XRP Supply Shock Warning: Crypto Expert Advises Withdrawals From Exchanges

Crypto enthusiast X Remi Relief X has issued a warning about an impending "XRP supply shock," advising holders to withdraw their XRP from centralized exchanges. He argues that the diminishing reserves of XRP on trading platforms, despite the lack of retail or institutional interest, pose a significant risk to those who keep their tokens on exchanges.

Remi contends that the current low supply of XRP on major exchanges is not indicative of increased trading demand but rather a structural vulnerability. This could have severe repercussions during a market rally, as the scarcity of XRP could drive up prices. He views this situation as an opportunity for those who have already transferred their XRP to personal wallets, particularly cold storage, due to the potential price increase from heightened demand against a shrinking supply.

Remi referenced a past quote from Ripple CEO Brad Garlinghouse, highlighting the economic principle that high demand and low supply drive up prices. He also expressed concerns about the lending practices of centralized platforms, asserting that many exchanges lend a single unit of XRP to multiple users simultaneously. This over-leveraging, he warns, could lead to a collapse if multiple users attempt to withdraw their XRP during a market spike, as exchanges may be unable to fulfill all withdrawal requests.

In such liquidity crises, exchanges often freeze accounts and delay access, citing issues like Know Your Customer (KYC) documentation, bank delays, or other identity verification problems. This could leave users unable to participate in a bull run while their accounts are under review. In the worst-case scenario, if an exchange becomes insolvent or collapses, users could lose their funds. Remi recommends keeping assets on exchanges only for short-term selling and moving long-term holdings to private wallets to avoid these risks.

In response to questions about safe storage solutions, Remi named three cold wallet options he uses: Ledger, Trezor, and Tangem. He identified Tangem as the most user-friendly, citing its ability to support assets like XDC and HBAR without requiring third-party applications. He also recommended two YouTubers, Crypto Scrilla and Crypto Dad, as reliable sources for wallet tutorials and setup instructions.

Remi's warning contributes to the broader discussion around self-custody and the reliability of crypto exchanges. His post highlights the tension between convenience and control in the digital asset market and reflects growing concerns about potential liquidity challenges as crypto prices accelerate.