Full transcript
0:00Okay, guys. New video.
0:02Why XRP must start at 45k 72k
0:11from day one.
0:13And it's going to be an administrative
0:15repricing and we're going to go
0:17and we're going to leave no doubts about
0:20it.
0:21So, let's start. Why 45k and 72k makes
0:26sense as a starting evaluation as I've
0:28been saying for a very long time.
0:31If a corridor must support trillions in
0:35settlement capacity, then each XRP must
0:39carry massive economic weight.
0:45Why it must start high and not climb
0:48gradually as many other people are
0:51saying.
0:52A gradual climb cannot satisfy corridor
0:56activation, R L U S D issuance,
0:59liability compression, institutional
1:02throughput, balance sheet neutrality.
1:06The system needs full density on day
1:09one, not market discovery.
1:13This is why repricing is administrative,
1:16is instant, it will be binary, either it
1:19is or it's not, and it's non-market
1:23related.
1:24Starting at 45,000
1:2672,000 is not moon math. It's the
1:30density required for the architecture to
1:33turn on.
1:36Why this will take the crypto scene by
1:38storm? Because the repricing event is a
1:41discontinuity, it's not a rally. Most of
1:44the people in crypto world expect
1:47charts, candles, uh linear moves, um
1:53cycles like the Bitcoin halving and no,
1:56they
1:58they're repricing is a systemic
2:01recalibration.
2:02This is a reset.
2:04A balance sheet event. It's a collateral
2:08density reset and you have to understand
2:10it in a collateral
2:12manner.
2:14It would look like XRP jump from $1 to
2:1745,000 or 72,000
2:20or whatever the system decides it needs
2:23to be
2:25reprice.
2:26It would be overnight without any
2:28trading activity causing it.
2:31Now, this will break every mental model
2:33in crypto. And people will say this is
2:36impossible. This violates market logic.
2:39This is manipulation. How can something
2:41be one day today and and and $100,000,
2:45$70,000
2:47uh
2:48today?
2:49But the answer is simple and you guys
2:51already know it because markets do not
2:54set collateral density.
2:57Institutions do. The system in this case
3:01is what will dictate the the repricing,
3:03the price, the real collateral the value
3:05density of XRP.
3:07And this is why crypto scene will be
3:09shocked and the casino will close
3:13forever this its doors because the event
3:17is outside the domain of trading and
3:19they can't comprehend something that
3:21they've been
3:22it it it doesn't understand what XRP
3:25really is, what collateral
3:27um
3:29uh collateralization really is.
3:33Even even even some of you
3:36we you guys waiting for XRP will be
3:39surprised.
3:41>> [sighs]
3:41>> XRP must be priced at institutional
3:45collateral density, not market
3:48speculation density. If you You go and
3:50watch those guys saying $10, $3, $3.50,
3:54by the end of the year $12, $20,
3:57$300.
4:00In other words,
4:02XRP cannot be $1. XRP cannot be 10, XRP
4:06cannot be $20, XRP cannot be $50, XRP
4:09cannot be $100, XRP cannot be $1,000.
4:14Those numbers can't support the
4:16architecture.
4:18Very expensive as Yoshitaka Akitao said,
4:21means tens of thousands.
4:25Exactly the 45,072
4:27range I am proposing.
4:30Proposing.
4:32So, why 45,072,000
4:35is the safe starting zone?
4:39Look what I say, safe starting zone.
4:42Not that is a cap ceiling. Not this will
4:45be frozen, not that it it needs
4:48elasticity and none of that.
4:50It's the starting point, all right?
4:54Repricing.
4:56Below 45,000, and if you guys been
4:59watching my videos, you know corridor
5:01throughput will fail, and R and USD
5:04cannot scale. Collateral pools will
5:07break, liability compression will become
5:09unstable. Above 72,000 to start is
5:13unnecessary, it's over
5:14collateralization.
5:16It's excessive density, it's not going
5:18to be needed
5:20in the beginning because it's a safe
5:23starting zone,
5:25and imbalance between corridors.
5:30Now, so the safe activation zone is
5:3345,072
5:35K, depending on corridor size and reuse
5:38multiplier.
5:40This is why the system will start there.
5:45Not 5 K, not 10 K, not 20K. Those
5:49numbers are too low for a tier one
5:51activation. And I'm going to explain in
5:53deep
5:54with example.
5:56The crypto market price is irrelevant.
