What's Behind XRP's Resilience?

Summary

Markets Daily Crypto Roundup: What's Behind XRP's Resilience?

Release Date: April 30, 2025
Host: CoinDesk
Guest: Dan Tapiero

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Introduction

In the latest episode of Markets Daily Crypto Roundup, CoinDesk delves deep into the enduring resilience of XRP amidst the tumultuous crypto market landscape. Host CoinDesk welcomes renowned investor and founder, Dan Tapiero, to unpack the factors contributing to XRP's steadfast position in the market.

XRP ETFs and Market Buzz

The conversation kicks off with the much-anticipated debut of XRP Exchange-Traded Funds (ETFs) and Pro Shares. Dan Tapiero acknowledges the widespread chatter surrounding these financial instruments:

"Everybody's talking about them."
— Dan Tapiero [00:38]

However, Dan points out that not everyone in the crypto sphere is equally excited about XRP ETFs, indicating a divided sentiment within the community.

Diverging Opinions: Who Isn't Excited About XRP?

When probed about the skeptics of XRP, Dan sheds light on various factions within the crypto ecosystem that remain unconvinced:

"Twitter, of course. I mean, any bitcoin, so certainly bitcoin Max. Any bitcoiner either. Solana focused person."
— Dan Tapiero [00:57]

He elaborates that many non-XRP enthusiasts perceive XRP as too centralized and have reservations about its distribution mechanisms. This skepticism contributes to a fragmented crypto community, with XRP advocates often feeling marginalized.

XRP's Resilience Amidst Regulatory Challenges

Dan emphasizes the remarkable durability of XRP, especially in the face of regulatory headwinds:

"Do you remember was it last year or two years ago, Gensler banned. He basically attacked them and then they got taken off all of the exchanges."
— Dan Tapiero [01:53]

He recounts how XRP was delisted from several exchanges following actions by regulatory bodies like the SEC under Gary Gensler. Despite these setbacks, XRP exhibited a strong comeback, remaining listed on platforms like Kraken and Uphold. Dan attributes this resilience to what he describes as the "Lindy effect," where the longer a technology survives, the stronger it becomes due to network effects.

Ripple's Strategic Evolution and Network Strength

Discussing Ripple, Dan praises its transformation and strategic positioning within the digital asset ecosystem:

"Ripple has turned itself into, in a way, a holding company, a conglomerate of assets within the digital asset ecosystem."
— Dan Tapiero [03:00]

He highlights CEO Brad Garlinghouse's adept navigation through regulatory challenges and his commitment to advocating for the crypto space. Dan also touches upon Ripple's "made in America" stance, which he believes plays a crucial role in the anticipated longevity of XRP ETFs.

Dan Tapiero’s Personal Journey with XRP

Shifting to a personal narrative, Dan shares his initial foray into cryptocurrency, specifically his early investments in Bitcoin and XRP:

"My first trades were in Bitcoin and XRP, your first crypto trades...it was just, it was liquid and it had the interface was actually really nice."
— Dan Tapiero [04:11]

He fondly recalls the liquidity and usability of XRP during its nascent stages, facilitated by platforms like Uphold (formerly BitReserve). Dan candidly reflects on missed opportunities:

"I wish I'd bought and held it all at 1/10 of $0.01."
— Dan Tapiero [05:40]

Despite not being a prominent XRP advocate, his early experiences underscore XRP's potential and the impact of timing in crypto investments.

Reflections and Forward-Thinking Advice

Dan imparts wisdom to both himself and his analysts, emphasizing the importance of seizing investment opportunities regardless of past decisions:

"It's never too late to do the right thing. Which means just because you didn't buy it at 1/10, $0.01 doesn't mean you couldn't buy it at $0.01 or $0.02 or $0.10."
— Dan Tapiero [06:07]

He encourages continued belief in projects one understands and supports, advocating for persistence and strategic investment in promising assets like XRP.

Conclusion and Upcoming Engagements

As the discussion wraps up, the host thanks Dan for his insights and announces his upcoming appearance at Consensus in Toronto. Dan reciprocates the gratitude, leaving listeners with a sense of anticipation for his future engagements.

"Dan, thank you so much for joining Markets Daily today...we'll see you there."
— Host [06:44]

"Absolutely. Thank you. Have a good day."
— Dan Tapiero [06:52]

Listeners are encouraged to attend Consensus from May 14th to 16th, where Dan Tapiero will share more of his expertise.

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Key Takeaways:

• Resilience of XRP: Despite regulatory challenges and market volatility, XRP has demonstrated significant staying power, bolstered by a robust network effect.
• Diverse Opinions in Crypto: The crypto community is fragmented, with varying degrees of support for XRP based on decentralization and distribution concerns.
• Strategic Leadership: Ripple's evolution into a conglomerate within the digital asset space, under Brad Garlinghouse's leadership, has been pivotal in sustaining XRP's market presence.
• Investment Insights: Timing and strategy are crucial in crypto investments, with opportunities available regardless of past decisions.

This episode offers a comprehensive look into XRP's enduring presence in the crypto market, enriched by Dan Tapiero's firsthand experiences and strategic perspectives.

Transcript

[Dan Tapiero]

But one very impressive thing about XRP is just how long it's lasted, how many times it's come under attack. And I think that ripple, you know, it's this Lindy effect. The longer it. It seems to exist, the more sort of strength it gathers, the greater the network effect.

