Ripple charges for delivering ammunition, and has taken a business banks have done for decades
Ripple is making money by charging fees for providing ammunition to people using leverage to bet on U.S. stocks, while XRP is currently only $1.39. This business used to be the exclusive turf of banks for decades, but now a payment rail company has taken a bite out of it, and it is doing so in a lane the crypto crowd has never really stepped into.
To break it down: retail traders open leveraged positions betting on whether stocks will rise or fall, Ripple provides the financing channel and takes a fee, while the profit or loss from being right or wrong belongs to the customer, and every cent of its fee remains intact. It is the same script as when Wall Street provided leverage to hedge funds back in the day. The only difference is that the former does not care about your credit, only whether you bet in the right direction.
Looking at other undercurrents in the same market: BTC-collateralized lending is no longer used only for rolling speculation. Lenders are saying it very plainly: tuition and operating capital are both being raised through collateralized borrowing; the Glamsterdam upgrade test for ETH pushed the per-block gas cap to around 200 million, and Ethereum has no intention of following price action at all, instead focusing on widening the road.
My view: this round is about capital moving around, not capital leaving. When hot money piles in, the first things to become valuable are financing and block space — interest and gas are the top two costs in all markets. Whoever cuts those two costs does not need you to guess where the water will flow. Rather than betting direction every day, it is better to bet the channel: bet on the side collecting interest, because historically the win rate has always been much higher than betting on the side paying interest.
The time to verify the answer is tonight at the close: whether XRP can hold 1.39, and if it breaks, which stop comes next. Once the market closes, the result will be clear, and then we can see whether the chart gives it any respect. 🐶 Come watch Elon’s dog together ✨🚀
Ripple is making money by charging fees for providing ammunition to people using leverage to bet on U.S. stocks, while XRP is currently only $1.39. This business used to be the exclusive turf of banks for decades, but now a payment rail company has taken a bite out of it, and it is doing so in a lane the crypto crowd has never really stepped into.
To break it down: retail traders open leveraged positions betting on whether stocks will rise or fall, Ripple provides the financing channel and takes a fee, while the profit or loss from being right or wrong belongs to the customer, and every cent of its fee remains intact. It is the same script as when Wall Street provided leverage to hedge funds back in the day. The only difference is that the former does not care about your credit, only whether you bet in the right direction.
Looking at other undercurrents in the same market: BTC-collateralized lending is no longer used only for rolling speculation. Lenders are saying it very plainly: tuition and operating capital are both being raised through collateralized borrowing; the Glamsterdam upgrade test for ETH pushed the per-block gas cap to around 200 million, and Ethereum has no intention of following price action at all, instead focusing on widening the road.
My view: this round is about capital moving around, not capital leaving. When hot money piles in, the first things to become valuable are financing and block space — interest and gas are the top two costs in all markets. Whoever cuts those two costs does not need you to guess where the water will flow. Rather than betting direction every day, it is better to bet the channel: bet on the side collecting interest, because historically the win rate has always been much higher than betting on the side paying interest.
The time to verify the answer is tonight at the close: whether XRP can hold 1.39, and if it breaks, which stop comes next. Once the market closes, the result will be clear, and then we can see whether the chart gives it any respect. 🐶 Come watch Elon’s dog together ✨🚀