6:00Institutional price will be set
6:02administratively. You like it or you or
6:05you don't like it, I don't care.
6:08Get it in your in your brains.
6:11This is why the repricing event will
6:14shock the crypto scene because it will
6:16violate every assumption
6:20people have about how price works.
6:25Why Kitao's comment implies a high
6:28starting price, not a climb, a gradual
6:32climb.
6:33Kitao knows that corridors cannot open
6:36at low prices. RLUSD cannot scale at low
6:40prices. Liability compressions cannot
6:43run at low prices. Balance sheet
6:45neutrality cannot be maintained at low
6:47prices.
6:49RLUSD is what will give liquidity and if
6:52we need liquidity, we cannot get
6:55liquidity at a low
6:57um price
6:58XRP.
7:00Therefore, XRP must start at full
7:03density. What did What did I say? It
7:05must start at full density.
7:09Not at $1, not at $3, not at $5, not at
7:1330, 50,
7:15100, 1,000, 5,000, 10,000.
7:22Not climb to it, not discover it by the
7:25markets, and not rally into it in a
7:28linear um gradual uh event. Uh the
7:32markets are irrelevant for
7:35collateralization. So,
7:37why corridors will arrive all at once
7:39and why is needed at a very high density
7:43and we going to go very deep.
7:45Corridors must all, all right, at once
7:50because they cannot function at low
7:52density.
7:54And activating them one by one will
7:57collapse the system through liquidity
7:59fragmentation
8:02imbalances and regulatory failure.
8:05A very high XRP density is then required
8:10because each corridor depends on the
8:13same collateral pool architecture.
8:17And that architecture cannot operate
8:20unless XRP is already priced at
8:23institutional settlement density.
8:27They're interconnected. You cannot have
8:30one corridor with um
8:33one price too low, too high, not one one
8:38opening, then everybody will try to use
8:41that corridor and then it's going to
8:43have bottlenecks.
8:45So, no. All the corridors must arrive at
8:47once, all at the same. They're going to
8:49have each collateral pools.
8:51Um
8:53in the beginning, they each will have
8:54like a minimum amount of
8:57XRP. I'm assuming it's going to be like
9:00that.
9:01>> [sighs]
9:03>> Um
9:04SBI, Santander
9:07and Standard Chartered in UK.
9:09Let me give you an example, all right?
9:11Imagine this, three tier one corridors.
9:14SBI Japan
9:16to Philippines, Santander Europe to
9:19Latin America and Standard Chartered UK
9:21to uh United Arab Emirates.
9:25Each corridor requires deep liquidity
9:27tight spreads, predictable settlement,
9:30collateral pools with sufficient
9:32density, right? Imagine all that are
9:34like Vanguard, SBI, they move they have
9:37all everything. They can do everything.
9:39They need They need so much
9:41liquidity that it's crazy.
9:46What happens if only SBI activates first
9:50at low density? Assume XRP is still $1
9:53or $100.
9:56SBI tries to activate its corridor.
9:58Immediate failure will occur.
10:02Their pool can only hold, let's say, 20
10:05million 30 million XRP.
10:07Right?
10:08Then then they they're going to have a
10:11small amount.
10:13At $1, that's 20 million 30 million
10:17capacity.
10:18Right?
10:19This is This is an example, right? I
10:21don't know how how what their
10:23collateral pool
10:25uh their pool will be. But I'm I'm I'm
10:27giving you an example.
10:29So, at $1 equals 30 million in capacity.
10:33At $100, that's 2 billion 3 billion
10:36capacity. But, SBI needs hundreds of
10:39billions in throughput.
10:42So, SBI corridor cannot settle, cannot
10:45compress liabilities, cannot maintain
10:47spreads, cannot maintain balance sheet
10:49neutrality, cannot have enough
10:51liquidity.
10:52Their corridor collapses on the first
10:54large flow.
10:57What happens if SBI activates at high
11:00density but Santander does not?
11:03Let's assume XRP is repriced at 45,000
11:06to
11:0672K.
11:08But, only SBI activates.
11:10Only one corridor, not all at not all at
11:13once.
11:14SBI corridor network works perfectly,
11:16but Santander corridor is still
11:17inactive.
11:19Immediate systemic imbalance occurs.
11:22SBI corridors have high density
11:25collateral pools.
11:26Santander corridors have zero density.
11:30Liquidity routing becomes asymmetric
11:32because there's only one side of the of
11:34the equation moving money. The other one
11:36is not.
