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Although this is Matt on the moon family Said Dan Channel fear has returned to Crypto markets but not so much for xrp Holders in fact out of the top 10 Cryptocurrencies at the time I'm Recording this anyway there are only two Cryptocurrencies that are not in the red And xrp is one of them and if you look Here on the right for those of you that Care to look at your screen uh this is Live coin watch you can see these are The weekly charts let me just scroll on Down you can see that almost all of These charts look exactly the same there Are some exceptions but almost all of Them look Very same zamzy and it's just a sea of Red almost everything in the red and That's because uh the crypto contagion From the FTX Fallout has spread now as I Said before even if we saw something Collapse and it resulted in prices Moving downwards uh and I predicted that It would happen to some degree I said Even if it happens it's probably going To be short-lived and it wouldn't be the End of the world so it is officially Here though and uh to to What entity did The FTX crypto contagion spread a bank In technically in Legacy Finance so it's In theory like outside the world of Crypto it just happens to be friendly to Crypto related companies or was until it Uh you know ceased to function but it's

A bank called silvergate and so I'm Going to give you all the specifics so You know exactly what's happening here But this is not something that scared me When stuff like when stuff like this Happens it's the same thing when when Luna collapsed then you saw the Contagion spread last year to you know Three years capital and Voyager Celsius All all that stuff you know the story so The fact that we're seeing an another Important entity you know in the world Of crypto collapse and then Market Participants get fearful and start Making emotional uh important financial Decisions you know it's just it's not Surprising I wouldn't categorize it as Wise but uh I and look I don't know Where the bottom is for this but we may Have already found it or maybe things go A little bit lower but eventually people Get back to base level and stop freaking Out and it's going to be okay so I'm Just going to continue to do what I Always do when it comes to investing Nothing after I make my purchase I sit Around and do nothing and I don't feel Sad sad scare scare feelings when crap Like this happens because it just Doesn't freaking matter but xrp Performing beautifully uh they're all Going to do it before going further Don't be clear I do not have a financial Background of any kind I am not offering

Financial advice and you definitely Should not buy or sell anything because Of anything I say are right I'm just an Enthusiast who enjoys making YouTube Videos about crypto related topics but Just as a hobby and just for fun okay so Uh despite the fact that crypto is in a Sea of red as I have Illustrated here Xrp is currently up 1.3 percent uh Hanging around at 39 cents you've got Bitcoin currently at 21 673 dollars Uh it's down 2.59 over the last 24 hours You got the market cap for the asset Class barely above one trillion dollars At this point Bitcoin dominance about Where it's been for most of the last 30 Days 41.51 and here's the crypto fear And greed index folks it's been a while I bet you missed it but we're back into Fear Oh yay good times because reasons So here you go 44 out of 100 on the Crypto fear and green index uh so we're At the higher end of the fear category I Don't know how long it's going to stay Here but Um you know the World's Gonna keep on Turning here you know the collapse that We saw with the Silver Gate bank which Again I'll get into in a minute uh it's Not going to cause crypto to cease to Exist it's not going to cause xrp to Cease to exist or pick your favorite Crypto it just it ain't gonna happen but

Look at this chart for those of you that Care to this is a 24-hour chart for xrp And it just pretty much moves sideways So when the news hit which I'll get into Uh it happened around just call it Roughly 5 p.m Central Standard Time That's my time zone that's why I said Central Standard Time and you so you can See here xrp wasn't that far off from Its 24-hour bottom at that point it Barely moved lower at all and then it Quickly moved to back to the upside it Did mostly move sideways and then Ultimately kind of inched up Um but this is markedly different than What we saw from almost every other Cryptocurrency in existence including The king crypto some like to call it the Least technologically advanced crypto on The planet Bitcoin here you can see at Close to 5 p.m uh Bitcoin just started Plummeting along with the rest of the Market and it eventually it about caught What about 10 minutes later it seemed to Find a bottom for the moment anyway Trended sideways mostly for uh what Another What's called eight hours something like That but it's been inch and downwards Ever since not looking very good or so Again compare that and I'll go flip back Just to these as soon as the xrp charts Flip back and forth between the two Really quick so you can see the change

