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Ripple vs Coinbase BIDDING WAR for USDC!!!🚨 · The Paul Barron Crypto Show

• 0:06
  Speaker 1: Coinbase and Ripple are now in a bidding war and
• 0:09
  Speaker 1: that is for USDC, the Circle company. Today we'll break
• 0:12
  Speaker 1: it down for you. My name is Paul Barren. Welcome
• 0:14
  Speaker 1: back into tech path.
• 0:15
  Speaker 2: Let's get going.
• 0:16
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  Speaker 2: So check it out. See what you guys think.
• 0:48
  Speaker 1: The breaking news today, of course, the Circle is in
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  Speaker 1: talks to sell and Coinbase and ripple as are emerging
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  Speaker 1: as the top buyers. Now what does this mean. This
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  Speaker 1: means that we will most likely see bidding war for Circle.
• 1:02
  Speaker 1: Remember Circo has been setting up for an IPO. But
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  Speaker 1: at the same time, you have to remember that what
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  Speaker 1: is happening in the stable corn world is that once
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  Speaker 1: we have regulation, the likelihood of the competition is going
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  Speaker 1: to go tenfold quickly, especially here in the United States.
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  Speaker 1: And I think this does mean that this sale is
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  Speaker 1: going to happen.
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  Speaker 2: Now.
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  Speaker 1: There's been a lot of people speculating this for some time.
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  Speaker 1: We've brought this up on the show before, is that
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  Speaker 1: Ripple could be a potential buyer. One thing that has
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  Speaker 1: to be really kind of mentioned here is this is
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  Speaker 1: in the Fortune Report and the sources were unnamed, So
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  Speaker 1: not doubting that Ripple and Coinbase are in talks, but
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  Speaker 1: you could cite literally anyone if you look at the
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  Speaker 1: way they're discussing it. And I think the real question
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  Speaker 1: is why has Coinbase not already made a play on this?
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  Speaker 1: So is there something at Coinbase that would hold them
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  Speaker 1: back from it, or is there a potential less valuation
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  Speaker 1: that could be brewing if they get it done maybe
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  Speaker 1: throughout this bidding war that I think this is a
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  Speaker 1: question that you have to ask yourself, is why have
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  Speaker 1: we not seen Coinbase acquire Ripple before now or acquire
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  Speaker 1: Circle before now? Ripple previously offered four to five billion
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  Speaker 1: to acquire Circle earlier this year and they were rejected.
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  Speaker 1: And this is one of the guys that's worked at
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  Speaker 1: Goldman and Blackstone, and these are kind of these premiums
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  Speaker 1: that would fall into IPOs that are potentially out there
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  Speaker 1: if you're wanting to get them off the market. This
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  Speaker 1: would likely end up around six to six and a
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  Speaker 1: half billion if the deal gets done, so it's a
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  Speaker 1: typical acquisition premium of about twenty to thirty percent, which,
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  Speaker 1: of course, taking an IPO valuation of around five billion,
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  Speaker 1: is what they're looking at.
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  Speaker 2: All of that, you've got to look at.
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  Speaker 1: The potential market of what stable coins could do. Many
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  Speaker 1: people would look to traditional credit cards, and if you
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  Speaker 1: look at stable coins versus the payment processors out there
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  Speaker 1: right now, you can see be some MasterCards starting to
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  Speaker 1: lose a little bit ground. And we haven't even really
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  Speaker 1: started yet with stable coins. Imagine when merchant services start
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  Speaker 1: to truly come in line with all of this. That
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  Speaker 1: would get very interesting, very quickly going forward. And that
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  Speaker 1: is a question that could rattle the cage of companies
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  Speaker 1: like Visa, who are holding at a seven hundred and
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  Speaker 1: fourteen billion dollar valuation right now. Imagine the disruption in
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  Speaker 1: the credit card industry if we truly saw a US
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  Speaker 1: stable coin start to get great market share because of partnerships.
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  Speaker 2: Like what we're talking about.
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  Speaker 1: Other things is if you look at the market cap
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  Speaker 1: in comparison right now, XRP with a market cap of
• 3:42
  Speaker 1: eth would set it around five dollars and twenty cents.
