BullRunners (@BullrunnersHQ), a crypto YouTuber and analyst, recently shared a video on X offering insights into borrowing strategies with XRP as collateral. His remarks focused on practical considerations for those weighing lending options online, particularly around managing risks of volatility and platform reliability. According to him, “Don’t put all your eggs in one basket.” He explained that borrowers should consider spreading large loan amounts across multiple platforms and family offices. Doing so, he argued, reduces counterparty risk and allows greater flexibility across loan terms. This perspective is grounded in the understanding that no lending platform, regardless of its reputation, is without risk. PRO TIP FOR BORROWING #XRP LOANS pic.twitter.com/iMQH2rWn02 — BULLRUNNERS (@BullrunnersHQ) August 30, 2025 Key Risks Identified BullRunners pointed to liquidation risk as the foremost issue for borrowers. He noted that if XRP’s price declines significantly and the loan-to-value (LTV) ratio rises beyond a platform’s threshold, the collateral is automatically liquidated to cover the loan. He reminded viewers that such mechanisms are built into lending systems and can have severe consequences for borrowers who do not plan conservatively. Interest costs also formed part of his discussion. He stated that loans backed by XRP “typically run 8 to roughly 13% annually,” a figure that can substantially affect repayment planning. In addition, he highlighted custody risk, warning that trusting a third party with digital assets requires close attention to security, insurance coverage, and a proven track record in custody and handling large transactions. Conservative Approaches to LTV In offering practical guidance, BullRunners recommended that first-time borrowers start with a conservative loan-to-value ratio. He suggested “35%, 30%, or even 25%,” noting that lower ratios provide more breathing room in case of extreme market volatility . Although no ratio can fully eliminate liquidation risk, especially in the event of a black swan crash, his advice emphasized measured exposure over aggressive borrowing. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 This cautionary approach aligns with the broader reality of cryptocurrency markets, where significant price swings are frequent. Borrowers who adopt lower-risk LTV strategies may find themselves better positioned to endure sudden downturns without facing forced liquidations. XRP’s Expanding Role in Finance While the video focused on lending strategies, XRP’s role as a collateral asset is also tied to its growing utility and adoption . The digital asset continues to find use cases in cross-border payments, institutional partnerships, and integration into emerging decentralized finance systems. Its established position within payment networks and enterprise-grade solutions contributes to the willingness of lending platforms and family offices to accept it as collateral. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Expert Tip for XRP Holders appeared first on Times Tabloid .
