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Hello this is Matt on the moon Lambo Channel I've been in the xrp community And a holder of xrp for over 6 years and There's never been a shortage of Theories out there about price Suppression and I always enjoy seeing These nonsense theories get completely Shattered which is what's going to Happen right here in this latest Moon Lambo Hot Jam here's the headline from The crypto basic Ripple CTO rejects xrp Price suppression theories and just wait I mean it's just it's so obvious and and Like sharing you didn't have to be a Chart guy I'm not but just looking at Some very basic chart activity this is Provably the case uh then there's also This headline from the Crypt basic Ripple CEO confirms no IPO soon as Ripple to buy back $285 million of its Shares so we'll be talking about that Too now um I let you guys know at Towards the later part of of last year That uh Ripple would not be be having an IPO not anytime soon I still think it'll Happen at someone point in the future uh Not anytime soon that's what I was Saying probably I can't remember how Long ago it was probably 3 months ago Maybe I don't know something like that And the reason reason was pretty clear Even though xrp has legal Clarity There's there's enough legal uncertainty That um you couldn't drum up enough uh
Enough uh support for an IPO at this Particular juncture in time doesn't mean There's something fundamentally wrong With ripple but um that was actually Privately known among investors but the News leaked out from a ton of different Sources and somebody had actually handed It to me privately so I was aware of it Anyway but then once it came out I was Like yeah here it is there there you go Like attorney Jeremy Hogan highlighted It and there were others um and so no The IPO isn't happening and but just Just to be clear any was thinking there That means there's something wrong Fundamentally with ripple or xrp Specifically which is a core component Of Ripple's business model uh I still Firmly say the answer is no but we're Going to break some of this down uh Before going further I do want to be Clear I do 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 or right I'm just an Enthusiast who enjoys making YouTube Videos about crypto related topics but Just as a hobby and just for fun all Right into this first piece talking About alleged xrp price suppression Theories the Ripple CTO David Schwarz Has come up to debunk claims that Ripple Sold 237 Million xrp last December
Sharing xrp xlm and cardano charts to Dispel the circulating xrp price Suppression theories schwarz's latest Remarks came as a reply to the official X account of the good morning crypto Podcast citing data provided by Mr Huber And onchain sleuth the podcast X account Claimed that Ripple sold 237 million xrp In December 2023 now according to the disclosure This net sales figure represents three Times the amount that the The Firm Typically sells every month note that Ripple releases 1 billion xrp from Escrow each month but relocks 800 Million tokens retaining 200 million for Sales so let's go to the source content Now uh this is a good morning crypto's Official account on X and they wrote The Following Ripple is heavily dumping xrp In December 2023 Ripple's net sales of Xrp reached 237 million units equivalent To 142 million United States dollar this Is three times the average monthly sales Considering Ripple's historical patterns A significant buyback is anticipated Soon any extended period without net BuyBacks typically 8 to 10 weeks would Be caused for concern po per Mr Huber do You believe Ripple selling of xrp is Negatively affecting xrp prices and so Look there are number of ways that this Can be debunked and I always point out That historically anyway uh the the the
Percentage of global volume of of Ripple's sale of of their xrp is less Than half a percent that is not enough Uh to any any way detect what is Happening in terms of you can't the Sales occur you can't see the tiniest Nudge of the global price of xrp when They sell you cannot now of course if You're looking at uh the supply and That's because it just be clear that's Because it doesn't all hit at once it's Not like they're literally dumping Almost half of the supply of xrp on the Market at once that that would hit that Would that would hit so instead if you Have a it slowly seep in over a span of Decades yeah you don't notice it as time Passes slowly now of course I understand That if that didn't exist and it Couldn't be sold then the the Dynamics In terms of supply and demand would be Very different in the future which is to Say that um it does impact over a Prolonged period of time and I'm not Pretending like it doesn't I'm just Saying if your argument is that xrp Price isn't going higher because of this You are wrong you are absolutely wrong Because the inflation isn't any greater If you want to consider there an Inflation in terms of uh circulating Supply if you want to call it that um It's it's not far out of line from many Other coins so if you want what the