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  Speaker 1: But at the same time, many people anticipate that this
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  Speaker 1: would considerably increase xrp's value. All of this will come
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  Speaker 1: down to who has the biggest cash pile and how
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  Speaker 1: does this play out if you look at the cash
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  Speaker 1: piles right now now? Remember though, RIP is setting on
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  Speaker 1: holdings at about ninety four billion based on estimated around
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  Speaker 1: forty billion in XRP at the current price at two
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  Speaker 1: thirty seven. But at the same time they aren't able
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  Speaker 1: to get rid of that unless the judge maybe changes
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  Speaker 1: the position. And if you look at what's happening right
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  Speaker 1: now in the case, you've got, of course this going on.
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  Speaker 1: Judge torres Is denied the party's motion for the the
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  Speaker 1: indicative ruling. If your jurisdicition were restored to the court,
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  Speaker 1: the court would deny the party's motion to procidually improper.
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  Speaker 1: So what that simply means is they would basically allow
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  Speaker 1: Ripple to go ahead and liquidate if they wanted to.
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  Speaker 1: I'm kind of curious for you guys, if you're an
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  Speaker 1: XRP holder, would you be okay if Ripple were to
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  Speaker 1: sell some of their tokens so that they go through
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  Speaker 1: an acquisition and be able to have the cash in
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  Speaker 1: position to acquire Circle comment down my low. Let me
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  Speaker 1: know how you guys it would feel about that. Now,
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  Speaker 1: that's not necessarily the only source.
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  Speaker 2: You got to look at.
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  Speaker 1: Other places could come within this to the game, and
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  Speaker 1: that is going to be SBI holdings.
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  Speaker 2: If you just look at SBI.
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  Speaker 1: Remember SBI one of the biggest XRP holders out there
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  Speaker 1: also one of the biggest Japanese banking ecosystems. This could
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  Speaker 1: get pretty interesting if you look at the overall value
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  Speaker 1: and whether or not they could actually come into potential
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  Speaker 1: cash flow positions to support a Ripple bid. So all
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  Speaker 1: of this, of course will have to be approved, I'm sure,
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  Speaker 1: and we will probably see a lot of maybe issues
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  Speaker 1: that come up even with the SBI position. But remember
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  Speaker 1: that they had promised to get XRP integrated into the
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  Speaker 1: Japanese banking system very quickly. Now if that and it
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  Speaker 1: hasn't happened yet, So if that does happen, the potential
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  Speaker 1: there is pretty significant because what you're talking about is
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  Speaker 1: the projections of the Japanese banking system right now. If
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  Speaker 1: it's just one percent adoption for XRPS, price could go
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  Speaker 1: to around three fifty. If it is up to ten percent,
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  Speaker 1: you can kind of see we're talking about a thirteen
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  Speaker 1: dollars and that's without a Ripple acquisition, so or excuse me,
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  Speaker 1: the USDC and Circle acquisition. If a Circle acquisition is done,
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  Speaker 1: this is going to give even more distribution and more
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  Speaker 1: validity to what Ripple is trying to do. Remember, cross
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  Speaker 1: border payments also play into this. You look at the
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  Speaker 1: current market cap right now at USDC, which would add
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  Speaker 1: to that value of Ripple. Could we be talking about
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  Speaker 1: a number two token here in a matter of a
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  Speaker 1: few months, or maybe dare I say a number one token.
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  Speaker 1: So just keep your eye on these numbers right now,
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  Speaker 1: because this is a very big play going into it.
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  Speaker 1: That's not the only place out there, I mean, there's
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  Speaker 1: other companies that could come in and swoop and try
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  Speaker 1: to grab this because this is a jewel for companies
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  Speaker 1: who have not necessarily positioned in the marketplace. I don't
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  Speaker 1: know if a bank would come in, but a tech
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  Speaker 1: firm could come in. There's a lot of companies that
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  Speaker 1: could line up. The key is where is the biggest
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  Speaker 1: cash coffer to be able to pull off a six
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  Speaker 1: billion dollar to maybe even seven billion dollar acquisition.