[Host]

Dan, welcome to Markets Daily.

[Dan Tapiero]

My pleasure to be here.

[Host]

All right, everyone is Talking about these XRP ETFs, Pro shares debuting three. They are.

[Dan Tapiero]

Everybody's talking about them.

[Host]

I mean, everyone on that world, everyone on ED is everyone.

[Dan Tapiero]

I think there are a whole bunch of people that are definitely not talking about them. But. But you and I are going to be talking about them.

[Host]

We really are.

[Dan Tapiero]

So.

[Host]

Okay, why don't you tell me about the people who are not talking about them. Who is not excited on crypto?

[Dan Tapiero]

Twitter, of course. I mean, any bitcoin, so certainly bitcoin Max. Any bitcoiner either. Solana focused person. I mean, as you know, I mean, the space can, you know, carve itself off into its little groups. And the XRP army has been a thing for quite a few years. And I think there are quite a few people out there, or not part of that army who sort of don't believe in, you know, xrp mostly because it's centralized. And I think people have problems with the way that it was distributed over the years. But I would say, you know, the one very impressive thing about XRP is just how long it's lasted, how, how many times it's come under attack. Do you remember was it last year or two years ago, Gensler banned. He basically attacked them and then they got taken off all of the exchanges.

[Host]

I think I vaguely remember this.

[Dan Tapiero]

Yeah, they were, they were actually pulled off. XRP was pulled off the exchanges. I think it stayed on Kraken, it's one of my portfolio companies, and maybe Uphold as well. I don't. I can't remember if it was one or two, but. And then they bounced back. And I think that ripple, you know, is this Lindy effect. The longer it. It seems to exist, the more sort of strength it gathers, the greater the network effect is. And so I think it's pretty impressive. I mean, the first trades I did in cryptocurrency in 2012 were in Bitcoin and in Ripple at the time, through Uphold. At the time it was called bit reserve. So I understand people have different opinions about the fact that it's not decentralized. And I think people also question whether how much is it really used in payments. And I would argue, and I think and again, I haven't done enough work on this and I am by no means a big XRP guy, but I do respect it for its ability to survive. And I think what it's turned itself into, the company Ripple has turned itself into, in a way, a holding company, a conglomerate of assets within the digital asset ecosystem. So I think there's value there and I think there probably are quite a few people anticipating the XRP ETF lasting also because it's made in America now. Right. That's another thing we know with this administration, if it's, it's made in America. So I think, and you have to, you know, take your hat off to Brad Garlinghouse for having gotten involved with Trump and still very involved. And I think has, has done a lot of hard work for the space itself, doing battle with the previous SEC administration. He's been a pretty strong advocate for the space itself overall.

[Host]

So you said your first trades were in Bitcoin and xrp, your first crypto trades. What made you interested in XRP all those years ago?

[Dan Tapiero]

Well, it wasn't anything more than it was just that was what was available and it was super duper liquid. My gold company that I'd founded called GBI Gold Bullion International, we were the first place in the world where you could buy or sell gold to buy or sell Bitcoin or Ripple. And it was done on the bit reserve platform, which today is Uphold, the Uphold wallet. In fact, you can still buy gold to sell Ripple or the opposite on Uphold. And, and it's still my, my company that's behind that. So it was extremely liquid. I remember having a lot of fun with not a lot of money, just, you know, driving the price in illiquid markets up. It was, you know, it was trading at 1/10 of $0.01, so, you know, getting it to 210 of $0.01. I mean, today it's $2, right? I. So it was just, it was, I don't know, it was, it was liquid and it had the, the interface was actually really nice. You could see all of the amounts of Ripple that were offered and you could just buy pretty much as, as much as you wanted at that time. You know, I mean, it was. So it was more of an experimental thing at the time. Yeah, I wasn't thinking long term hold, I'm going to make a thousand X. No, there was no XRP army.

[Host]

You could have been the person to start the XRP army, Dan.

[Dan Tapiero]

Yeah, it wasn't to be though. It wasn't to be. I wish I'd been that smart. To tell you the truth, I wish I'd bought and held it all at 1/10 of $0.01. Yeah.

[Host]

Yeah. I think there's a lot of people who look back at what they need and what they had access to 10 years ago and wish they made some different decisions. But we're all in this together. It's okay. I think everyone's doing just fine, considering. Yep.

[Dan Tapiero]

I would just say the motto for, for me, at least the one that I tell my analysts is it's never too late to do the right thing. Which means just because you didn't buy it at 1:10, $0.01 doesn't mean you couldn't buy it at $0.01 or $0.02 or $0.10. Meaning if you believe in something, never give up on it. You know, I wasn't sure I really understood Ripple, so it wasn't so much that I could believe in it in a way. Right. It was hard for me to understand how it worked and the dynamic and the balance sheet was a little opaque. But, yes, we digress a little bit.

[Host]

Dan, thank you so much for joining Markets Daily today. And I know that you're going to be with us at Consensys in Toronto next month, so we'll see you there.

[Dan Tapiero]

Absolutely. Thank you. Have a good day.

[Host]

If you want to hear more from Dan Tapero, he will be with us at Consensus in Toronto from May 14th to 16th. You can get your tickets at consensus2025coindesk.com and we'll see you there.