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thekiyote

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  1. Yeah, as much as I want it to happen, I doubt it will. I do think it's coming, but every token they released in this batch has been an ethereum-based token with a fairly small market cap, which are probably easier to implement. With the size of the XRP community, I can see them releasing other non-ethereum based currencies first, before braving the rush. What could make me eat my words is if Coinbase decides to make XRP an example of listening to the larger crypto community, and earn back some goodwill from a bad track record of that.
  2. You can even make it less of a conspiracy than that: you've made a statement that you're going to list small market cap coins, but now you're getting thousands of requests, a good percentage of which are scams. Which ones do you list first? Well, the ones recommended by people you've had a good working relationship with in the past. I don't understand Coinbase's hatred of XRP. But when you're talking about listing small cap cryptos, this isn't that outlandish.
  3. The stock market is predictable over the long haul, at around 7% per year. Yeah, if you put a $100k in this week, it could crash next week and take a decade to recover, like it did after the first tech stock boom, but if you invest a small amount per pay period, your cost basis will even out over the long haul. Generally, though, the younger you are, the higher your risk tolerance is. If you're in your early 20s, you can potentially say screw it to your 401(k), and go after a more risky investment, like cryptos or founding a tech startup, because even if it doesn't go anywhere, you have more time to recover, and the rewards are huge if you're a success. However, as you get into your 30s-40s (and up), you have less recovery time, so a lot of people become more conservative, and only invest in the high risk stuff after they have a strong footing in traditional investments. Not everyone is like that, though. Personality plays a lot into it, as well.
  4. There could be a coincidence of needs, but I doubt that both the buyers are sellers are acting completely independent of the public exchange information. And everything is managed by the brokerage firm. From everything I've seen, if you don't have the coincidence of needs, the OTC firm acts as a money maker, in order to guarantee a quick sale. Look at it this way, if I go to an OTC firm, looking to buy $1 million of XRP, I might be willing to pay up to around $0.50 per XRP, or about a 5% premium. Maybe $0.55-0.60, if the FOMO is hitting really hard. But if somebody starts quoting me $3 per XRP, I'm not going to accept that price. People's buying habits just aren't that elastic.
  5. Yeah, but you're still describing a risk tolerance scenario. A lot of people (probably most) wouldn't risk 6 million in order to potentially gain 50 million, but some would. But a higher risk tolerance isn't stupid, making bets without being aware of the risks is. When you see people who say "If I make $X dollars, I'll sell Y%, to lock in my gains," they all think that they have the 'right' answer, but there are just as many opinions on what X and Y should be as there are investors, all bickering over the values. The reason why nobody can agree is because the moving variable is everyone's risk tolerance. People with higher risk tolerances are willing to risk more for a lower rate of return, and that's fine, as long as the person is willing to accept a failure scenario. Where people get stupid is when they start saying things like XRP's success is a given. Really, no it's not. Ripple is very well run, and there is a clear market case, all of which makes XRP a much safer investment than most other cryptos out there, but the space is still risky, and if you invest without acknowledging that risk, and measuring it up against your own personal risk tolerance, that's when you are making a mistake.
  6. This is a special case. Because the founders of Ripple gifted themselves a bunch of XRP at the creation of the ledger, they signed a contract with Ripple to prevent dumping it and crashing the market. Jed got in trouble and sued because he tried to circumvent that contract. Likewise, similar contracts exist for OTC sales ripple does when institutionally selling XRP. If a whale tried to dump their billions of XRP they got on an exchange, ripple couldn't do anything about it, because they don't have any relationship with that person. If merely holding the cryptocurrency created that relationship, then it would be a security.
  7. OTC prices are set to market prices, plus a premium. Market makers charge these premiums because they take on additional risks, and it's how they make money. People looking to buy/sell a lot accept that premium, because they know that they're limited to how quickly they can sell via exchanges, by either withdraw caps or potentially crashing exchange prices. OTC firms are not hiding prices. What they're doing is hiding trade volume. If volume is large, but equal through buyers and sellers, market makers really don't need to go onto exchanges to buy and sell their cryptos to restock. Remember, they're making money from every client. However, if the trades start slanting heavily one way or another, the market makers need to go onto the exchanges to restock, either cryptos for buyers, or cash for sellers.
  8. I'd counterpoint by saying that portfolio balancing is not a money gaining strategy, it's a risk mitigation one. If you engage in risky investments, you are going to quickly become unbalanced. Whether or not that's a bad thing depends on a lot of other factors that play into your risk tolerance. If that $6.2 million is all the money you have to live on for the foreseeable future, I agree. It's super foolish to keep that high of a balance of XRP. You'd want to sell the majority of it, and balance the remainder between stocks and bonds, to guarantee money to live off of. However, if you're in your mid-20s, you got no debt, with a good job who's pulling in 6 figures per year, that $200k represents your retirement savings that you put your money into every paycheck, and you have no intention of quitting your job, maybe you let that $6 million ride. Neither of these choices is wrong, it just represents two very different risk tolerance scenarios.