11:37RLUSD flows becomes bottleneck.
11:41Why? Because
11:43there will be only one side moving RLUSD
11:45and and generate issuing
11:47uh RLUSD.
11:49Cross-jurisdiction
11:51settlement becomes impossible because
11:53there's not enough corridors open.
11:55CCPs clearing houses cannot clear
11:58multi-corridor flows.
12:01Auditors cannot sign off on balance
12:03sheet neutrality. And the system becomes
12:06unstable and practically useless.
12:10What will be the cross-border settlement
12:12with only one or two corridors
12:13available?
12:15This is why partial activation is
12:16impossible.
12:19What happens if SBI and Santander
12:21activate, but Santander charter doesn't?
12:25The standard, sorry. Standard Chartered,
12:27not Santander. Chartered Standard
12:29Chartered is in UK.
12:31Um now, two corridors are active.
12:34One is not.
12:36What happens? Immediate regulatory
12:38failure occurs.
12:40Multi-corridor settlement requires
12:42synchronized collateral density.
12:46Liability compression cycles requires
12:49all corridors online.
12:52RLUSD issuance requires full corridor
12:55mesh. They all need to be
12:56interconnected.
12:58Basel risk model requires uniform
13:01collateral density.
13:03And clearing houses require complete
13:05corridor availability. They have to
13:07check everything.
13:09So, if one tier one if uh tier one
13:12corridor is missing, compression cycles
13:14break. We use multipliers fail.
13:18Because there's a chain A A receives uh
13:21XRP to bank B, does the same to bank C,
13:24bank D, and so on. Remember that the
13:26example but if one uh corridor is
13:30missing you cannot have the the the
13:33reuse multiplier chain.
13:35So that's another example. RLU/USD
13:37cannot scale and the entire architecture
13:40stalls. The system cannot run with
13:43missing corridor. That's why the
13:44corridors and everything will start at
13:46once. And if you start like linear one
13:50at a time, slowly adoption, nothing
13:52works.
13:56Why all corridors must arrive at once?
13:59Because the architecture is
14:00interdependent. Collateral pools,
14:03liability compression, RLU issuance,
14:05routing, corridor mesh, reuse
14:07multipliers, important, settlement
14:11loops.
14:12You will not have uh cross-border
14:14settlements because there's only one
14:16corridor open.
14:18These components only work when all
14:20corridors are active simultaneously. If
14:23one corridor is missing, compression
14:25fails, routing fails, RLU/USD issuance
14:27fails,
14:28uh clearing houses fails, regulatory
14:30compliance fails.
14:32So,
14:34all corridors must activate at the same
14:37moment. Not gradually, not sequentially,
14:40not linearly, not one by one. This is
14:44why the repricing event
14:47is global, is not local.
14:52Am I clear?
14:53Do you understand now
14:56why everything will happen at once?
14:59If XRP is enterprise, the pools fail,
15:02the corridors fails, compression fails,
15:04RLU/USD cannot scale, settlement fails,
15:07the so
15:09high density is not optional. It's a
15:13mandate. It's a must for the system to
15:16turn on.
15:17So this is why 45,000, 72,000 makes
15:21sense as the starting density. Not the
15:24destination. Let me repeat it. Not the
15:26destination because I don't know how how
15:29long I have to repeat this and people
15:32come and say you cannot have uh fixed
15:35price.
15:37It's not a fixed price, guys. This is
15:40the starting point.
15:43So, give you the final example, the one
15:45that kills the debate.
15:47If XRP is $1, no corridor can activate.
15:50If If XRP is $100, no corridor can
15:53activate. If one XRP is 1,000, no
15:56corridor can activate. If XRP is 10,000,
15:59corridors can activate but fail due to
16:01insufficient density.
16:04If XRP is 45,000 to 72,000,
16:09all corridors activate, have enough
16:12liquidity, have enough leverage.
16:17And they all will activate
16:19simultaneously at the same
16:22uh time and the system now becomes
16:24stable, interconnected, and cross-border
16:27settlements and everything can happen at
16:29once with no issue whatsoever.
16:32This is why uh Yoshitaka Kitao said XRP
16:38must be very expensive.
16:40Corridors must arrive all at once.
16:43Repricing must be administrative.
16:46Repricing must be instant. Repricing
16:48must be high density. He said, "We're
16:51going to use it in everything we can."
16:53There is no other configuration that
16:56works. And I don't want to hear none of
16:57you saying,
16:59"But no, it's Canton." Canton doesn't
17:02compete with XRP.
