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It’s the Shane Ellis theory and Jake even says so. He takes no credit for it.
If XRP is used to help unwind the global reverse carry trade, the price impact would be massive.
Why?
The reverse carry trade happened because institutions borrowed cheap yen and invested in higher-yield assets. Now that the yen is strengthening and global rates changed, those positions are blowing up. To unwind safely, institutions need:
Instant settlement
Deep liquidity
A neutral bridge asset
Fast FX conversion without risk
No multi-day settlement delays
Legacy rails like SWIFT, ACH, and correspondent banking can’t handle a rapid unwind. XRP can, because:
1. It settles instantly
2. It’s neutral (not tied to any one country)
3. It can move multi-billion positions without counterparty risk
4. It eliminates FX friction
5. It has built-in liquidity routing and auto-pathfinding
If XRP becomes the tool for the unwind, liquidity must be locked up. XRP’s supply is fixed. When demand rises and supply is constrained, price has to rise to provide enough liquidity for the volume.
Rough price ranges based on liquidity math:
3–5% of the carry-trade unwind using XRP → $120–$350
10–15% usage → $500–$1,000+
If XRP becomes the preferred settlement path → $1,500–$5,000+
This is not speculation — it’s how liquidity assets behave when throughput demand surges under fixed supply.
The BIS, IMF, BOJ, and US regulators have all used phrases like:
“neutral settlement asset”
“instant FX clearing”
“bridging liquidity”
“tokenized settlements”
They’re clearly describing the function that XRP is designed for.
Bottom line:
If XRP is used to help unwind the reverse carry trade, the price must go much higher. It’s literally what the system mathematically requires to function during a liquidity crisis.
5:45 No, I've actually asked Jake about that recently. He says T-bills and the dollar are gonna be fine. Equities will drop 30% or more! But the dollar will be ok — and good thing!! What the hell good is $1000 (or $10k!) XRP if the dollar is worthless!!🤦
These you have 30 day videos and years later , same
🎉🎉 stay safe, stay humble, act with logic and common sense not with emotion. Great vid
30 days ?
Iso20022 goes live means XRP will be used as intended not hoarded in a fund XRP must be used to have value.
Remember there is the wholesale cbdc n retail cbdc n its more important for the wholesale to be in place which may be already. Also xrp price needs to be high before the crisis for it to function as required. The crisis might even pull xrp price down.
30 days ?
What a load of horseshit