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ObeyTheWafflehouse

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  1. In theory. Someone has to be monitoring the liquidity (either the exchange/MMs/ or traders). Here's the idea, when a transaction is started from beginning to end. It is initiated at the exchange USD -> XRP, XRP -> XRP, XRP-> MXN. There will be an accumulation of XRP sitting at the second exchange (assuming a positive flow). How is that accumulated XRP redistributed back into the market? Arbitration is the best answer I have that makes logical sense, and there could be other methods too. However, I bet this redistribution back into the market (arbitration?) may coincide with the down peaks or down cycles of the bitso liquidity index. This is a nascent market, so liquidity aka trade volume has to be taken in baby steps. Otherwise if you hypothetically shove, let's $1 billion dollars, through the Mexican corridor on the bitso exchange, you would get massive price swings at that exchange and more than likely the corridor would seize until more liquidity is provide. Side note: I don't know the exact mechanics of the inner workings of an exchange when a transaction is initiated from beginning to end, but this is how I imagine the system would work.
  2. I have not studied any type of xrapid transactions, but here is my perspective. Any market normally operates in cycles. Traders try to identify trends/patterns. I am guessing from this chart that the reason why there is this cycle pattern has to do with liquidity provided in the market at a period of time. Think of it this way, when a market enters an uptrend, the market does not go straight up under normal conditions. There are these oscillations/waves that occur while in an upward trend. The up oscillations are trend continuations while the down oscillations are pullbacks. Pullbacks allow the market to "catches it breath" before moving to a higher price point. If you do not have these pullbacks occurring, the market can exhaust itself in one direction and you have a violent pullback or a trend reversal. I believe this chart is showing just that, but it appears they are monitoring the liquidity of XRP on that exchange to try NOT to exhaust all liquidity.
  3. "any assumptions SOLO is a stablecoin is 100% incorrect." I stand corrected, this is from their whitepaper. Their whitepaper is definitely causing some confusion due to vague statements. "SOLO coins and subsequent stablecoins are issued on the XRP Ledger allowing liquidity to be moved almost instantly."
  4. As @Tinyaccount said, it is very interesting that David's proposal of a new mechanism for issuing a stablecoin and Coinfield's announcement occurred relatively in the same period of time. However, these two instances may just be coincidental (doubtful). It seems that SOLO will not be backed by XRP right now, but David's new proposal will allow for an XRP backed stablecoin (from my understanding). SOLO, since it is a stablecoin, will need some type of backing, whether it's USD/CAD/etc. IMO with the dynamics of crypto, there will be some type of transition from Fiat to Crypto backing. Why? The economics of fiat state that ALL fiat currency will always go to zero. Meaning that a stablecoin with a backing of fiat will continually need more money to back that stablecoin due to the nature of the devaluation of that fiat (Ex. inflation, money supply, etc.). However, if you have a crypto (commodity/ deflationary currency/ fixed supply) it may be more reasonable to back a stablecoin due to the deflationary nature of that crypto. Think of why nations have gold reserves. If sh*t ever hits that fan, they can offset by selling gold.
  5. It's look like there is a new proposal on how stablecoins will be issued. Joelkatz on a previous thread. " We propose adding a collateralized stablecoin feature to the XRP Ledger. The key distinguishing property of this proposal is that the stablecoin is always redeemable for XRP on the ledger from the collateral pool. So, for example, if you hold one unit of a USD stablecoin, you can make on-ledger payments at any time just as if you held $1 worth of XRP. We propose a scheme as follows: Anyone may place XRP into a position that they own. If the position is sufficiently collateralized, it may issue a stablecoin. Position owners may adjust the XRP in their positions so long as it maintains sufficient collateral. Position owners may issue and redeem stablecoins in their positions so long as it maintains sufficient collateral. Severely undercollateralized positions may be taken over by re-collateralizing them -- whoever does so keeps the remaining excess collateral. An order book mechanism will be used to permit the stablecoin to be automatically exchanged for XRP by redeeming against the least collateralized positions first. This encourages over-collateralization and cleans up positions that are in danger of becoming under-collateralized." It sounds like the new mechanism proposes that you must have a sufficient position of XRP to issue a stablecoin.
  6. "Tokenized assets are Stablecoins in nature and pegged to the real value of the non-blockchain based assets. They are redeemable via CoinField’s centralized platform or traded on CoinField’s XRPL Decentralized Exchange against XRP and SOLO" "....CoinField plans to release a suite of open-source software development toolkits that makes it possible to seamlessly integrate the process of transferring tokenized assets and SOLO coins to and from XRP addresses." With this being said from their whitepaper, it appears that XRP will be backing tokenized assets and SOLO coins. Someone would not be able to hold an asset in an XRP address if it is not XRP backed. If I misunderstood this, maybe someone with more in-depth knowledge could elaborate more.
  7. I don't know much about you, but you can be an author on Coil. Start a blog or a vlog. It might not seem like much, but the more quality content you create, the greater the audience it will attract thus developing the XRP ecosystem even more.
