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XRP Price Concept: Priced-for-liquidity
jetbrzzz posted a topic in XRP Trading and Price Speculation
I haven't heard the term before so I'm coining it here: Priced-for-liquidity. At the heart of it, the pool of XRP that exists is meant to be a translation mechanism, not unlike a driveshaft translating the energy from an engine to the wheels of a car. Let's use the popular FX number of $5 trillion/day and take the most simplistic example possible: group A wants to transfer $5,000,000,000,000 to group B through XRP (100,000,000,000 supply). At today's price of $0.27, $5 trillion buys ~18,518,518,518,518 XRP, which would then be translated to group B, say, into yen or whatever. Obviously this is impossible because there's only 100 billion XRP in existence. Another way of saying that is there would need to be 18 trillion XRP to provide enough liquidity for that 1 transaction if XRP was priced at $0.27. Now let's say we wanted 100% of liquidity locked up: $5,000,000,000,000 / 100,000,000,000 XRP = 50, so $50 per XRP. In other words, the price of XRP is directly tied to its demand for liquidity. If you needed no remaining XRP in the pool (100% of liquidity), then you could price it at $50 to complete this 1 transaction. Also, as the total amounts of value that need to be transferred goes up, so does XRP and as it goes down, so will XRP. One step further let's say we wanted only 20% of liquidity locked up on that same transaction; we can't be greedy and need to save some XRP for other industries who might also be using XRP, hedge and trust funds holding XRP as an asset, retail HODLers and stakers if that becomes a thing, etc, etc. Now we have $5,000,000,000,000 / 20,000,000,000 (20 bill.= 20% of 100 bill.) = $250/XRP to complete that 1 transaction while leaving 80% of the remaining XRP supply for others to use. So the price of XRP will be reflected somewhere along this moving spectrum of demand for liquidity. I can't say where/when/what those percentages are as it will change up or down relative to its use but this is how I understand the functional pricing of XRP. This might be obvious to veterans of the XRP space, but for newbs it's a good primer. XRP really isn't meant to be a currency per say as many assume and I think a lot gets misunderstood when you call it a "cryptocurrency"; "digital translation asset" is more apt. Not to say it's not going to be valuable, but not for the reasons people think and more because it has to be priced in for liquidity to function correctly as an intermediary of value translation. TLDR; The driveshaft of a semi-truck is larger than a Honda Fit's. -
Hi. Recently I started learning about XRP ledger and reading the documentation I found this line from the Default Paths section: I'd like to someone explain me the reason behind this statement. I guess that if a gateway A (an issuer) wants to get access to the on demand liquidity that other gateways (supposing they allow ripple) could provide, there are two options to accomplish that. Create trust lines directly to those gateways. Wait until an account create trust lines (maybe indirectly through an offer) with those gateways and with gateway A. It seems to me options 2 is out of gateways A control since it cannot force other accounts (I'm thinking about customers from the gateway A perspective) to create trust lines with other gateways and the better they can do is provide a sort of list of gateways for the accounts to choose from, but it'll be a more complex and extra step process. Also if the account decide to (or have) disable ripple, you won't get access to the other gateway on demand liquidity right? Maybe there are more ways to get access to other market on demand liquidity and I'm not seen it? -
From the fed announcement yesterday, she said: “The Federal Reserve provided a joint account to enable the private-sector operator to offer real-time payments. Moreover, today we are announcing our intent to explore the expansion of Fedwire Funds Service and National Settlement Service operating hours to support the efficiency of the joint account structure for the private-sector real-time gross settlement (RTGS) service and provide broader benefits. That said, the joint account structure, with its requirement of prefunding and settlement on a private ledger, is fundamentally different from the approach the Federal Reserve will use to settle transactions directly between banks.” Fednow is planing to provide the liquidity for the public with “joint account” but strangely, the joint account doesn’t need prefunding like a normal account. She said the structure of the “joint account” Fednow will use is fundamentally different. I think the term “ joint account” is deceiving us. I think the “joint account”actually could be Xpool, the joint of liquidity of market makers. What do you guys think the secret of the joint account that don't need prefunding and allow instant direct settlement between banks? Share your thoughts
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Late this afternoon, the CEO of SBI, Yoshitaka Kitao, tweets out an article that confirms SBI Virtual Currencies will officially go live in March 2019 as an orderbook exchange..... https://thexrpdaily.com/index.php/2019/02/05/sbi-virtual-currencies-officially-going-live-in-march/?fbclid=IwAR0H_I0wObEZspdV9o9-7t1_rvFwI3ts9sGMUv219YiiuH19gbIHFcNSx2E
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Hello all, been on here a while but finally made an account and first post Just saw this: https://www.coindesk.com/binance-reveals-plan-to-launch-crypto-exchanges-on-almost-every-continent/ Very interesting considering this is a month after the meeting between Binance and Ripple in August. Could this be Binance providing new global XRP corridors. Thoughts?