17:05How many times I have
17:09to make
17:10this statement?
17:13If anything, Canton competes with
17:17the likes of Quant.
17:20It's not a monetary rate.
17:22So, stop associating Canton with XRP
17:27because one idiot puts that Canton is
17:29going to kill XRP, you believe that it's
17:31the same.
17:3745,000, 72,000 is the safe activation
17:40zone because it is the only density
17:43where all tier one corridors can
17:45activate simultaneously without
17:47collapsing under global load. Below
17:5045,000, corridors fail. Above 72,000,
17:55corridors destabilize.
17:57Between
17:5845,000 and 72K, the system is balanced,
18:02compliant, and survivable.
18:04My assumption it should be around 72K,
18:08not 45K. 45K would be too
18:13limitless, very on the limit.
18:16But, they need enough RLU SD.
18:21So, 45,000 72 is not the ceiling. It's
18:24the activation zone. The system is not
18:28ending there, okay?
18:30The system will continue. The corridors
18:32will keep expanding. Uh
18:35PQ will keep increasing. So, the the
18:38price will need to increase.
18:42And this is [snorts] critical because it
18:44prevents every future misunderstanding
18:46about repricing. And a lot of you says,
18:48"You're repeating too much. You're
18:50repeating too much." But, what it
18:51happens that I repeat too much and you
18:53still don't get it.
18:55That's why I repeat
18:57that much.
19:01It's not
19:03the fixed price. It doesn't end at 72K,
19:07okay?
19:08And I'm going to continue repeating. If
19:09you don't like it, move somewhere else.
19:13The activation zone, 45,000, 72,000,
19:17comes from RLUSD
19:19throughput requirements as well.
19:22Every tier one corridor must support
19:25trillions of RLUSD and we've seen it in
19:28our last videos
19:30of settlement volume. Not millions, not
19:32billions, trillions.
19:34And this is the real constraint.
19:37XRP must be repriced high enough
19:41that its total market value can
19:43collateralize
19:45the RLUSD settlement throughput.
19:48And this is not an assumption, it's a
19:51hard requirement of the of the system.
19:55Why 45,000 72,000 is not the ceiling,
19:58it's only the starting point, because
19:59RLUSD throughput
20:02grows after activation. Now, pay
20:04attention, so you stop
20:07repeating it's a fixed price. Those
20:10Listen and pay attention. You going to
20:13pay any attention on this video is this.
20:17USD RLUSD will continue growing after
20:20activation. So, more corridors, more
20:23jurisdictions, more settlement volume,
20:26more RLUSD will be issued, more
20:29compression cycles, more institutional
20:32adoption
20:34will occur.
20:36As RLUSD scales, XRP then CT
20:40must increase to maintain the balance
20:44sheet, the compression stability, the
20:46corridor symmetry, and the settlement
20:49throughput.
20:51Settlement is key here.
20:53>> [sighs]
20:54>> So, 45,000 72K is the activation zone,
20:58not the ceiling. The ceiling is higher
21:02determined by future RLUSD throughput.
21:07More adoption leads to more settlement
21:09volume leads to more RUSD throughput.
21:13When more institutions will join,
21:16more payments will flow, more forex
21:18conversions will occur,
21:20more cross-border settlements happen,
21:23more clearinghouse compression cycles
21:25will run,
21:26more treasury operations route
21:29through RUSD.
21:32This increases what? The throughput.
21:35Not the circulating supply.
21:38Very important to understand.
21:40RUSD is minted and burned dynamically
21:43based on settlement needs.
21:46So, the process is institutional
21:49adoption,
21:50then RUSD throughput,
21:52then XRP density requirement.
21:57RUSD throughput is what forces XRP
22:00repricing.
22:02RUSD throughput must be collateralized
22:05by the XRP's value density, not its
22:08quantity.
22:11Okay?
22:12So, this is key. RUSD throughput will
22:15continuously growing as more adoption,
22:18more institutions, more countries
22:20act XRP supply always stays fixed.
22:25Therefore, XRP price is the only thing
22:29that must rise to maintain
22:32collateralization in the equation.
22:34Okay?
22:35If you need you continue you continue on
22:38the need of RUSD for throughput, then it
22:42must come from XRP.
22:44But you cannot increase XRP. So, the
22:47only thing that you can do is increase
22:48the price, the value density.
