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Everything posted by benstr

  1. Which of the two asset above, which stand to increase in value? the USD or the XRP. The USD cannot rise in value. There's only one choice remaining. The market maker's "underlying asset" isn't USD. Perhaps it's clearer if I use the term 'Inventory".
  2. A 4th scenario.. going back to first payment initiated. After the payment (trade goes off). last trade price $0.276. ODL bought XRP, a market maker sold to ODL at $0.276; ODL payment offset, on receiving exchange sold XRP @$0.275, ODL sold, a market maker bought at $0.275, last trade price. Now it gets interesting... what if market maker that sold to ODL @$0.276 wants to re-balance his position. He'll need to buy back xrp from somewhere. If he sees receiving exchange has bid $0.275 / ask $0.276; He can buy at the ask $0.276, get fill and re-balance his position, right. Yes he made no money on this singular trade, cause he sold XRP @$0.276 & bought it back at $0.276. Look at what happened, he effectively lifted the price up and xrp is $0.276 on both exchanges! In doing so, the value of his XRP inventory has increased, basis last trade price of $0.276. Recall at the start of this exercise, last trade price $0.275
  3. hahahaha "in my opinion" hahahah Can I have some of 'pool of money', which part will you give me: xRapid, xCurrent, and xVia ? It's raining today. "in my opinion, it's cloudy" hahaha, If only all our opinions proved correct 100%.
  4. Before ODL, it was called xRapid. xRapid is a product, just renamed to ODL. Ripple renamed xRapid to ODL On October 2nd, Ripple renamed xRapid, one of RippleNet's key products, to "On-Demand Liquidity" (ODL). Emi Yoshikawa, senior director of global operations and partnerships at Ripple, said that although the name was changed, the same mechanism was used for remittance information transfer, whether using ODL or traditional liquidity planning (pre-financing). Ripple said it will increase its investment in ODL, especially if the payment corridors in the Philippines and Mexico are operating. Previously, Ripple announced the acquisition of Iceland-based cryptocurrency trading company Algrim, which will help Ripple establish ODL https://blocking.net/17683/ripple-renamed-xrapid-to-odl/
  5. reposting a comment from another thread: by Bettergoham "Banks and remittance companies will become greedy, demand to save money, they will pile on to use ODL and cut costs by 50%-70%. Market makers will be forced to hold more and more XRP to ensure they have enough on hand to manage all of the cross border flows and then on the tide of demand will we see our little XRP's value rise. If you can't see how early we are in this, how Ripple has been successful so far in each step of the way, and finally what is now increasingly likely going to be the future of cross border payments then why do you keep showing up here?"
  6. Let's assume 3rd market maker decides to sell into higher price of initiate exchange. He sells every single time into higher price of initiate exchange. Eventually he runs out of inventory. Got no more XRP for sale. Then what's he going to do?
  7. What I described was very basic, single corridor, two market makers. For the moment, let assume there's still a price discrepancy. Let's get a bit complicated. Assume more payments are queued to go off. It may be at a "second and different" ODL corridor. Here is our ever present ODL payment demand. Enter a third market maker. He sees the discrepancy.. he has a choice. 1) sell higher price off initiate exchange or 2) buy the lower price in receiving exchange. For price to remain flat, third maker has to sell into higher price of initiate exchange. But why do that? When he knows in 30 minutes, another ODL payment will queue up, executing the trade "at the ask". Why sell it back down, only to have ODL lift price up again? 3rd market maker, knowing ODL demand is ever present, I'm guessing will opt to buy the lower price in receiving exchange. Now we have price equilibrium but at a higher price. This is how ODL can impact price. This is going with, following demand. No point fighting the buying.
  8. Concerning market makers. My premise or assumptions. 1) market makers make money, capturing the spread. Facilitating order flow. 2) what if the market maker's "underlying asset" also Rise in price? Don't they benefit as a result? What do I mean? Simple, market maker has 1 million xrp of inventory, priced at 27 cents. If this inventory goes to 54 cents, didn't the "value" of their inventory go up? Don't they directly benefit ? I've highlighted a situation, where market makers might find a way to operate, to allow the price to normal rise due to ODL demand.
  9. I was working off, Market Profile Auction Theory. A basic explanation of how price moves upward or downward in an open price auction. There's several books on this. I didn't just make up this stuff up. I was attempting to run through price action to see get to an outcome.
  10. Sure. I might ask, who will sell into initiate exchange to bring price back down? Then we need deal with 2000 payments that need to be executed at market price. As far as 2000 payments on "the other exchange", if it's Not the same exchange. We will get a price discrepancy. Higher on initiate exchange, lower on receiving exchange. I've not attempted to explain how this price discrepancy will resolve. We should not assume it will back to original starting price. It can remain as is because these are two separate exchanges. What ever happens to price requires an equal force applied to move it. This I've not dealt with.