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I've been wondering about this question regarding big players, institutions and such.. Can custody solutions somehow be integrated with markets? What I mean is, when it is not secure to keep huge stacks of xrp on the exchanges, what happens to liquidity? Can somebody have their assets safe at the same time as having them on the market? (Thinking about xRapid here). Sure my zerps can't be both on the nano s and exchange x simultaneously, but how about custody and other large scale stuff?
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XRP is the undisputed best choice for ????-???? ?????????. In today's blog, I discuss the reasons behind Ripple targeting the non-banking market, as well as what it means for their long term strategy. Then, I connect the dots for you and show one possible outcome in a ???????? ???????? stretching to 2021. The blog covers exactly what Xpring and Coil mean for XRP owners, and what to expect in terms of additional liquidity and when we *might* see utility-driven demand take over the network. Let me know what you think: Please leave any feedback below. Feel free to share my blog with a friend - or on any other platform; and thank you for doing so! Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
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In today's blog, the retrospective of XRP and Ripple finishes with a closer look at our prior year, 2017. We've come a long way, and 2017 demonstrates that in spades. This blog will cover key code updates for XRP, the controv ersial topic of anonymous payments, community promotions, and XRP's own version of the "Bitcoin Pizza Guy," which is known more as the "XRP Jacket Guy." (He knows who he is!) And for those of you that are new, I wax nostalgic about the old RippleTrade wallet - something only fellow XRP veterans will appreciate. No retelling of 2017 for Ripple and XRP would be complete without discussing SWELL and the Central Bank Summit on Blockchain hosted by Ripple. I hope you enjoy the read - please leave any feedback below! Feel free to share my blog with a friend or on any other platform - and thank you for doing so! Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
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It is known that switching between xCurrent and xRapid is very easy. FIs are also interested in using xRapid instead of using xCurrent, but AFAIK the only problem (or the biggest problem) is the insufficient liquidity of XRP. My question is why don't they (FIs) think in small at first? I mean why don't they start using xRapid let's say at every 10000th transaction and in the other 9999 transactions can be run using xCurrent. This process might help to increase liquidity and frequency of using xRapid transaction could be increased while xRapid was fully adopted. What's wrong with this approach? I think if this process solved liquidity problem FIs would have already used this.
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So, I have been reading up on a few Alt-coins and one in particular sparked my interest: Dent wireless. Basically, without getting into the weeds, it allows for the sale and purchase of cellular data worldwide. Apparently they have also cut deals with some major telecoms. I have not used their app personally but some people online claim it works. That being said, the more I thought about it, the more I realized that the platform, if it ever gained steam, could be a potentially powerful pathway for small remittances, possibly better even than Ripple (at least in theory). The benefit of a crypto tied to a commodity (cell data) that so many people have, need, and use, is that the system has built in liquidity. Not only that, but it is distributed liquidity, which means no need for large scale market makers. Here is an example: I live in Hong Kong and want to send money to my cousin in Manila. I can simply sell extra data from my phone in exchange for dent, or simply buy data at any bodega, upload it, and trade for Dent. I can then send the dent to my cousin instantly. He can then trade the dent for local data and in turn resell that, to a shop owner for example. While this scenario requires at least a number of people using the app in each country, the barriers to entry are extremely low, much lower than being a market-maker in XRP or BTC. I say this because any bodega or shop owner can act as a market maker if they can sell data. Because the app allows instant transfer, almost anyone in the country could act as a market maker if they wish to. I may be missing something in the details here so please feel free to weigh in. -
Hi all, I'm a ripple holder looking for some clearer insight...but the more I research the more i wonder about the decline of the future xrp price. I'm newish to crypto but have traded most asset classes over time. My primary concern is this ...and I'm hoping that I'll get a flood of "no your logic is wrong" or "it doesnt work like that" ...anyway we shall see... but my thinking is .... assuming the huge liquidity that the current circulating supply offers..and also assuming the transaction speed of ripple...surely there will always be ample xrp in the pot to facilitate the fiatA-xrp-fiatB process. So why would the xrp token be in demand if there is always enough in the pot that no one needs to hold xrp themselves. Ps I hope my logic is wrong and xrp price sees huge growth. Please help me understand if my above point is a factor or if I'm way off. Thanks in advance.