There xrp does not care what happens to Bitcoin right now and so why might this Be happening well it's it's the same Thing I was talking about literally Yesterday what has changed over the last Roughly I guess at this point the time Recording it's now been what probably Over you know about 50 hours at this Point so what has changed in that time Frame well that's about when judge Torres uh issued her ruling on the Dollar challenges which is widely read By everybody that's paying attention as Very good for ripple and not so hot for The SEC might that be a notable reason That we're seeing this renewed Confidence and so that results in Headlines like this from the crypto Basic xrp only asset in green among top 10 crypto aims for 40 cents and by the Way I'll note that It ultimately did Reach above 40 since within the last 24 Hours it's just a little before below That right now uh then there was a Headline like this not feeling the need To go through the article for this video But uh this one was titled xrp price Surges as investors anticipate Settlement this month And yeah in terms of whether or not Their settlement in terms of the Conclusion of the case quite plausible I Think that there's an increased Potential for a jury trial instead in

Which case I'll talk more about that in A separate video I didn't want to get Into it right now all right I'll put out A video later today but yeah there's a Lot to say on that topic actually I Talked about it yesterday but there's More to add Um and so I put out this tweet just last Night The SEC drives the price of xrp not Ripple because like I'm tired of this Claim especially for the SEC ripples Driving the price of xrp and so in Tweeting out the SEC drives the price of Xrp not Ripple I'm only half kidding now Obviously in a general since yes of Course xrp will still continue to move In tandem with the rest of crypto Markets it's nice to see it briefly Decoupling here for a very brief moment In time uh where this is additional Confidence specifically amongst xrp Holders I'm happy to see that but that Doesn't mean that there's a some sort of Permanent Detachment from Bitcoin and The rest of the crypto market so it's Going to continue to do that really more So what I was getting at here is that It's probably the case Ripple's positive Announcements in business developments Have done about zero ever for for Positive price action for xrp the like Markets just don't respond all the Republicans say all the good stuff

That's happening they have been for a Decade and it the market doesn't respond It's actually continues to move in tan So but so what what outside of Bitcoin Has impacted the price of xrp the SEC Filing a lawsuit against Ripple it's not Ripple that's causing it it's the SEC That's causing the price action and here In this case it's their Um not so hot performance when it comes To judge torres's ruling that uh has Resulted I think and what we've seen for Much of the last you know call it Roughly two and a half days at this Point Don't mind seeing that one bit And also you know markets were already Having a hard time and actually I Pointed this out yesterday too a little Just briefly mention it based on what Fed share said you know in terms of uh Interest rate situation not looking so Hot so Market's already freaking out for Crypto and uh and equities actually Though and I showed you know what the S P 500 was doing I showed what was going On with the Dow Jones Industrial Average Very they're practically the same charts So that part was not unique to crypto But you have that and then the very next Day the FTX contagion spreads It's like so you're just getting Hammered that's why you're seeing the Prices going out it's not it has nothing

To do with long-term viability of Bitcoin or xrp and anything of the sort Has to do with irrational emotional Humans making important financial Decisions based off of how they feel in The moment Okay well here comes to have a bad time Doing that so let's go ahead and uh and Break this down here you have uh some Tweets from Caitlin Long the founder and CEO of custodia Bank and this is a Crypto Bank we're talking about custody Specifically for cryptocurrency rather a Sharp individual I always look forward To seeing what her perspective is when It comes to stuff having to do with Legal Because by the way she actually Warned the government including the SEC About FTX way before it was found to be A posi uh she had some she I don't know She publicly stated exactly what Evidence she had but she handed that Over and then the government just was Like just did nothing and then Ultimately the the Ponzi scheme was Exposed in November but um there is a United States Senator named Sherrod Brown who put out a note blaming uh Crypto for the fall of you know the Crypto's the enemy blah blah blah it's On your screen I don't feel the need to Read it crypto's the bad guy FTX causes You know contagion spreading All That Jazz

