 24:16January, Ripple crossed the 3-dollar
699. 24:18mark for the first time.
700. 24:20Of course, you can't say it was solely
701. 24:22because of the escrow, but Ripple took
702. 24:24action on what the community wanted, and
703. 24:26there was a reaction to it.
704. 24:28The same thing happened with other coins
705. 24:30, too. Take Uniswap. The decentralized
706. 24:33exchange Uniswap, faced complaints for
707. 24:34years that only the company was taking
708. 24:36the fees. Those complaints continued for
709. 24:38years. Eventually, late last year, the
710. 24:40company stepped down from taking those
711. 24:41fees and started buying back and burning
712. 24:43tokens with the revenue generated by the
713. 24:45protocol. The approval rate for this was
714. 24:4799.9%. And the Ethereum Foundation is
715. 24:49another example. The Ethereum Foundation
716. 24:51also sold a lot of ETH. But they have an
717. 24:53amazing knack for selling at the highs.
718. 24:54I was truly envious of them. Sometimes,
719. 24:56at least.
720. 24:58After receiving massive backlash for
721. 24:59that, they changed their policy last
722. 25:01year to set rules on when and how much
723. 25:03to sell, and to disclose it every
724. 25:04quarter.
725. 25:05And now, Hyperliquid calculates all of
726. 25:07this from the start and uses most of its
727. 25:09fees to buy back and burn its own coin.
728. 25:12Their market cap has reached record
729. 25:14highs this year.
730. 25:16How much did they burn? They burned over
731. 25:181.7 trillion won in our currency.
732. 25:21It’s a case that shows how explosively
733. 25:23token burns can correlate to coin value
734. 25:26.
735. 25:26Uniswap is the same way. Whenever
736. 25:28positive news comes out, the Uniswap
737. 25:30coin always reacts. I watch the news and
738. 25:32the coin prices together all the time.
739. 25:34Of course, Uniswap is down a lot, too,
740. 25:36but other coins don't even react when
741. 25:37there's good news.
742. 25:39Investors have truly become cold-headed
743. 25:41. It's different from the past. Yeah,
744. 25:43good for the company. That's it. But for
745. 25:45companies with clear connection
746. 25:46structures, people think, "Oh really?""
747. 25:48Then this company's coin will go up,
748. 25:49right?" And so it rises. I know that,
749. 25:52and these coin companies can't possibly
750. 25:54be unaware of it. They will naturally
751. 25:56solve this homework. But looking at the
752. 25:59recent news, as the company grows, what
753. 26:01comes back to the holders?
754. 26:04Asking this question constantly is what
755. 26:07drives the company to move. And this
756. 26:09topic actually came up in the community
757. 26:11this time.
758. 26:12So, instead of Ripple trying to do
759. 26:14something entirely new, I’d suggest
760. 26:16looking at what was already there.
761. 26:19At the very least, they should set rules
762. 26:21on how much escrow supply to release,
763. 26:23and if they aren't going to use it, why
764. 26:25release so much?
765. 26:26I wish they would eliminate that anxiety
766. 26:28, and they said Ethereum did it that way
767. 26:31. And in the end, it's about burning. I
768. 26:33need to look into this burn issue a bit
769. 26:35more, but Uniswap originally wanted to
770. 26:38burn as well, but due to legal hurdles,
771. 26:40they set up a US entity to handle the
772. 26:43burn.
773. 26:44XRP probably has similar issues, but
774. 26:46since Uniswap already solved it once,
775. 26:48it's such a waste of news.
776. 26:50So much good news came out this time,
777. 26:52imagine how much it could have risen if
778. 26:54they just had a burn structure. There
779. 26:56have been about 20 pieces of news over
780. 26:58the last month.
781. 26:59Not a single one moved the price. Not
782. 27:00one. So from an investor's perspective,
783. 27:02it's driving them crazy. Investors are
784. 27:04watching Ripple news every single day.
785. 27:06They are. The news is good. But the coin
786. 27:08doesn't move. It’s maddening.
787. 27:10That's why, with Ripple and other cases
788. 27:12, I always say that linking it to token
789. 27:15value is the best approach. That would
790. 27:17be the absolute best. The best thing is
791. 27:19burning. If they can't manage a burn,
792. 27:21they should at least do a buyback. But
793. 27:22if they don't even do a buyback? That’s
794. 27:24where the dissatisfaction starts to
795. 27:25build up. Fundamentally, a coin must be
796. 27:28doing some work. It needs to have a use
797. 27:30case. Actually, there are some out there
798. 27:32that don't even have a use case. Some
799. 27:34coins do burning even when they have no
800. 27:36use case. But the price doesn't go up.