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I heard mentioned here that xcurrent liquidity will help xrapid liquidity. I dont see how that could work. Can someone explain? For example, the liquidity needed for xcurrent is in the following currency pair markets: "[BANK_A_USD_IOU]<->[BANK_B_USD_IOU]", "[BANK_A_EUR_IOU]<->[BANK_B_EUR_IOU]" Similarly, the liquidity needed for xrapid is in the following currency pair markets: "[BANK_A_USD_IOU]<->[XRP]", "[BANK_B_USD_IOU]<->[XRP]", "[BANK_A_EUR_IOU]<->[XRP]", "[BANK_B_EUR_IOU]<->[XRP]" So the liquidity that xcurrent and xraid uses are in completely different (currency pair) markets. One leg of the currency pair markets are the same in both xrapid and xcurrent (say BANK_A_USD_IOU), but I dont see how that makes a difference
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The momentum behind XRP and Ripple has quickly built into the size of a freight train. I make a good-faith attempt to cover all the news items of the last seven days, including The AMA (Ask Me Anything) session that David Schwartz held on Reddit. The other news items are extensive as well, including updates to xRapid customers, general Ripple technology adoption, and community updates. In addition, throw in two interviews with Ripple executives and you have a very busy week indeed. Hope you enjoy the read - please leave any feedback below. Also, feel free to share my blog with a friend or family member, or share it on any other forum or platform - and thank you for doing so! Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread- 54 replies
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Exactly 1mil volume each 30 minutes. Could this be someone sourcing liquidity using xRapid?
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Speculation is welcome? Anybidea who the Xrapid liquidity partners will be. Say if the transaction is run on the public Blockchain I would think the current exchanges will be signed or plugged into ripplenet thru Xrapid. If I remember correctly Ripple said that the transaction on Xrapid can also be on the public markets. Will we ever know who the partners are. Or we will see the volume increase on exchanges and the transaction volume increase on the ripple net to speculate. Although I might be shooting the stars here or thinking out loud. -
Every once in a while, it's good for crypto investors to take stock of their investments and where they're at in terms of liquidity and adoption. Today is that day, and I'm taking a look at the same numbers that we discussed just three months ago. Headlines: Liquidity is massive. The number of wallets doubled. To find out more, you'll have to read for yourself! Hope you enjoy the read & please let me know what you think; feel free to share my blog with others or on any other media or platform, and thank you for doing so! Blog announcements on other media: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
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It goes something like "we focus on getting one corridor, then we hang the other corridors off each end" or something like that. Some background: This article: https://seekingalpha.com/article/4137721-ripple-tokens-worthless?v=1516118003&comments=show appeared up on Seeking Alpha this morning ( a very popular resource for financial news). Having engaged with the author, it appears he was not trying to spread FUD but merely misinformed. I'm trying to explain how Ripple is trying to build XRP liquidity such that FX risk is not an issue for market makers but I don't want to misstate anything. Thanks for your help. -
Now is a good time to remember XRP is a long term (high risk) investment, and the price a month, 2 weeks ago, yesterday and today are all reflecting substantially the same "investment." The biggest difference is the liquidity of XRP. If there is one thing that is going to make Ripple's plans for XRP come true, it's the liquidity. The nice thing is it makes it simple for anyone with even limited knowledge to follow closely but just going to the Ripple site, and looking at XRP markets. Ripple puts this right on their main website page. So right now, XRP is looking better then ever, it's been massively improved. Not only that, it has given Ripple a giant warchest to grease the wheels -- making it even more likely that they can pull this off. It's not going to matter what any one country decides to do over the short term. Trying to guess at any of these micro events will drive anyone crazy-- because there just isn't any way to "figure it out." Same with day trading. If anyone wants to do themselves a favor-- instead of poking at the exchanges and looking for a price, go look around at liquidity including volume, different pairings, exchange listings etc... When there is positive movement in these areas, a better price will come no matter what these short term blips look like. One great advantage of these swings is it gives people who have missed the boat so far the opportunity to into the party. I hope this helps people calm a bit. '
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Something I'm still not understanding is the need for XRP to be high in price before being used by banks. Why is it cheaper for banks to use XRP for cross-border remittances when the price of each XRP is $100 vs $3? I know it has something to do with liquidity, but I'm not understanding it. Also, what do you think the approximate Minimum Price of XRP should be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances? Lastly, how Stable does XRP have to be for, let's say, 50% or more of banks using the Ripple platform to WANT to use XRP for remittances? I assume the price of XRP shouldn't fluctuate more than +/- 3% per day for banks to feel comfortable substituting XRP for their current nostro/vostro accounts. Please enlighten me. Thanks!