22:51So, this is why
22:5345k 72k is the is is the sweet spot,
22:59not the ceiling
23:00for the starting activation.
23:03As our USD
23:05adoption keeps growing, XRP density will
23:08increase and must increase further for
23:11the reason that I just explained.
23:17So,
23:18example,
23:19SBI plus Santander plus Standard
23:22Chartered UK.
23:24So, let's say
23:26SBI corridors runs
23:281.7 trillion in our USD.
23:32Santander corridor run 1.2 trillion in
23:34our USD. And Standard Chartered
23:37corridors run
23:38900 billion in our USD. That's a total
23:41throughput of 3.6 trillions in our USD
23:45that this this these three institutions
23:48need.
23:49Now,
23:50add the three remittance rails, forex
23:52desk, CCP compression, treasury
23:55operations,
23:57and and
23:59real world
24:01assets, and more and more and more that
24:04it's just like adding into all these
24:06operations.
24:08So, now the total throughput easily
24:11reach 5 trillions and 10 trillions
24:13needed in our USD liquidity.
24:16Correct? Are you following me? Now, XRP
24:18must be repriced high enough to
24:21collateralize that throughput that now
24:24increased from 3.6 to to 10 trillions.
24:28And you need to have elasticity, too.
24:31You need to have extra.
24:33So, this is why more institutional
24:35adoption equal more our USD throughput
24:38and equals higher XRP density. That's
24:42why it's not a fixed price.
24:46Am I being
24:48clear enough?
24:52Why our USD throughput grows
24:54exponentially? Institutional adoption
24:57it's not linear.
25:01When one bank joins, its counterparties
25:04join.
25:05It's Forex partners join. It's
25:07remittance partners join. It's treasury
25:10partners join.
25:12It's CCPs join. This creates a network
25:16effect like a like an avalanche all at
25:19once. If if you come, you come with all
25:22your buddies to the party, right? You
25:24don't come alone.
25:25So, RLUSD throughput grows like one,
25:29then three, then nine, then 27, then 31,
25:32then 243, and so on.
25:35So, this is exponential growth force
25:37forces XRP density moving upward.
25:43So, why XRP must start at 45,072K?
25:48Because RLUSD throughput begins in the
25:51trillions on day one.
25:53Not millions, not billions, trillions.
25:57If XRP starts at $1, it's impossible. At
26:00$100, it's impossible. At that $1,000,
26:02it's impossible. At $10,000, corridors
26:04collapse. At 45,072
26:07thousand
26:09as starting point, the corridors can
26:12activate safely, had enough
26:15sufficient liquidity, enough issuance of
26:18RLUSD,
26:20and everybody's happy.
26:22And there's no rough
26:24uh problems running out of RLUSD, not
26:28enough liquidity,
26:30um
26:32interconnection issues, reuse multiplier
26:36uh counterparties disappearing out of
26:38the system, not having enough.
26:41So, this is why 45, 72K is the
26:44activation zone, and not the ceiling.
26:49And by the way, you know why everything
26:52happen all at once or the corridors may
26:55must happen all at one. Cannot be
26:57linear. Cannot be a market related
27:01uh
27:02repricing.
27:04So, why XRP density increases after
27:07activation? I explained that. Once the
27:09system is live, RLUED RLUED adoption
27:12grows, it would be in the trillions
27:16throughput increases, more corridors
27:19join, more jurisdictions connect, more
27:23clearing house cycles run,
27:25more treasury operations route through
27:28RLUED.
27:30And this forces XRP density higher.
27:34So, the long-term density sounds looks
27:36like 45,000 72K for the activation um
27:41repricing. 72 100K will be
27:46early expansion zone. Probably
27:48it will take a few.
27:50And when it's a global settlement and
27:52the whole world is running, which I
27:53don't know when it's going to happen.
27:56Don't ask me when. Probably will be in
27:58the 100 to the 200
28:01and so on.
28:02It depends on how big how how how the
28:06institutions, how corridors, how
28:08throughput and settlement uh requires.
28:13So,
28:15now don't ask me the timing of when the
28:18XRP will be 100K or 200K or whatever. I
28:21don't know. Nobody knows.
28:24But it will be it will happen. And you I
28:26explained you how the process is.
28:29It's not speculation. It's not me
28:31creating it. I explained you how and why
28:33that thing will happen.
28:35So, now you know why XRP must start at
28:3945,000 72,000 and all the corridors must
28:44activate all at once.
28:46So, see you on my