  11. I'm reviewing our conversation. I think the wording "no net increased demand" is incorrect. The word "demand" should be "supply". It should be read "no net increased supply" The ODL transactions "needs" xrp, this is demand.
  12. My summary goes like this. If ODL initially pushes price up on one exchange. And ODL offsetting payment can push price down on "receiving exchange". In a one trade or payment limited world, we are left with a price discrepancy. Some further action will be needed to bring price back in line. It can however just stay that way until the next trade comes along. Moving this along.. lets use three scenarios. 1) a potential buyer surfaces, he inspect price at both exchanges. Decide to buy xrp at the lower price. Yes off receiving exchange. Now if he buys at the market, he just moved price to match initiate exchange. Presto both exchanges are in sync price wise and at a higher price. 2) computer bot sees both exchanges, decide to sell xrp at the higher price. bot sells into initiate exchange, now price is in sync. 3) off initiate exchange, another payment comes in queue. It gets executed now price is 2 ticks higher relative to receiving exchange. Remember if there are tens of thousands payments, what can be the net effect on price as a result of executing these payments? What happens when we expand ODL demand across multiple exchanges? 2-3 active ODL corridors constantly pushing out payments.
  13. So you agree ODL payment has to occur at market price ie buying at the ask price. Usually not always, this moves the last trade price up. This point is important to grasp. The price can go up due to ODL payment. While the payment gets converted back on "the other exchange". Let me repeat, it may not be converted on the "same exchange" the payment originated from. Initiate exchange: last trade price $0.275 bid 0.275 ask 0.276; ODL must source the ask price 0.276. Because if ODL source bid price it has to wait in line to get filled. Ok, payment executed (trade goes off). last trade price $0.276 bid 0.276 ask 0.277 on initiate exchange. On recipient exchange xrp last price can trade down, as ODL payment is unwound. But back at initiate exchange, last trade price remains $0.276 until someone sells it back down one tick. And yes we have a discrepancy of one tick across the two exchanges. My question now is, what happens when you have 2000 payments from initiate exchange? They all have to go off at market price. Run this a second time. Initiate exchange: last trade price $0.276 bid 0.276 ask 0.277; ODL must source the ask price 0.277; Ok, payment executed (trade goes off). last trade price $0.277 bid 0.277 ask 0.278 on initiate exchange. Recall at the beginning of this example, the last trade price was $0.275; now the last trade price is $0.277. BINGO PRICE MOVED UP. Do you see my point? The last price of $0.277 will remain until someone sells it back down. Care to comment?
  14. Ask smart as David is, even he cannot overrule the law of Supply and Demand. Which is what ODL ramping bring into the xrp markets. More specifically, David's answer was not addressing the issue of price. He was addressing the concern of incoming supply.
  15. This is what you mean by common knowledge? I've read David tweet in the past. Lets focus on the second sentence. "there is no net increase in demand but there's no net increase in supply." Two points: 1) I recall David in this tweet, was answering concerns about net xrp supply increase via xRapid. 2) more general inquisitive pondering question. We learn in this way. Currently ODL is 0.3% of XRP daily volume. ODL is ramping up. What happens when ODL becomes 80% of XRP daily volume? Do you think price will remain at 28 cents. With all this demand via payments coming in? Recall I've stated, ODL must initiate a payment at the market price. Keep this in mind when pondering my question. If ODL is seen as "demand" do we defy the Laws of Supply and Demand?
  16. spammed? all that gibberish you wrote was spam. Made no sense at all. And you're concern about spamming. It was fine until you posted two unrelated post. Then it was downhill. I expect people to read to where I asked my final questions. This stuff between you and me they will skip over.
  17. Are you happy with the attention you're getting. I don't do this for just anyone. Only for you.
  18. Are these Ripples, pebbles.. from RippleTrader. Did you pay full price or got them at discount? Sure they can read my transaction. Just like I can read Passengers messages. Like a book.
  19. I bet you're a real winner at trading cryptos. How much have you loss so far?
  20. Nope. Care to try again? psst.. just google and read it.
  21. I doubt that. If you do own xrp. Your like this other guy on Youtube. Disillusioned because his xrp trade went sour. His failed to read the memo. XRP is not a good trading vehicle. You instead of dealing with you losing like a man. Decides to ***** over it. Dump on it. Loser.
  22. Are sh*i you are a freaky banker. Who's so afraid of Ripple's model. You think you have enough power via fud to stop this train. ODL right up your Butt baby.
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