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XRP is on the move. What is the result of our latest liquidity increases, and what's in store with Ripple's latest hire in the communications position? I cover it all, and indicate the trajectory of our rocket ship as we clear the atmosphere. And of course, I haven't forgotten about the "two household names" hinted at last week. Please feel free to leave any feedback below. Also, feel free to share or link to my blog on any other media (e.g., FB ) My blog announcements on other media: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
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https://www.sbivc.co.jp/adv/ In Japanese, translation here: In SBI virtual currency, we aim to offer services that maximize the possibilities of virtual currency to everyone with the motto "Stress-free virtual currency transaction" and "Virtual currency transactions smarter". SBI Virtual Currency is accepting advance reservations for opening accounts when starting services. For customers who have pre-ordered, we will inform you of the start of service to the registered e-mail address. ※ For procedures to open an account, please be reminded that the customer will take another procedure from the customer after starting the service. ※ Early reservation will be closed at 11:30 (Thurs) 15 o'clock. It looks as though they are going to stop advanced registration on the 30th, going live then maybe?
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If a pair like USD/CHF is currently considered illiquid, and no bank/Hedge fund/HFT Firm/etc has been successful in making it liquid, then what makes people think that Ripple can somehow make XRP/CHF liquid (or for that matter, any other currently illiquid pair)? Said another way, if it were possible to create sustainable liquidity while maintaining profitability, wouldnt it already have been done by banks/hedgefunds/HFT/quant firms? -
The latest blog entry has me explaining XRP's cost savings use case, and the reasons why banks and other institutions are adopting XRP. I discuss liquidity, regulation, and even XRP's competitors. Hope you enjoy the read! Please leave any feedback below. As always, please feel free to share my blog on any other platform or media, and thank you for doing so! My blog announcements on other media: Twitter Reddit r/Ripple Reddit r/xrp Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/RippleTalk Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
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This is a question for the Ripple team. Most likely, @miguel. However, maybe @JoelKatz could provide some information as well. One of the huge takeaways from SWELL is that XRP liquidity needs to be grown before we can start to (hopefully) see widespread usage of XRP by financial institutions/payment processors. The goal of this post is to understand just how much liquidity is needed before FIs can start using XRP on a consistent basis. Let's use the US Dollar and the Peso as an example (USD/MXN). Also assume we are talking about remittance. There are two components to this remittance transaction that uses XRP as the bridge: 1. USD/XRP 2. XRP/MXN Additionally, please keep in mind that their needs to be enough liquidity to be able to handle peak transaction times (for example, Friday afternoon after lots of people receive a paycheck). As a result, deep XRP liquidity is needed on both ends (USD/XRP as well as XRP/MXN) in order to process all these transactions. So the question is, just how deep are we talking about? Let's use USD/XRP to keep things simple. Two questions: 1. If the USD/XRP pair is trading $.20, then just how much liquidity is needed on the offer (let's just assume "best offer" for now)? If it's a $1000 transaction, then we are looking at 5,000 XRP at the best offer for that single transaction. However, if transactions are coming in every 10 seconds, then this number needs to be greater. So how much XRP is really needed? 200,000? 500,000? 1,000,000? 2. How deep does the liquidity need to be? Using the example above, what if the "best offer" is only 50,000 but there's consistently 500,000 total XRP offered across an entire penny (so .20 to .21)? If this is the case, would this be sufficient? So to sum it up: (1) What is the ideal amount of XRP that needs to be offered for the USD/XRP pair and (2) across what price range? I know there isn't a specific answer and their a lot more variables I didnt address, Im just looking for a ballpark understanding of what Ripple as well as financial institutions would consider "liquid." Thanks for everyone's time.
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