Problem is it's that there's not more Demand look at the demand side everybody Focuses so much on Supply what about the Demand side we need more more people and More adoption of the entire crypto asset Class that's going to be way more Important but here's what David Schwarz Had to say in response to this he said This is inaccurate not sure where you Are pulling this 3x data from but the Next xrp markets report coming out in a Few weeks will again include Ripple's Aggregate Holdings of xrp over the Quarter you'll see the changes in our Holdings from the beginning to the end Of the quarter due to transfers grants Sales Etc no surprises the numbers are Similar to previous quarters we have Always tried to be transparent about our Holdings even when that transparency has Been used against us yeah exactly and it Certainly was used against them by the SEC and other Market participants even Even Joe Luben specifically given Ripple CEO Brad Garling house crap about it Years ago although Brad Garling house in 2019 is that like a Yahoo event I think They hosted some I can't remember now It's been too many years but he zinged Back to to Joe Lop he's like okay well Where's uh how much uh how much eth does Does your organization have and of Course no crickets then Right anyway uh but but check this out
So then there was there was also this Post from David Schwarz uh because somebody wrote to him Xrp price is awful someone is dumping Heavily now again this narrative is not True I can appreciate if people are Being intellectually honest they're Pro Xrp and they're just trying to figure Out why and their brain goes to well Could it be this and they're asking the Question or they think that it might be The case I can appreciate you being in That position but let me inform you that Absolutely unquestionably unequivocally Is not true David Schwarz responded with Two charts including the one that's on Your screen right now David Schwarz wrote uh first chart is Both xrp and xlm over the past month Second chart is xrp and cardano over the Past month so for those of you looking At the screen you'll note that the price Of xrp is blue and xlm is the one that's In this orangish color these line up Pretty damn Samy don't they so if if the Reason xrp price is doing what it's Doing is because of Ripple then why is Xlm matching up now if you want to make An argument that xrp is like the big Brother of XM so XM is just going to Follow regardless what xrp does okay I'll play ball with that because I know It's nonsense let's go to the next chart Shared by David Schwarz now the blue
Chart is uh is still xrp and the Orangish one is no longer xlm the Orangest chart is now cardano and Wouldn't you know it it's the same damn Situation folks let's not over Complicate this the asset class moves in Tandem that's it that is It and then there's this is Ripple's Share buyback positive or negative and I Actually do like this article from Ledger Insight so check this out Yesterday Reuters reported that Ripple Labs is buying back $285 Million worth Of stock from early investors and Employees citing sources the tender Offer allows owners to sell up to 6% of Their stake valuing the company at 11.3 Billion Ripple confirmed the buyback to Reuters with CEO Brad garlinghouse Stating that Ripple has $1 billion in Cash $25 billion in crypto mostly Xrp he also confirmed there are no plans For an IPO anytime soon because of us Regulatory uncertainty and folks I know That might sound strange because uh xrp Itself does have legal Clarity but Ripple is still currently in a lawsuit With the SEC so even though we in the World of crypto as xrp holders we're Like yeah we already partied Everything's good this whole thing's Sewn up everything's good to go not Technically true for ripple just yet and So they did when they went on the road
Show last year when Ripple did uh they Didn't get the feedback that they were Hoping for very clearly uh because Otherwise they would have ipoed by now Frankly and there there were talks that Ripple would have ipoed by the end of 2023 but obviously that didn't come to Fruition because upon going on the road Show the response wasn't sufficiently Hot and it again it it doesn't mean that There's something wrong with ripple or Xrp it's just the circumstances are the Circumstances try again later basically That's pretty much it I still think it's Going to happen at some point anyway Peace continues it is exceptionally Unusual for a pre-ipo company to buy Back its own shares however Ripple isn't Just any company few startups hold the Quantity of assets that Ripple has we Haven't seen Ripple's balance sheet but Based on simple math a valuation of $ 11.3 billion seems to represent around 44% of Ripple's cash and crypto and one Would hope that Ripple's intellectual Property might be worth something but That calculation isn't entirely accurate Because valuing an esro stash of coins At the current market price is risky According to coin gecko the currently Circulating xrp Supply is 54.2 billion Tokens out of a maximum of 100 billion Tokens so Ripple has the balance of 45.8 Billion tokens valued at yesterday's
