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KarmaCoverage

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Everything posted by KarmaCoverage

  1. @JannaOneTrick great post again! On mobile now, cant wait to check out all the links, thanks. @ADingoAteMyXRP I forgot about that thread, it was an interesting one. I'm still watching Perry's videos. Never heard back from him on my email. I should ring him again.. in due time.
  2. Not only this, but you have to realize that their XRP holdings are effectively international liquidity ammo, or fuel for network liquidity. Not sure many folks realize, that when the networks begin to fight the inevitable "network vs network liquidity competition" just how dominant RippleNet & XRPL will be, and this dominance will be backed up by all that XRP liquidity ammo. Ripple usually refers to this as "market maker incentives". If your going to face a battle, it makes literally zero sense to drop all your ammo, or give it to people who are not aligned with your network's victory. --- For the have vs have not feelings... just remember that there is an infinite amount of money in the world (money is just information) ...yet you only have a limited amount of time in your life. Allocate your limited time well... shy away from trading limited resources (time) for unlimited resources (money). If you dont want to be a have not, learn "how to make money", and forget "how to earn money". Your work will always be worth more than someone else is willing to pay you, otherwise they would not profit from your labor.
  3. Is nobody upset with how much fbook stock Zuckerberg owns? That's essentially unprecedented for a public company. Zuck has 18% of fbook, vs Gates has 1.3% of Microsoft. He has almost 1 in 5 votes, not as an investment firm but as a single man who could end up accidentally dead anyday. It's best to focus on XRP's utility value, not jealousy or envy towards folks with large numbers in some bank account or XRP wallet.
  4. I could invision "continious FX risk" being addressed with some sort of combo of WIR and Hawala methodologies. Also mulling over some kind of rolling options position (not forwards... need multi strike prices + bidirectionality puts & calls) , thinking of the underlying transactions the underlying asset.
  5. The streaming payments to multi parties in real time is an idea that is about 10 years old. I just had a conversation with a guy on Thur who was focused on this concept, but didnt know that it had a name... Fractal payments I expect smart contracts to facilitate a proliferation of fractal payment schemes in many industries. What your thinking about in the quote above has been in place for decades, it is called the WIR currency, and the Rippled code around trustlines and Rippling are structurally close to the same setup, if you run the value flows through XRP. Rippled with trustlines and rippling is essentially a digital Hawala network. Rarely is anything actually new, usually it's just new to yourself.
  6. Change "corp cash" to "digital gaming assets" and IMHO, this is exactly what xSpring just invested $100m to build out the ILSP market maker technology to do. Once you have solid ILSP tech you can reconfigure it for applications in other markets like Corp cash/credit. @JannaOneTrick very excellent post, thank you for taking the time to articulate this. I love it when folks here drop some knowledge. One quick challenge to this that I'd like to entertain (just for fun) is... what if, this whole model of handling FX is abandoned in whole or in part? So, now we can make instant payments with RippleNet, then why use all the LoC and Forward contracts? Because Time elapses between the sale/commitment to transact, and when the goods are delivered triggering the transaction settlement. Enter "Streaming payments" and imagine if the payment streams from the buyer to the seller (and to the shipping company) in real time as the goods float their way across the ocean... This does not eliminate the risk. I have a saying, "risk almost never disappears, it only changes form". So this streaming payments situation would change the FX risk's characteristic, from a "stagnant risk" with the risk only having 2 relevant points in time (tx commitment & settlement)... to a "continuous risk" meaning the FX risk exposure would ebb and flow with the spot market rates during the time the goods are in route. As you said (i added the word interest) Key point! With streaming payments it would become possible to create FX transactions with a risk exposure more related to the continuously changing spot market rates, rather than interest rates over a static time period. I dont have an answer in mind, but this arrangement would beg for an answer to the question, "how can you hedge a continuous (^e) risk?" --- I'd personally be weary making an investment bet while assuming any financial service's business model will remain substantially the same as it has been over the past few decades. Great post! Fantastic topic!
