This Changes Everything for Ripple (XRP) | Crypto

hey big day for xrp and ripple for those

of you who aren't familiar with this xrp

Ripple is essentially well Ripple is a

company that runs the xrp token and this

is a digital token that the SEC came out

and said no this is not a security it

was a big win that was in July of 2023

it was a big win for ripple the company

uh and a lot of folks are now looking at

Ripple saying hey there's an opportunity

to invest in xrp because Ripple is

finally dis anchoring from the weight of

the regulators and lawsuits and maybe

there's an opportunity for the company

to really succeed going forward and so

what happened today was potentially a

step in that right direction today uh

Ripple announced that they're looking to

get into the stable coin industry with a

one toone backed stable coin much like

usdt or usdc which are of course your

number one and two stable coins those

are sitting at uh well presently tether

usdt sits at a market cap of

$16

billion xrp right now sits at about a

$33 billion market cap it's only up

about 2.6% on the day which is

surprising you would think it'd be up

more on this announcement specifically

because of how profitable stable coins

are but uh first remember tether has

this market cap of about $

106 billion usdc is second sitting at

about $33 billion uh and ripple now

wants to get in given that they've got

xrp as a number six token uh and they

think they can have essentially enough

attraction to their business model to

get some of those stable coin Assets Now

why would you want stable coins a one to

one back stable coins it's stable coin

it's very very simple so the premise of

a stable coin is that you could have

this onchain coin that's always

redeemable for a dollar of cash what do

you do in the meantime when people give

you cash for them to give you a stable

coin or for you to give them a stable

coin what you do is you deposit that

money into delicious money market funds

us treasuries or equivalent loans this

used to be risky because back in the day

tether in order to make a yield would

give loans to businesses and if those

loans went bad it could break the peg of

tether right kind of like Tera Luna had

its collapse following its stable coin

disaster but what's remarkable is tether

since has moved heavily to treasuries

and money markets without as much risk

of loss and they've actually reduced

their exposure to these sort of secured

corporate loans and instead they're

printing money off of treasuries in fact

they're printing so much money that by

the end of 2023 they had estimated

excess reserves of $5 billion so that's

kind of like if somebody deposits $100

with you and then you go make $5 of

Interest now you have $105 backing that

$100 you really did nothing other than

collect interest and profit and now you

have

105 roughly speaking that's how uh

tether now sits at about $5 billion in

excess reserves in Q4 alone so literally

in 3 months alone they made two .85

billion over at tether that's almost $1

billion per month think about that for a

moment on a 30-day time span that's

making about three uh what do we got

here uh that would be about if I go uh

$950 million divided by 30 that's about

31.6 million a day that's

making $1.3 million

an hour at tether simply for holding

people's dollars giving them a stable

coin and putting it on chain so it's a

really really good business it's a

business that's led by trust though the

reason people keep going back to tether

is because it's held its Peg it's held

its Peg better than

usdc usdc is pretty good as well but

both of these have done very very well

uh and there's always been fear over

tether mostly because we have been

relatively unaware of what they're

balance sheet consists of but recently

they don't really have to go into much

risk they could just sit in money

markets treasuries now that might change

again in the future when and if rates

come down over the longer term but this

makes a lot of sense for a company like

Ripple to get into the stable coin

Market just because they do have a

reputation and they do have a large fan

base and quite frankly even if they

could do one tenth the business of

tether they would still end up making

somewhere around $130,000 an hour

with one/ tenen of the business of

tether that's still really good even if

they had one 100th of the business of

tether they would still end up making

somewhere around

$133,000 per hour basically doing

nothing and I'm not trying to minimize

the work that goes into stable coins and

stuff but stable coins are great

business fantastic business and now that

some of the regulatory action uh is out

of the way xrp being ruled a digital

token not in and of itself a contract

transaction or scheme AKA not a security

there's been more enthusiasm for ripple

so great news for ripple let's give it

to Ripple I will say though I'm

surprised the stock is only up as little

as it is right now about again

2.6% possibly because some folks already

had saw this writing on the wall either

that or they don't think that Ripple

will actually be able to compete or

there's just a Detachment between the

business and the underlying xrp which I

think is less likely xrp has had you

know it's had its roller coaster days

here but uh personally I think you know

if I was a ripple fan this would be uh

this this is a great move and it's a

smart move so anyway that's my take

thanks so much for watching we'll see

you in the next one good luck and

goodbye oh wait before we go we should

do something else let's quickly just see

BTC price action because I think it's a

big deal uh for the market going forward

if you look at BTC price action on the

day chart we're really wedging out over

here and that sets up for either a

breakout or a

breakdown uh and right now I am happy to

say that we are breaking above that

trend line when you look at that trend

line I want you to pay attention how

this was made we're cut we're taking

that 26 date we're taking that 226 date

and we're taking that 320 date drawing a

continued line and we can see we've

we've touched this line a bit before

when we look at the 5- minute chart for

example with this large breakdown here

touch the line get below it get rejected

get rejected come down get rejected get

rejected uh try to break through fail

come back up try to break through reject

again so we've really had trouble and

we're just now finally breaking through

so it's actually really bullish for the

crypto industry as long as we stay above

that Trend now what could derail this

it's not going to take much a bad jobs

or CP reports going to be bad for risk

assets so buckle up I'll obviously be

covering these live on the meet Kevin

Market live channel so make sure to

check that out uh and um we'll see you

there for those reports thanks so much

for watching coupon code expires

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option right now a delicious zero day

we're up on let's hope that it keeps

printing some tendies today talk to you

soon thanks goodbye why not advertise

these things that you told us here I

feel like nobody else knows about this

we'll we'll try a little advertising and

see how it goes congratulations man you

have done so much people love you people

look up to you Kevin PA there financial

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