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  Speaker 2: If you take a look at.
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  Speaker 1: Coinbase's assets, you can see a little bit lower, setting
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  Speaker 1: it around eight point five billion in cash and almost
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  Speaker 1: two point eight billion in cryptocurrency investments. So the nine
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  Speaker 1: point five number is mostly the recent you know, around
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  Speaker 1: their financial summary. So if you kind of compare that
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  Speaker 1: versus everything on their balance sheet, which is around twenty
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  Speaker 1: two billion, which means they could go get.
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  Speaker 2: Cash for this, you know, loans.
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  Speaker 1: They are also in a position where they could make
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  Speaker 1: the acquisition, though that would trigger I think a balance
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  Speaker 1: sheet reshuffle, maybe not necessarily in a good way, But
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  Speaker 1: again it depends on who your banking partners are as
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  Speaker 1: to how they might see that. So this is all
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  Speaker 1: leaning into a very positive move overall. If you look
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  Speaker 1: at Ripple, here's John Deeton kind of talking about this
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  Speaker 1: because everybody kind of said it, I.
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  Speaker 2: Would agree Ripple was dead. Clearly that is not the case.
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  Speaker 1: We're continuing to see some pretty big moves here, including
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  Speaker 1: the launch of a regulated XRP futures on the CMME group.
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  Speaker 2: So all this is going in the right direction.
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  Speaker 1: Remember that Ripple at one point minuted up to twenty
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  Speaker 1: percent of USD traffic at USDC traffic. Most of that
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  Speaker 1: was in a conversion of tether again, but it just
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  Speaker 1: shows you the power of what Ripple has over this ecosystem.
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  Speaker 1: Let's take a look quickly at the charts, and let's
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  Speaker 1: just take a look at where we are right now
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  Speaker 1: on XRP, and you can kind of position right now
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  Speaker 1: holding that two thirty five, This would be a very
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  Speaker 1: very interesting time for Ripple. If Fiscus comes together again,
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  Speaker 1: it would be very interesting for coinbase because when you
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  Speaker 1: look at Coinbase's stock after taking a little bit of
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  Speaker 1: a hit last week with everything, but at the same
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  Speaker 1: time a bit of a gain in the sense of
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  Speaker 1: them hitting the S and P five hundred still holding
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  Speaker 1: out right now and continuing to climb. So at two
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  Speaker 1: sixty three, could it return to its all time high
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  Speaker 1: up and around the three fifty range.
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  Speaker 2: This will be the question everybody's going to be.
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  Speaker 1: Asking, if you look at three comparisons here and then
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  Speaker 1: I'll give you my opinion on how it might playout.
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  Speaker 1: And one, of course, you have to consider a dark horse.
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  Speaker 1: This could be a new entry into the bidding war
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  Speaker 1: now that we know it's for sale.
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  Speaker 2: That's one.
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  Speaker 1: Two is why hasn't coinbase already made a play for this?
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  Speaker 1: They could have got it maybe cheaper. Was this a
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  Speaker 1: strategic error or something else? Is there something else going
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  Speaker 1: on that maybe we just are not privy to. And
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  Speaker 1: then the lastly, if you look at who could win
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  Speaker 1: this right now? If you know Circle is in a
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  Speaker 1: position saying, hey, guys, right a check today, we're ready
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  Speaker 1: to go, who would win? My point right now is
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  Speaker 1: I'd give it a forty five percent Coinbase, a forty
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  Speaker 1: five percent XRP, and a ten percent dark horse.
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  Speaker 2: So hopefully that gives you guys.
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  Speaker 1: It's up for grabs right now. We'll break this down
• 9:44
  Speaker 1: as more news comes out. Of course, this is big
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  Speaker 1: news as Ripple could really play into I think a
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  Speaker 1: very intriguing position in the United States if they were
• 9:55
  Speaker 1: able to get Circle in their bag. So you guys,
• 9:59
  Speaker 1: let me know in the comments, and if you're not
• 10:00
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• 10:02
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• 10:03
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• 10:09
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• 10:11
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