  7. I'd think fbookcoin would be looked upon in the same light as any fiat balance held at a bank... and the bank (fbook in this case) would be a potential sale for the xCurrent team at Ripple. Other than business accounts for advertising, I dont have a personal fbook account. I do understand and appreciate what it is and what they do, but for some reason their whole operation intuitively feels like it has past the point of being innovative. Honestly, fbook was not that innovative even when it was new. They are a just another follower, not a leader in the crypto world.
  8. Thank you for the link! Well then... let's see how they play it I suggested Earthport to several people as an equity investment option over the last few years. None listened
  9. This has all been so entertaining to watch. Has the bidding war ended? Did Visa win?
  10. I wonder who is the furthest along in figuring out which metrics are appropriate for analyzing the health of a blockchain, and any business models which employ one? Seems like several pieces of the puzzle are already out there as independent projects, with a few pieces still to be built, then all assembled into a set of manageable metrics. Understandable to both business managers and investment managers. I think Ripple's strategic approach will be a Harvard Business School case study till 2030. Brilliance taming the unknown.
  11. Keep in mind Liquidity Depth... The deeper the Orderbooks are, in more fiat jurisdictions, the more potential value flows can pass through XRPL. If exchanges have only a small amount of XRP on their Orderbooks, that would limit the ability of Corporations/Banks to tap public exchange's liquidity and pull back their own float, (they could have private 3rd party arrangements though)
  12. I would like to do both. Regarding investments, cut your losers, double down on your winners, and fully back your superstar(s).
  13. Just thinking about this distribution through crypto exchanges, and the thought occurred to me that there is a blending of "traditional business models" going on here. I have been expecting to see this as a trend for the next decade or so, as financial services are reengineered out of the industrial age into the information age models (distributed/p2p). Investment banks are the traditional business model for Primary Issuance of securities to the public markets/exchanges, IPOs. Exchanges (nyse/nasdaq/cboe/etc) are the traditional business model that operates the Secondary Market for those securities IPOed by the Investment banks. They typically do not do business with retail customers, rather... Retail Brokerages like Fidelity buy access to the exchanges, and sell that access to retail investors. The exchanges also do business with Market Makers, which used to be called a "Specialist" back in the human days. Anyway, what is going on here is that the "crypto exchange's" business model is preforming a mix of what traditionally would be the functions of multiple business models... Investment banks - IPOs of digital assets Exchanges - operating a secondary market Specialists - by providing liquidity to the secondary markets they facilitate Retail Brokers - doing business with the general public
  14. I dont see this any different than a bank saying, "you cant use your stock portfolio as collateral", with a slight tweak being "as a positive towards your network for purposes of loan qualification". If you want to get a loan on your stock portfolio, it is called "Margin". If you want to get a loan on your crypto portfolio, try MyCred.io , or SV Bank who I believe was the first to lend against crypto assets. I spoke to a guy from Cred, and they are not doing what I assumed they were based upon publicly available info. They are actually tied in with some of the old Paypal guys.. on the Lending side, they are supplying borrowed crypto asset float (to I think gaming companies in asia, not 100% sure) at rates of around 15%, then passing on some of that interest to those willing to lend their crypto for 8-9%. I havent looked at the details of their borrowing scheme yet, but I'm going to call the guy back and clear some things up on the Lending scheme (the stuff with their SWAP position). I'm also still a bit fuzzy as to the financial engineering of their LBA token, but I'll figure that out when I have time to look at the whole combined "Cred scheme" = borrow+lend+SWAPS+LBA token
  15. I havent publicly speculated on XRP price ever (except for a DCF analysis back in 2014). I tried to explain why I'm bullish on not just XRP, but Ripple Inc equity also. https://www.quora.com/How-did-the-VCs-value-Ripple-Labs (the bottom answer) We are all still early here, but the game started years ago. Let the fundamentals drive price, not just hype/speculation. Double digits now seems reasonable, XRP has always been undervalued... Patience
  16. As long as fundamental utility value continues to grow, via both RippleNet and the broader IoV growing in network size and corridor reach and Liquidity depth grows in all corridors, then XRP has a significant role within the whole global monetary infrastructure's new architecture. This is what I saw years ago, and it is still amazing to me. We are lucky to observe it happening. Humanity as an organism, derives a key strength from people working together. "Money" is a tool that typically emerges as a group of humans grows past a certin size. Improving this money tool, will be equivalent to humanity powering up on it's own best strength.
