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Potential XRP risks as outlined by Joel Katz


jennif
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Always appreciate Joel's honesty but reading all that "you never know" makes me a bit doubtful about Ripple. I don't know for sure, but it sounds like he clearly knows Ripple isn't anywhere close to getting banks interested in XRP. Maybe the cost savings isn't much, maybe it's actually more expensive to hold XRP, maybe banks are perfectly fine with just using Ripple software...maybe I should put more in NEO instead since Chinese stocks have served me well in the past. Maybe...

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From JoelKatz:

I'll tell you what I think the biggest risks are:

  • Someone else does almost exactly the same thing Ripple does, but does it better. This is mitigated by the fact that Ripple has such talented people and has a lead. But you never know.
  • Unfavorable regulatory changes make Ripple's business model impractical. Perhaps some regulators deem XRP to be a security and therefore only salable to sophisticated investors or something like that. This is mitigated by the fact that Ripple can target friendlier jurisdictions, but losing big ones would be damaging.
  • Some serious technical problem is found in the XRP ledger system and neither Ripple or anyone else is able to fix it. This seems unlikely to me, but again, you never know.
  • Some horrible personal or business scandal affects key Ripple people such as Chris Larsen or Brad Garlinghouse or the company itself and the company becomes too toxic for FIs to do business with. Again, I don't think this is likely, but you never know.
  • Someone comes up with a better way to bridge international payments than using a digital asset and Ripple is unable to position XRP for another use case and abandons XRP. I don't know of any better way, but as with the others, you never know.

Source: XRP Will Go to 0 Because...

 

Edited by zone
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There are no guarantees in life neither is there anything risk free. Well at least, nothing worth it, is risk free. You should also not expect people to cater to your opinions or desires, to close on a decision. 

Not that you don't have valid concerns, just that the answers are not hidden in the nuances in text written by this or that Ripple employee, director etc. 

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Hmm, David Schwartz has been a top contributor as an insider and would not put his name to shame with so much pented up hodl followers.  His 'who knows' statements are wholeheartedly true since no one can actually predict the future ... Think Ripple and their XRP token has a bright future for local and cross border bank payments but you can never be 100% certain ... 

Twenty years ago, did you think that Apple was gonna make a comeback and be the top laptop and mobile provider?  Not even ten years ago, no one would have predicted that Apple would be one of the most valuable companies in the world.  How about Amazon from online book sales to global marketplace and hypermarkets?  How about the school teacher leading Alibaba's throne?

You'll never know BUT our XRP token may be worth even more than Bitcoin one day ... who knows?

 

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This kind of openness about potential risks has indeed its value, but I think it is completely unnecessary and once again will be abused to spread more FUD among the masses. The risks or threats JK mentions here, are just as well applicable to any sort of venture or investment, not just Ripple. Anyone can have a competitor emerge with a better solution, be bogged down with regulation, face technical issues of any kind, have a senior figure go off the rails or with some skeletons in the closet (Hollywood, anyone?), and so on.

All of these threats are purely hypothetical and are not singular to Ripple. It's just the THREATS part of a SWOT analysis and that should never be taken out of context, because it skews the picture towards the negative. SWOT only makes sense only as a whole. In fact, I think if someone did a proper SWOT analysis of Ripple, it would be heavily skewed towards the STRENGTHS and OPPORTUNITIES side. 

Nice of someone as senior as JK to acknowledge that Ripple is not infallible and there are potential pitfalls but I say again it is unnecessary to list these as something that can happen overnight, as they are all very unlikely occurrences and Ripple has more than enough STRENGTHS in their repertoire to deal with any of them in due course. Also, if this is really all, I mean if there are no other serious threats or risks, we are home free. We can already start celebrating the success of Ripple and XRP.

