Swapping XRP for XLM – Ripple’s Ex‑Lawyer Explains the Real Mistake

Stellar (XLM) ran hard last week. Up over 80%. Touched a local high of $0.298.

The reason? DTCC – the Depository Trust & Clearing Corporation – announced a tokenization integration with the Stellar blockchain. DTCC handles trillions in securities transactions. By 2027, institutions will tokenize and trade stocks, ETFs, and Treasuries on Stellar.

For crypto, that’s real adoption. Stellar now sits as a top contender for tokenized real‑world assets.

People saw the green candle and made a move. Some swapped XRP for XLM.

The Lawyer’s Take on Swapping XRP for XLM

A former Ripple lawyer (not currently with Ripple) named Bill Morgan tweeted his thoughts.

He said people who swapped XRP for XLM did not necessarily make an incorrect call. Maybe XLM really does have better long‑term prospects than XRP. Time will decide that.

But he pointed out the real mistake.

Those traders forgot one basic fact. XLM price movement is directionally correlated to Bitcoin – just like XRP. That big green candle was always going to retreat.

And then came the punchline: What? Did you think because Stellar does not release XLM from escrow like Ripple that would make a difference?

Read also: ChatGPT Predicts Stellar (XLM) Price If Bitcoin Crashes to $50K

Escrow Isn’t the Problem You Think It Is

Many XRP holders point to Ripple’s monthly escrow releases as a price drag. Stellar has a different supply mechanism. No monthly unlocks from a single company.

The lawyer’s point cuts through that noise. Escrow or no escrow, both tokens follow Bitcoin. When BTC pulls back, XRP and XLM pull back together. The correlation is strong. The direction is the same.

So swapping XRP for XLM right after a 72% parabolic move? That’s not a bet on Stellar’s tech. That’s a bet against Bitcoin.

XLM gave back some of those gains. So did XRP. That’s not a failure of Stellar’s fundamentals. That’s crypto working as usual.

The lawyer’s real lesson: don’t confuse tokenomics with market structure. Stellar’s no‑escrow model is nice. But Bitcoin price still drives the bus.

If you swap XRP for XLM, do it because you believe in Stellar’s DTCC partnership or its real‑asset future. Do not do it because you think XLM somehow escapes Bitcoin’s gravity.

Because that big green candle? It always retreats.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

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