  17. I'm not sure about timing, but the company will be 10 years old in just 3 years. Investors typically want a liquidity event within 5-7 years, but Ripple will likely be one of the best investments of their lifetimes, so they may be willing to wait for the equity to trade on the public markets... where they can get the highest multiple and deepest liquidity. I wouldn't be surprised if they do another larger private round 6-18m months prior to an IPO. I would be very surprised if Ripple never went public, because it will be such a critical player in the world that pressure for public disclosure of the company's financials will mount as adoption grows. IMHO, Ripple (the company) will be bigger than Google in 10 years.
  18. ILP was such a strategic boss move back then, it was very ballsy and it has served Ripple's mission very well, because you cant have "an inter-net of value", without the..."inter-ledger" functionality part. ILP extinguished the "one ledger to rule them all" idea that bitcoin maxies touted. Ripple knew that the Rippled ledger tech is well better than all of the others (at the time). So with that toolkit it wasn't a mistake to build ILP and say "let the ledgers compete". Plus there will be other types of ledgers/blockchains with specialized feature sets for specific usecases.
  19. You make a good point about the unserved markets, and Ripple enabling WU to grow into these newly profitable markets. The other thing about Ripple "not saving WU much" is that WU floats their own capital (sort of like American Express, but not visa/mc). WU & AMEX could reduce their float inventory, "saving" by using less money to fund the same amount of payment flows, but to do this the float would have to come from somewhere....? Exchange trading liquidity. My guess is that when Exchange liquidity is deep enough, they and many others will test out the "savings" and grow a taste for it.
  20. For what its worth, my take on this question is... 1. The gaming industry (along with crime) is typically an early new technology adopter. I dont play games, but I've observed that gamers love novelty. 2. The business model and monetization of games has shifted from "buy a cd" to freemium model monetizing with "buy a digital good". 3. I look at each game as it's own ledger, upon which "digital goods" can exist and have value. 4. The technology that needs to be built at this point in time is the ILSP/Connector role... which is a profitable cross ledger (cross game) arbatrage business model. 5. Invest - in developing ILSP operational software in the gaming industry (because less regulation) then in a few years, redeploy that same ILSP software into specific international corridors... Profit
  21. I know a guy who has spent a good portion of his life living with the Maasai in Tanzania. He is actually the author of the athorative book, and is "go to guy" globally for anything Maasai. I haven't run this idea by him yet, but I was thinking about the Gates foundation 's Mojoloop and ILP... and wondering if this whole "internet of value" enabling value to flow freely, may help erode the colonial/govt/currency boarders on the African continent, thereby reestablishing economic flows back towards the older tribal communities/economies.
  22. This is based on the concept of faster inventory turn over cycles. This is actually an advantage for RIppleNet Market Makers and Liquidity Providers because it means they can service more value flow with less float/inventory. As the article did, this can be construed to put a ceiling on valuation, but remember the cost per transaction already down to $0.00 via ILP and Payment Channels. Well, I guess the cost would be the the cost of carry for the value held in the paychan, but the transactional cost is essentially zero. The inverse of the article's argument would be that "Bitcoin should be more expensive because it is slower". Which is like bragging about being worse off, or not as good, or requiring more floated value/inventory to get the job done. The article is based on a real aspect of XRP/XRPL, but it is misguided in it's interpretation of this aspect as a determent, rather it is a competitive advantage. Why would market makers (wallstreet & institutional traders) choose a crypto/network/ledger that requires them to float more inventory at risk... because it is slow? That is just silly.
  23. https://www.sec.gov/files/dlt-framework.pdf 13 pages. I hope this is comprehensive enough. Would be great if it lined up with other international regulators.
  24. Maybe I'm wrong, but it smells like Coinbase has been "brought to heel".
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