And yes the contagion is spreading but That's not because of crypto it's it Doesn't mean there's like a problem Inherent with crypto itself Yeah it has to do with the fact that Customer assets were stolen and gambled They were gambled with it was a Ponzi Scheme I don't care what the asset is That's always illegal that is always Illegal and also in this case there's Another culprit that Caitlyn long points Out and it is fractional Reserve banking So check this out here's what Caitlyn Long had to say Uh she tagged Senator Sherrod Brown and Wrote you're wrong that crypto triggered Silver Gates issue what did it was 13.3 Billion dollars in demand deposits that Depositors could withdraw in minutes but Only 1.4 billion dollars of cash had Silver uh silvergate Bank held 13.3 Billion dollars of cash the bank run Wouldn't have impaired its capital not a Crypto problem okay so that is certainly True and I'll also note that All of the bank's customers are getting 100 of their funds back so this is this Is not a situation where there was some Sort of gambling or policy this isn't a Celsius situation nothing like that Uh that's that's what I've read I read In the Wall Street Journal and well a Number of Articles and uh that is what Everybody is reporting within mainstream

Media and crypto media so I'll just take Take him at the word at this point uh so Still like what's with the disparity Well I do want to get into that here but First let me show you the screen grab That Caitlyn long shared and you can see Here uh non-interest varying demand Accounts 13.3 billion dollars so that's Deposits and what exactly was on hand Here uh 1.38 billion dollars so you can round up That's why you say 1.4 that's that that Was that's what was on cash and cash Equivalents not enough to get back so Then Caitlyn long wrote when a bank with Highly volatile deposits makes a levered Interest in 10-year bonds into a Fed Tightening cycle what happens when a Bank run hits is predictable liquidate Those bonds at a loss impairing the Bank's Capital it's an indictment Against fractional Reserve Banking and So fractional Reserve banking is the System in which would you deposit your Money into a bank uh you know the bank's Not just holding that for you and Providing these services and get all These brick and mortar locations out of The kindness of their heart they're Making money off your money because what They're doing is you're taking they're Taking your money and loaning it out to People who want more money but don't Have it that's how this works so new

Money could create it out of thin air It's called fractional Reserve Banking And Banks only have to to have a certain Percentage I don't remember what it is Off the top of my head but they only Have to have a certain percentage of Funds Um available on hand at any given moment So if there's a bank run and here there Was that can be a problem So uh and uh it's so so that's the other Call but fractional Reserve Banking and And so again but see that is not you That's not a crypto thing in fact you Know Caitlyn long she pointed out in a Separate tweet I can pull this up Um she actually told the FED uh you know As a representative of custodia bank Because she's the the founder and CEO Told the FED that uh you know the fund Should have to be backed 100 percent Hold the FED that the FED blocked the Idea I said no absolutely not because They're not going to change the system That's been entrenched for at this point Whatever it is 100-ish years plus or Minus I can't remember exactly But uh point being there's that and um And then it was all set off by FTX so Take a look at some of this article this Is from The Wall Street Journal covering The topic further uh the crypto meltdown Has claimed its first big casualty in The mainstream Financial system

Silvergate Capital Corp The California lender one of the crypto Market's top Banks said it would wind Down and return all deposits following a Run that forced it to sell off assets at A steep loss to cover billions of Dollars of withdrawals silvergate is Also considering how best to resolve Claims and preserve the residual value Of its assets the bank said in a news Release Wednesday Silvergate catered to companies in the Crypto business it helped institutional Investors move dollars in and out of Crypto trading platforms through its Silvergate exchange Network which it Stopped operating last week and by the Way again I want to be clear in case it Wasn't clear enough a little bit earlier In the video when this news dropped That is when Bitcoin started dropping So it's it there's nothing wrong nothing Wrong with Bitcoin other than the fact That it's technologically not as useful As we wish it were right without layer 2 Technology we'll see what happens there Uh But uh there's nothing wrong with xrp There's nothing wrong with anything else That well actually I don't even have to Say xrp in this case what am I talking About it went up What bank implodes and markets freak out Xrp go up okay well I don't mind that

