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Mpolnet

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About Mpolnet

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  • Gender
    Male
  • Interests
    XRP, Crypto Assets, DLT, Finance & Real Estate
  • Location
    United States
  • Occupation
    Analyst

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  1. Interesting comments from David Schwartz regarding yesterday's article from Ripple hopefully providing further clarity. Per the comments, my take is that ODL volume has primarily been comprised of treasury payments and from there the company in charge of those treasury payments sends/allocates the payouts as necessary. The main pitch of using XRP is high throughput low fees thereby making smaller payments not only cost efficient but feasible to execute (EX: sending $5 when the wire fee is $5+ - no one will take on this type of transaction). Ripple's article provided no mention that larger payments would be ignored nor did it state that large payments will never be processed through XRPL via XRP. The article highlight a new focus on the primary use case - high payment volume comprised of small $ payments. Per comment #2 below, it seems that this original use case (small payments w/ high volume) may have not been clearly proven out. Given this, Ripple may be taking a step back (who knows what the exact drivers of this business decision were) in order to prove out the use case. Most large companies won't approve investment decisions or approve internal changes to company processes without clear data points. This isn't a shift in their use case it's a refocusing effort on the primary use case to prove it out. In the long run this may attract more new clients to take advantage of a proven out use case that can add value to a business. Think uber drivers sending money from their uber account to their bank account after each ride - the current payment infrastructure doesn't allow this however, if ripple can prove their ability to make these transactions feasible and gain a % of that business then it could translate to high ODL volume. Take it as you may - just my two cents. Constructive commentary welcome as always. EDIT: Key piece of the original article from Ripple below. Sounds to me like they want to focus on more XRP use (not less) via low-value high frequency payments rather than XRP being used to move large funds from a treasury account in the US to the same companies treasury account in Mexico, which may happen less frequently. The silver lining here is that based on the ODL volume we've seen tracked by the likes of @jbjnr we can say that XRP does in fact work for Treasury type transfers and millions of dollars (USD, PHP, MXN, and AUD) have already been processed via this subset of the overall payments use case. Whether or not it's currently that much more efficient is another question and could be why Ripple is focusing on low value high frequency payments as a way to garner more liquidity such that Treasury payments becomes more efficient.
  2. @TplusZero - hoping you can provide more in depth analysis than the clever comment above
  3. This is an incredible analysis - thanks for sharing! Can you please elaborate what the % next to XRP, per the below, refer to?
  4. @Molten - looking at BTC in the $3k - $4k range. Would make my first BTC purchase ever lol but assuming PlanB’s Stock to Flow model holds up price should recover to $9k - $10k range. However, not sure how the liquidity crunch has been affecting prices aside from some liquidations on leveraged positions. Hopefully, this period marks the inflow of new capital into the space that may have been on the sidelines given where prices are. I’ve been using Bitrue to stake certain assets in their Power Piggy platform and have been reinvesting the earned interest into other tokens to build positions since they have a lot of trading pairs. VET has been great on the platform given its higher base interest rate (meaning no Bitrue token ownership is needed to get a higher interest rate). They also pay out accrued VTHO and have a BTC/VTHO trading pair helping increase earned interest. Note, I stake a certain % of total assets owned for this strategy in case anything happens to the exchange. Disclaimer: do your own research before using a new platform EDIT: I could see certain teams increasing token buybacks at these low prices but that’s just me speculating.
  5. This is incredible! Would love it if you have time and are able to post this chart with weekly updates?
  6. Thanks @JASCoder! To confirm the above analysis, an arbitrage opportunity exists for market makers based on current XRP prices at Bitso? Does this indicate prices need to rise or decline in order for the arbitrage opportunity to go away? Or does this imply that market makers are more likely to buy XRP at current prices and profit from the current arbitrage opportunity? If it's the latter, what is the effect on XRP's price?
  7. I'm fairly sure AK Bank is a Ripple partner. Assuming this is the case then this article is pretty interesting. Maybe Binance is exploring the potential of becoming an ODL partner (even thought they've been pretty quiet about this when asked directly)? Turkish Lira a future ODL corridor? https://cryptobriefing.com/binance-adds-turkish-lira-onramp-through-akbank-partnership/
  8. Really solid video in my opinion. Definitely a bit rushed and I love David for his intellect and passion. Not sure how technical the audience was (I hope they were predominately computer scientist) because man was this convo high level on a lot of technical aspects. I do agree with his view that the initial promise of blockchain was to eliminate rent seekers so if that's the promise of this new technology it's hard to argue against no incentives and how incentives introduce friction. However, arguing for incentives is also understandable so it's definitely a worthwhile topic of discussion. Definitely recommend watching!
  9. This explains the $8.9MM funding from Ripple to Moneygram in Q4 being treated as a contra expense! While there's been no clear regulatory guidance at least it's encouraging to see the SEC's understanding of properly treating incentives in order to build out a modern day digital payments network.
  10. It's treated this way because the $8.9MM given to MGI was for the offset of operational cost associated with the funds received hence a contra expense. It actually doesn't lower taxable income since it's a wash. However, what it does is provide an incentive to grow the system since this $8.9MM was likely associated with slippage, thus an offset of expenses rather than revenue. The system needs to grow in order to achieve operational economies of scale, which is typically where cost savings are realized. Helping mitigate the expenses associated with growing the system should be viewed as a positive not a negative. Please check out this twitter thread courtesy of @Chris_Reeves https://twitter.com/MrReeves87/with_replies
  11. This! @Chris_Reeves I saw you had a twitter post related to this. I'm assuming the classification is relevant given how it affects the taxable income but was hoping you could confirm/provide broader insight into your thoughts? EDIT: Assuming a lower taxable income is the end result, this would actually increase the amount of capital that could be deployed in other areas, which otherwise would have been a tax hit.
  12. Great feedback! Thank you also @Mitty for keeping this thread up to date. I've yet to actually use Cred but I do hold LBA . I use Bitrue for interest earning purposes which I then allocate into other coins. They just released the ability to stake BTR to earn a higher rate so effectively doing the same as Cred with the LBA token.
  13. Better than having been invested and selling before it broke $0.25! But hey that's just the nature of investing - can't get caught up on the past and miss out on future opportunities.
  14. Can't wait for the days when we're processing $100MM on a weekly basis. Hopefully that level of utility/demand will help establish a floor for the price but who knows. Could very well play out that as ODL volume increase so does trading volume such that the current ratio of trading volume to utility volume stays the same. But you would think this scenario would also have a positive impact on price given the fixed supply.
  15. Not sure if anyone has seen this or if it's been posted in the forum but WOW what an incredible interview by one of the Bitso founders. Extremely insightful and bullish on the future growth of ODL, specifically in the Mexican and Latin America corridors. Thanks to @BANKXRP for uploading this to his YouTube account. Wish there was a way we could get more traffic flowing to his YouTube page and educate the public!
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