801. 27:38So, the order of priority has changed.
802. 27:39So, at the very least, when you pick a
803. 27:41coin or make an investment decision, you
804. 27:43should check: is it doing any work? You
805. 27:45must prioritize this first, and then
806. 27:47look at how the token's value is linked
807. 27:49. That should be the next step to
808. 27:51consider. Or, it might be most
809. 27:52comfortable for you to just buy
810. 27:53something that has everything sorted out
811. 27:54. But that really depends on your
812. 27:56investment judgment.
813. 27:58I believe that, eventually, all coins
814. 28:00will implement burning. Every single
815. 28:02coin. That season will come. I just
816. 28:04don't think now is that season.
817. 28:07Even though the market is bad right now
818. 28:08, one reason I still see hope is because
819. 28:10we've been through this many times.
820. 28:13If governments start to suppress coins,
821. 28:15then the game is over. That’s truly the
822. 28:17end of it. For example, in Korea, they
823. 28:20said they would shut down exchanges, and
824. 28:22everything was completely crushed.
825. 28:24When the SEC in the US started filing
826. 28:25lawsuits and threatening delistings, it
827. 28:27was also crushed.
828. 28:29When China shut down crypto, it was
829. 28:30crushed as well. What we should be
830. 28:32looking at to see if crypto will live or
831. 28:34die is how the countries are acting.
832. 28:37But looking at the current situation of
833. 28:39these countries, there are no moves to
834. 28:41suppress or eliminate crypto.
835. 28:43So, from a situational perspective, it’s
836. 28:44actually okay. In a way, this might be
837. 28:46the best environment since crypto first
838. 28:49started. Currently, the entire
839. 28:51prediction market is taking all the heat
840. 28:53.
841. 28:54So, in this situation, if coin
842. 28:56foundations can connect this to token
843. 28:59burns, perhaps they will find their true
844. 29:02value. They are doing a lot of work,
845. 29:04after all.
846. 29:05In my opinion, they will likely be the
847. 29:06ones to start it.
848. 29:07I think Ripple might be the one to set
849. 29:09it off. They are getting so much heat,
850. 29:11they have to do something. It's not just
851. 29:12one or two people complaining. That’s
852. 29:14why I used to use the word "promise" a
853. 29:15lot in the past. At first, I said, "
854. 29:17Keep the promises you made." But they
855. 29:19aren't keeping them now. They keep
856. 29:20meddling with the stock market. So these
857. 29:22days, I just think, "Please, know your
858. 29:25place."
859. 29:26Even if you say you’ll become a bank or
860. 29:28whatever, how can you beat traditional
861. 29:30finance?
862. 29:30The scale is completely different. You
863. 29:32should be growing your presence within
864. 29:33the crypto space. It's time to know your
865. 29:35place, and instead of caring about
866. 29:36stocks, care about your coin. Since most
867. 29:38of their assets are in XRP anyway, they
868. 29:41will likely take care of it. So I’m
869. 29:43trying to stay positive, and I know many
870. 29:44of you are feeling very frustrated. And
871. 29:47I really don’t think this is just
872. 29:49Ripple's problem. There are so many
873. 29:51others.
874. 29:51That’s why I brought up a topic related
875. 29:53to Ripple today.
876. 29:55I uploaded a video about Pyth Network
877. 29:58last time.
878. 29:59I got comments asking why I was posting
879. 30:01about a "shitcoin," but I will continue
880. 30:03to make videos about all coins that burn
881. 30:05their supply.
882. 30:07Whether they are big or small, they at
883. 30:08least know their place.
884. 30:10Because they are doing what they are
885. 30:11supposed to do. It’s not about telling
886. 30:13you to buy that coin, but I wish other
887. 30:15coins would also know their place better
888. 30:17. Instead of just coming to Korea and
889. 30:18doing useless interviews. People aren't
890. 30:20going to buy it anyway. It’s not going
891. 30:22anywhere. Investors these days are
892. 30:23incredibly smart. That’s all for the
893. 30:25topics I prepared today. Thank you for
894. 30:27joining me again today. This has been
895. 30:29Saebyeok On. Thank you.