Price of 55 cents which is around $25.2 Billion using that figure is natural Because that's the available market Price however if Ripple released those Tokens onto the market today the price Would drop Significantly of course it won't do that Because it has its escrow process However an investor using the current Price to Value locked up tokens is FTX Risky particularly when it's such a Large proportion of the total issuance So an 11.3 billion dollar valuation Isn't really a 56% discount that said Buying back stock is generally a vote of Confidence by the company and its Leaders one could imagine CEO Garlinghouse saying we can buy you out At a big discount we'll take that the Fact that Ripple is in a position to do This is positive compared to its cash And xrp balance $285 million is not huge And so folks this is something that I've Said for the longest time when and I see So many people in our community um it Just I I know people operating good Faith just trying to come to reasonable Conclusions I'm not saying that this is Weird or bad or stupid it's just not Quite right but people assume that Ripple's you know the value of Ripple's Xrp Holdings on paper should be taken at Face value and that should be considered Part of the valuation of their company
But it never is and it shouldn't be and That's because you need to consider what The actual notional value is because Here's the deal in Reality they could Ripple could never Get that figure out of xrp if they tried To the the the global price of xrp it Would plummet now of course we know Ripple wouldn't do that it's not in Their interest and they've got xrp Locked up in escrow but that's why it's Not considered in the valuation of the Company it's because they could never Actually realize it if they want to go Sell it right now you know it's it's not The same like having $25 billion dollar On paper worth of worth of xrp is not The same as if you had like actual Assets like say you had $25,000 worth of You know Manufacturing uh I don't know machine Machinery basically our cars or Airplanes whatever it was it's not the Same thing because if you have those as Assets you can sell those off uh if There's a big enough market you know There there won't be a hit but if you Have half almost half the supply of xrp You can materially impact a market like That absolutely and so it's not Considered um you know that's why it's Not considered to be part of the actual Valuation of the company which is Perfectly
Reasonable and then there's also this One potential reason for investors Exiting is the long time that has passed Since Ripple's early funding rounds Between 2013 and 2016 some Venture funds Might simply want an exit to secure Their massive profits given an IPO was On the cards before the SEC litigation And no longer is it might be the Simplest explanation is the right one The list of external investors is at the Foot of this article okay so pause not That plausible it could be the case that People are just taking profit uh they They were going to hang in there longer Because they're expecting an IPO now the O IPO is not happening they're bailing Ship okay Possible but Realistically there I I think we all Understand like there's there's going to In all probability be an IPO it's not Like that's not going to happen it's It's not a question of if it's a Question of timing so would these Participants right now exit maybe I Don't maybe they're like okay it's Taking too long we we don't know what The timeline's going to be like we got To take some profits that can be put Over here maybe there's something else That they see as an opportunity so it's Plausible anyway peace continues other Investors May believe that Ripple will
Have to pay substantial penalties to the SEC recall that Ripple only prevailed in Part of its battle with the SEC judge Tores ruled in favor Ripple's favor that Anonymous xrp sales via exchanges to Retail investors were not sales of Securities however the judge found for The SEC regarding institutional sales Those institutional sales totaled $1.3 Billion when the case was filed and Another $3 billion subsequently if Ripple has $1 billion in cash it might Need to sell more xrp to pay damages Depending on the penalty figure Investors might think this will put Pressure on the value of xrp Alternatively over the long longer term Perhaps they believe the value of xrp Will be lower by the time Ripple sells Its xrp stash yeah and so if that's if That's what anybody's thinking the xrp Is just not going to be as desirable in The future they're entitled to think That but if you look at metrics that Actually matter even outside of regular Chart activity showing that xrp just Follows the broader crypto Market if you Care about utility you see that that is Increasing over time not decreasing so I Think that would be a bad analysis but It's certainly possible so anyway that's The gist of it here um that's that's the Latest on what's going on here again I Still think it's going to happen I'm not
Convinced it's going to materially Impact the price of xrp but as far as Ripple dumping harming the price of xrp These price suppression theories know They are complete and utter nonsense Garbage just to be Clear I'm a financial adviser you should Not be sell anything because of anything I say or right that would be a very very Very bad idea until next time to the Moon Lambo