  8. Let's be clear here. Xrapid/ODL volume may put upward pressure on the price of XRP in the SHORT TERM. However, larger volume attracts more Market Makers, and the more Market Makers there are, the more upward pressure on the price of XRP in the LONG TERM. With that being said, this is a very very positive indicator that XRP is heading in the right direction, and that Ripple IS making tremendous progress.
  9. On page 27, I see there is a reference to the Five Bells Ledger and Hyperfabric. I cannot read japanese but the Five Bells Ledger is also part of Ripple's software. I stealing this from another thread I posted on. I would recommend giving it a read.
  10. Of course they won't control the personal information, they will only sell it.
  11. MMs don't care necessarily about the price of XRP because they are trading XRP to fiat back and forth. The greater profits for them are charging the "fee" (ask/bid price) because that is where their biggest profits lie. They are not investment firms. Higher prices of XRP are an after thought in their minds.
  12. 9:27-10:00 How the flow works from beginning to end. Obviously in this example from Coinbase (which is a new example) to Bitso a net flow of XRP would be to Bitso. Bitso has more XRP than Coinbase. 10:28 Ripple is strategically partnering with MM through contracts that acts as an incentive to bring more MMs AKA deeper liquidity. 11:00 New market participants or MMs are realizing there is a real arbitrage opportunity (assuming the unbalanced flow of XRP from Coinbase to Bitso). 11:15 Ripple doesn't have to incentivize MMs or pay MMs to make the market. An increase of volume through the corridor provides enough opportunity for profit (again assuming from the unbalanced flow of XRP). To answer your concern, yes, xRapid by itself may not put upward pressure on XRP's price because there is not enough volume. The arbitragers and MMs are taking the profits from the unbalanced flows of XRP. However, bobway stated "If you ask a speculator what will drive up the market price, they'll often tell you, "More people who want to buy and hold XRP long term." It is because increasing buying volume without increasing selling volume exhausted the lowest price offers first, then must take higher and higher offers to satisfy demand. But market makers don't seem like long term HODLers to most speculators. This is because XRP market makers are constantly buying and selling XRP at the same time. So what could seem less HODL than having continuous sequence of SELL order in the market at all time? But it turns out that only half understands the situation. In order to place a SELL order in the market, you must first be HODLing the XRP you're wanting to sell. And if you want to keep sell orders in the market continuously, forever, you must also be HODLing XRP continually, forever. So market makers continuously BUY back whatever XRP they sell, as soon as possible. This gives them the XRP inventory they need to sell again on the next payment. So you can visualize an XRP/USD market maker who deploys half of their capital in XRP and the other half in USD. Then they work to continually keep that value balance equal. Of course they also work to keep their total investment continually growing as well. A MM's investment growth comes from "transaction fees" paid by the senders of a payment that ripples through XRP as a bridge. It really isn't an explicit "fee". It is the difference between the market spread prices (highest bid vs lowest offer). In effect, a MM is always selling XRP for a price slightly higher than the price they buy the XRP back for. When doing this, the MM's profit scales with payment volume rather than with XRP price change. So if a MM is profitable trading against back and forth payments on a given corridor (XRP/USD) they want to keep trading that corridor, forever. And to do that, then need to keep HODLing XRP forever. So how can you increase the price of XRP? Well, of course, attract more market makers to the corridor and system. They can't trade a corridor until AFTER they purchase their stake of XRP. And once they have purchased that XRP and are profitably making the market, they are in effect long term HODLers. Note, a MM's profit does not scale with their investment. It scales with increasing payment volume through their investment. So doubling payment volume can support twice as many MM at the same ROI. Of course this requires cumulatively doubling the MM's XRP stake as well. All utility comes for satisfying the NEED of someone to send a payment. It is this NEED that encourages them to pay slightly higher fees (Market Order) than those who merely WANT to make a payment but have more time to wait (Limit Order). But of course the whole strategy is worthless, if the XRP bridge currency path costs more end-to-end than alternative pathways. If we presume payment routing algorithms always take the lowest cost path (for Alice), then end-to-end cost becomes the switch that determines if the direct fiat/fiat market makers turn a profit, or if the fiat/XRP bridge market makers turn a profit." Hopefully this helps!
  13. This is the service they are announcing in your OP. Prior they announced partnership with visa direct which is, "a real-time payments network for business and person-to-person (P2P) payments, is helping financial institutions and technology companies allow their customers to transfer funds to a debit account in 30 minutes or less." and the debit card service "works with Visa’s real-time payments platform." So essentially a debt card system using the payments platform. This is good news overall.
  14. Why do you say potentially October? Was it from this quote, "Recipients in Mexico and the Philippines will be able to receive money instantly 24/7/365 when the service launches in October." If so, that article was published in 2018. If not, disregard my post for not understanding. However, it is very ironic that MG and Visa launch a partnership that "Recipients in Mexico and the Philippines will be able to receive money instantly 24/7/365 when the service launches in October (2018)", since Ripple's first corridors were open in Mexico and Philippines. This information implies Ripple may be making a formal announcements a year after these events take place.
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