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1 hour ago, zone said:

Always appreciate Joel's honesty but reading all that "you never know" makes me a bit doubtful about Ripple. I don't know for sure, but it sounds like he clearly knows Ripple isn't anywhere close to getting banks interested in XRP. Maybe the cost savings isn't much, maybe it's actually more expensive to hold XRP, maybe banks are perfectly fine with just using Ripple software...maybe I should put more in NEO instead since Chinese stocks have served me well in the past. Maybe...

 

Good mate, buy Neo.  There are other risks joel katz forgot to mention such as earthquake, iceage , meteor crash, doomsday due to nuke war, another GFC etc. All of them are possible but are they likely..? Probably not, still nobody cannot guarantee its not a possibility. Same way joel katz meant there are possibilities of anything unpredictable happening so plz dont twist his words for promotion of Neo bcz u just bought some.

Edited by Rchopra
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6 minutes ago, Ylod said:

This kind of openness about potential risks has indeed its value, but I think it is completely unnecessary and once again will be abused to spread more FUD among the masses. The risks or threats JK mentions here, are just as well applicable to any sort of venture or investment, not just Ripple. Anyone can have a competitor emerge with a better solution, be bogged down with regulation, face technical issues of any kind, have a senior figure go off the rails or with some skeletons in the closet (Hollywood, anyone?), and so on.

All of these threats are purely hypothetical and are not singular to Ripple. It's just the THREATS part of a SWOT analysis and that should never be taken out of context, because it skews the picture towards the negative. SWOT only makes sense only as a whole. In fact, I think if someone did a proper SWOT analysis of Ripple, it would be heavily skewed towards the STRENGTHS and OPPORTUNITIES side. 

Nice of someone as senior as JK to acknowledge that Ripple is not infallible and there are potential pitfalls but I say again it is unnecessary to list these as something that can happen overnight, as they are all very unlikely occurrences and Ripple has more than enough STRENGTHS in their repertoire to deal with any of them in due course. Also, if this is really all, I mean if there are no other serious threats or risks, we are home free. We can already start celebrating the success of Ripple and XRP.

What's wrong with FUD anyway?

You should put your money into something after you are aware of all the FUD and the risk factors. Ever read a company's 10-K? They list all of the potential risk factors in there. You have to consider this as an investor. 

If you want to make a profit on the back of a bunch of stupid money, go buy BTC. I'm fine with XRP stakeholders being informed, and that XRP will raise in price once it has proven itself. It trades more like an equity, I like that.

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I know I'm going to get a lot of hate for this ...

As much as I would love Ripple to make everyone rich, people that are going all in with XRP should be aware that they could loose everything in the long run as there is no real wide scale use cases with XRP as of yet. XRP is primarily/currently used to fund Ripple's economic activities as was stated by Brad in a FT report.

https://www.ft.com/content/8dcd3fa4-adbb-11e7-beba-5521c713abf4

Quote: 

Quote

Ripple owns about $15bn of XRP and we will use that to ensure that we continue to advance

So unless we see Ripple win over some people to use their currency, there are some major risks involved.

HOWEVER

There is definitely some short term to mid term profits to be made and Ripple should increase in value next year, if not substantially  

Edited by JigglyJelly
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22 minutes ago, corak said:

What's wrong with FUD anyway?

As long as there is FUD about XRP, you know you are dealing with the real thing here.

 

9 minutes ago, JigglyJelly said:

I know I'm going to get a lot of hate for this ...

As much as I would love Ripple to make everyone rich, people that are going all in with XRP should be aware that they could loose everything as there is no real wide scale use cases with XRP as of yet. XRP is primarily/currently used to fund Ripple's economic activities as was stated by Brad in a FT report.

https://www.ft.com/content/8dcd3fa4-adbb-11e7-beba-5521c713abf4

Thank you for your FUD sir. Have a nice day!

Edited by Ripplezzzz
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I still think the greatest risk to XRP is bitcoin. You never know when it's going to burst but one thing is certain: it will take us down with it. 

A sharp drop in price will make FIs very wary of the whole crypto space. It could throw us back years. 

So imo it's going to be a race: will XRP be adopted first or will bitcoin crash first. 

Edited by Siniath
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