But the point is the fact that there's a Lot of money lost here I mean well in Terms of market capitalization It's it just doesn't matter anyway peace Continues the bank's decline track to The unraveling of the broader crypto Industry which took a turn for the worst Following the collapse of FTX last year FTX and other companies controlled but By the crypto exchanges founder Sam Bacon freed accounted for about one Billion dollars of the bank's deposits Their collapse rattled the crypto market And sent silvergates stock down sharply The bank's implosion makes it one of the Few non-crypto companies to go out of Business as a result of the market route And so again right there that is why it Is the textbook definition of the Contagion spreading this is absolutely Contagion spreading here it's just the Degree to which it's scary currently not Very scary it's not good it's bad but It's not something that's you know I Personally going to be losing sleepover And peace continues a handful of banks Took a chance on crypto customers that Other lenders wouldn't touch but Silvergate went all in revamping its Business model to revolve around serving Crypto related businesses those Customers rushed to pull their deposits Out of silvergate following the FTX Collapse a subsequent regulatory

Crackdown in turn spooked Banks serving Crypto companies prompting them to back Away from the business Silvergates nearly 10-year crypto Experiment collapsed in a matter of Months and check this out folks because This Bank when they until they jumped Into Crypt if they were doing other Stuff In in real estate So it's just interesting that they made What seemed like a wise business Movement it should have been frankly uh Just helping an underserved uh industry Growing really really fast as a result Of of you know making this pivot you Know helping crypto businesses out it's Just funny to think had they not done That They'd still exist today probably they'd Still be way smaller than they Ultimately grew to but they'd still Exist here so again this I'm just it's just an observation I Don't really I'm not reading I'm not Saying they should or shouldn't have Done anything or if there's something That could have been done should have Been done a little bit differently here Except they'd still be in business and Still could have you know offered Services to crypto businesses it's just One of those things where it's like kind Of interesting and funny to think as

Awesome as that was for most of the last Decade man look at the end result here But it's not but again it's not specific There's nothing inherent about crypto That caused the problem it's humans Stealing from others gambling other People's assets and then Caitlin long Had pointed out the fractional Reserve Banking without fractional Reserve Banking then this would have been a Thing even So then that would obviously you know And if that were the case that if funds Had to be 100 backed that would change The economy in many different ways but It used to be more like we didn't always Have fractional Reserve banking here There are ways to have economies that Don't have fractional Reserve banking Um you know there would just have to be Like profit centers would have to be Elsewhere is the point but I guess that Would be outside the scope of this video So let me just go ahead read a little Further uh The Firm sold oh no here we Go in 2013 the bank was a commercial Real estate lender with a handful of Branches in the San Diego area in search Of deposits it opened up to crypto Companies the next year and its deposits Grew dramatically with nearly all of Them coming from the digital currency World the firms sold off most of its Traditional banking business to

Concentrate on crypto companies and Institutional investors providing Banking services to exchanges such as FTX coinbase and Kraken and check out Here because this is uh so it gets into The specifics of why this didn't or to The degree to which this didn't work out How this all unfolded Instead of trying instead I'm sorry Instead of tying its deposits up in Loans The bank kept almost all of them in cash Or easy to sell Securities that allowed It to meet withdrawals that ballooned Into the billions crypto related Deposits plunged 68 in the fourth Quarter to satisfy them silvergate Liquidated Securities it was holding on Its balance sheet the 700 718 million Dollars that lost selling the debt far Exceeded the bank's profit since at Least 2013. and so there you go that's Why they're out of business and This is just how banks operate this this Is this is just how it is it is heavily Regulated this is what the federal Government says to do this isn't Silvergate Bank doing something they Shouldn't do this is what happens with Banks this is how they operate The dim's the breaks man I don't know I've talked about for actual Reserve Banking before it's been it's been a hot Minute doesn't always come up but uh

There we are so you all let me know what You think but hey at least today pretty Good to be an xrp holder especially Compared to pretty much other any other Crypto on the planet in terms of recent Price action I'm not a financial advisor You should not buy yourself anything Because of anything I say or right that Would be a very very very bad idea until Next time to the Moon family sedan


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