  9. Heh, I just brought this up in the XRP millionaire thread. People kept talking about their exchange strategies when they hit it big, but that's the point of OTC companies. Big buyer/sellers want to be able to make trades without either driving the price against them while in the middle of their trades. Also, it allows you to move money out quicker than what is allowed by most exchanges. Flip side of that is that exchange volume is probably the smaller of the two volumes, with OTC volumes being largely hidden.
  10. To follow up on this, I feel like a lot of the diversification strategies that people bring up were created for the stock market. There it makes sense, where you are protecting yourself for moderate increases or decreases. I don't think it applies quite as well to high risk, highly variable assets, where success/failure isn't measured by a swings of 5-10%, but by swings of 80%, and more, and where failures amount to $0, and wins through the moon. In those situations, you're probably better thinking in terms of bankrolls, or your initial cash outlay, and cashing out not to diversify, but if you feel like your returns are maxed out. Also, people keep talking about how they would cash out on like 20 different exchanges in the case of a runaway success. While that isn't a bad option for withdraws up to maybe $100-$200k, anything larger, you'd probably want to work through an OTC firm, like Cumberland or Circle. You run a much smaller risk of crashing out the market and hurting your returns.
  11. I'll show my cards: During the height of the pump, I was at around $250k, all of my XRP bought throughout the previous nine months, with a cost basis of around $0.23/XRP. That amount of money would have been enough to pay off my mortgage, with a very healthy percentage left over. I didn't sell any of it. Prior to the pump, I developed an exit strategy. I figured that that with just the single use case of remittances, significant progress from Ripple would lead to a minimum XRP value of around $44, while a resounding success would be above $100. There's also a very good chance that it will never reach that. Also, I have a good job, a really low interest rate on my mortgage, am fully funding my 401k, am still pretty young, and am generally doing all right. So I decided to apply angel investing logic to this investment, all prior to the pump. I know that there is a likely chance of me losing most of my money, but I'm betting on things that have a massive return that can pay back all the failures. If it ends up that XRP doesn't go anywhere, I haven't over-extended myself, so I can invest in the next thing with a potential huge return, until one finally hits. (Though, I do have an exit strategy for if it looks like Ripple starts ******** the bed, which they don't look like they will do, but it's good to be prepared). I will say, though, actually holding to this strategy was a much much worse feeling during the pump than the lags in the market, either before or after it. The chance to cash out loomed over my head, but I knew my strategy was sound.
  12. Alright, let's get some things clear: The IRS treats virtual currencies as property, so is reported as capital assets, and does not have an as-like clause. All exchanges of virtual currency count as taxable events. This includes XRP to Fiat, XRP to BTC, or XRP for some other good or service You can deduct any amount of capital losses against losses of the same type (short term gains/losses, long term gains losses), but can only deduct up to $3,000 of a loss against the other type The IRS has a wash rule, which means you have to wait 31 days before buying the same security if you want to claim a capital loss. You can circumvent this by buying a similar (but not exactly the same) security, like ETH or BTC instead of XRP. Losses from wash sales (XRP sold then XRP bought again, within 61 days) are deferred until the new XRP is sold So, in your example, the IRS would say you would be able to report a capital loss of $2,700. That's the $3,250 loss you had, minus the 1000 XRP ($550) that's exempted due to the wash. When you eventually sell, you could deduct that $550 capital loss then. If you didn't purchase that XRP again, you would be able to report $3,000 (the max allowed by the IRS) from other income on your tax return.
  13. I can answer this: it's because businesses that are putting an emphasis on growth hemorrhage money. This isn't a bad thing. In fact, it's expected. In order to grow, you need sales teams, additional developers, top leadership, and, in the case of banks, frequently local offices to do business out of. All of these cost money that doesn't directly see a return until you hit the terms of your contract. Even after you get new contracts, unlike individual purchases, companies typically don't pay for big projects up front, so the gap between signing a new client and getting paid can be significant. There are two ways you can fund growth: Leanly, by slowly funding growth through the revenue you're actually receiving, or rapidly, by finding outside investment through banks, which needs to be paid back, or financing, which exchanges ownership of the company for cash, and running your company at a loss. In the industry, the time left before the company runs out of money, and either needs to start a new round of funding, or close their doors, is called "The Runway". VC firms, and entrepreneurs, like the rapid approach because while it typically doubles the risk, it can make the potential returns go up more than 100x, as the startup snatches business from the competition and gains a greater market share. However, Ripple has a third method of raising money, and that's through XRP sales, which is like Ripple closing a $80 million funding round, every month, and losing now ownership options for this. Previous VCs and owners LOVE this. However, do it too much, and you put the whole XRP ecosystem at risk, which risks the company. My guess is that the $80 million number is the one the company and its investors came to an agreement on.
  14. You had a one day slap on the wrist for insulting people. The ban is already over.
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