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Essq

USD gained from escrow monthly ?

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Hello everyone,

I was trying to calculate the amount USD Ripple Labs generates monthly from the escrow.

Potential would be +$2B. Which is an insane amount of resources coming in.

So the core of the question: How many XRP do we forecast will be released from ripple during Q1-2018 ?

 

Thanks in advance.

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There's no real answer to that. We don't know how many partnerships they will have this year. We do not know how many of those partnerships will by xrp. We do not know how much xrp those partners will buy. We do not know how much xrp will be released to the exchanges after all partners have bought their part each month if any will be released at all. Sorry but not even those at ripple can answer such a broad ended question with no concrete details. 

Edited by JC83

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They sell 0.2 percent of XRP trading volume. So it all depends on the trading volume in Q1. You can approximate using the volumes we've seen the past few days.

I'm not sure if it's on-ledger volume only or if internal volume on exchanges also counts.

And that does not account for OTC trades with financial institutions. (Ripple selling XRP to FIs directly, probably below market price)

Edited by Zerping

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I believe Ripple would have a forecast of what I'm looking for.

The amount they gain from that is used to acquire services from places that do not yes take XRP as payment.

Research and Development is very expensive. Just look at the amount other tech giants uses in specific areas.

Growth, Either organically or via acquisitions, requires spending money.

 

 

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8 minutes ago, Zerping said:

They sell 0.2 percent of XRP trading volume. So it all depends on the trading volume in Q1. You can approximate using the volumes we've seen the past few days.

I'm not sure if it's on-ledger volume only or if internal volume on exchanges also counts.

And that does not account for OTC trades with financial institutions. (Ripple selling XRP to FIs directly, probably below market price)

That would mean that 0,2% of last months volume (35.000.000.000) would be estimated at around $75.000.000. That is a lot.

And that's with the OTCs mentioned.

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3 minutes ago, Essq said:

That would mean that 0,2% of last months volume (35.000.000.000) would be estimated at around $75.000.000. That is a lot.

And that's with the OTCs mentioned.

Yes it's a lot and that is the point. That is the business model of ripple. Sure banks pay them for the ripple software. But what makes them the most money is XRP itself. That is why all of the 100+ employees are working towards XRP having a higher price/volume/liquidity.

Because that means more money for Ripple and more money for Ripple means more resources to make the XRP price go through the roof.

This strategy was mentioned several times by people smarter than me & stated also by Ripple employees (David Schwartz). Its a positive feedback loop that benefits us all.

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8 minutes ago, Zerping said:

Yes it's a lot and that is the point. That is the business model of ripple. Sure banks pay them for the ripple software. But what makes them the most money is XRP itself. That is why all of the 100+ employees are working towards XRP having a higher price/volume/liquidity.

Because that means more money for Ripple and more money for Ripple means more resources to make the XRP price go through the roof.

This strategy was mentioned several times by people smarter than me & stated also by Ripple employees (David Schwartz). Its a positive feedback loop that benefits us all.

Usually HR/Staff is one of the largest expenses in a company, and I would go as far as say it is the highest OPEX Ripple has.

But with an expection of both volume and value of XRP increase over the next year. A conservative answer would be $1.000.000.000 income from escrow release over the period of 2018, expecting an average price over the year of $3,00.

So with $1.000.000.000 coming in, salaries should by far be covered.

 

Will they start doing acquisitions in the future. Buy competition or new technologies ?

I mean it would not be in the nature of the company to store excess USDs in a "traditional" bank ?

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I agree the big indicator of progress is if XRP is used by their partners as opposed to just their Ripplenet software - the link below of banks going live shows them using Ripplenet only without XRP.

Reading thru Ripples official cost model below it projects a 33% cost saving in using Ripplenet for banks & then 42% saving if XRP used and then progressing to a 66% cost saving with a stable low volatile XRP bridging currency. 

So going back to Essqs original question - is there any way to monitor how much XRP is actually being bought by banks /FIs in Q1 2018 ?  & also what incentive price Ripple provides for them to use XRP as their liquidity?

not sure if that would be confidential info ? Or publicly available??

i feel that info would be a good measure of XRP take up & hence progress for Ripple ?  Or am I mistaken ? 

https://ripple.com/files/xrp_cost_model_paper.pdf

https://ripple.com/insights/ripple-powered-instant-payment-services-now-live-axis-bank-rakbank-standard-chartered/

 

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