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Ripple Employee
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Posts posted by JoelKatz

  1. 21 minutes ago, Tinyaccount said:

    An issue that arises in that Community Credit system is taxation...  does the government want a piece?  Every time I’ve looked at this idea the giant wall in my mind is what the governments will want to do to it....


    I presume that at least initially, the United States will consider them taxable as either payments or barter (in practice it doesn't matter which) unless they are non-taxable gifts.

  2. 3 minutes ago, DutchBeetle said:


    But does the term "Programmatic" imply that this was more or less pre-determined, or against pre-determined rules? Whereas the 'direct sales' are based on the amount Ripple was willing to sell to 'new kids on the block' in this specific period? Again, I'm more or less undereducated at this!

    Programmatic literally means that they're made by a program. Ripple employs third party market makers to execute these XRP sales to ensure that we can't control the timing or volume to manipulate the markets or benefit from inside information and also to ensure that Ripple insiders (including me) can't use intimate knowledge of the sales strategy to their own advantage. These are professional market makers who understand that we don't want to kill rallies or engineer the price but want to sell with minimal impact.

  3. Some of them fail for fairly obvious reasons. For example, F84CDAB9C9B846AC3F2B5158C5BC683CD0A7AA9AFC296C21CAC263A684CF59A6 tried to offer USD issued by rhub8VRN55s94qWKDv6jmDy1pUykJzF3wq, but you only held USD issued by rvYAfWj5gh67oV6fW32ZzP3Aw4Eubs59B. You must be able to transfer at least some of the asset you are trying to give to whoever takes your offer or the offer will not be placed.

  4. Ripple is not targeting XRP at "retail" use. There are a variety of reasons for this, including the regulatory challenge, but it's also because we (at least some of us) don't think any cryptocurrencies are quite ready for mass adoption through this route yet. (Just as you probably couldn't have launched anything remotely resembling Twitter or Facebook in 1988.)

    We did pursue a gateway strategy for several years. We had a very hard time onboarding gateways, and an unreliable gateway is probably worse than no gateway. Gateways faced challenges with regulatory compliance, customer service, and finding a good revenue model. Part of the problem is interest rates being at a very low level, making it not particularly profitable to hold other people's money. The security problems with interacting with cryptos didn't help either.

    So we pivoted to a strategy where we're promoting the XRP Ledger primarily as the ultimate store of XRP rather than as a decentralized exchange. We plan to expand and enhance our product line's XRP integration to provide XRP liquidity and take advantage of XRP liquidity wherever it may be. xRapid is our first big push to connect payments to XRP settlement.

  5. There are probably a lot of factors at play. One of them is that there are a lot of transactions that seem, at least to me, to be basically junk. With transaction fees so low, there's no real disincentive to submit lots of junk transactions, and people do. The legitimate volume is somewhat lost in that junk.

    To get more useful numbers, you can limit yourself to just Payment transactions or OfferCreate transactions that crossed other offers. And then you can filter out Payment transactions that just seem to be moving assets for no particular reason (we used to see a lot of those, but not so much anymore). Our XRP Charts site and XRP site has metrics like that, and they're probably more useful than raw transaction volume.

  6. 1 minute ago, RippleHerToShreds said:

    "Weekly XRP Trade Volume is defined as the total amount of XRP traded on the Ripple consensus ledger during a given week."

    Off-ledger trading is the majority of trading today. I think the largest on-ledger XRP market is XRP to USD/Bitstamp and it's the 41th largest XRP market.

  7. On 11/24/2017 at 11:33 AM, galgitron said:

    I think this is a little flawed because it assumes an even distribution of those sales, but your selling strategy focuses on higher sales during periods of peak interest.  This subtle but critically-timed XRP selling strategy, artificially deflates the momentum that would normally gather around a speculative moonshot; the metaphorical beat of a butterfly's wings per se.  I've seen this in Monte Carlo sims where small cash amounts are ran through historical-data trade simulations, and the winning strategies work wonders in the real world for small amounts, but take those same strategies with ever-so-slightly more than inconsequential amounts, and now you have trades that influence the market and they completely eradicate the efficacy of the strategy.  It doesn't take much to make a huge difference.

    The point is, if we killed Kim-Jong Il when he was born, we wouldn't have his nuclear arsenal to deal with today.

    To your point about using that cash to cement in the foundation for XRP, by all means, go for it; I couldn't agree with that strategy more.  I just don't think denying price manipulation, however subtle, indirect, or tangential, is completely forthcoming.  If you truly want to be non-disruptive, then your volume of sales should be consistent irrespective of volume peaks, or at least adjust on a running 30-day median.

    I agree with you. Unfortunately, I don't know the exact details of how the transactions are timed or how the spreads are computed. The third party market makers we've employed understand that we don't want to kill rallies or engineer the price and that our desire is to choose sale targets and approximately reach them having as little effect on the price as possible. To prevent me from gaming the system either for personal benefit or to benefit Ripple, or inadvertently giving others the ability to do so, I am not given access to any details. Every suggestion I've made to them got back "we're already doing that", so I think they know what they're doing.

    They might adjust it to a long term median. They might back off when volume is above normal. Those things I don't know.

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