Rchopra

XRP DISTRIBUTION UPDATE

181 posts in this topic

This is an important number we, XRP holders, did not know. So, probably Ripple will keep 50% of the total amount of XRP for the far future. Seems the perfect strategy. An average of about 222 millions XRP distributed per month is less than the average of the last months so, with an effective increase in demand mainly from institutional buyers, those 14.4 billions XRP can drain well before the end of 2021.

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15 hours ago, Rchopra said:

Hi Guys. I just saw bit of information on XRP Distribution strategy by Ripple. I think this is updated information because i did not see it before at XRP Portal page.

If market conditions permit, we expect our company to hold approximately 50 billion XRP by the end of 2021. This schedule is indicative and discretionary.

TOTAL XRP HELD BY RIPPLE:64,439,207,292

TOTAL XRP HELD BY OTHERS:35,558,046,921*

This news can be taken both positive and negative.

on the negative side - There will be huge supply coming till 2021 and for even longer time than that, which means less possibility of xrp price going up till 2021.

on the positive side-  looking at current distribution schedule if they were releasing 250 million xrp per month its roughly 3 billion per year + the potential risk of additional supply from Ripple which could put speculators at risk. With this statement they have reduced that risk by stating there is only 15 billion to come till 2021 rather than 65 billion xrp. I understand they may change their plan but atleast there is bit more transparency now. So Kudos to Ripple. 

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4 minutes ago, FMGC said:

This is an important number we, XRP holders, did not know. So, probably Ripple will keep 50% of the total amount of XRP for the far future. Seems the perfect strategy. An average of about 222 millions XRP distributed per month is less than the average of the last months so, with an effective increase in demand mainly from institutional buyers, those 14.4 billions XRP can drain well before the end of 2021.

Ripple didn't say they were keeping anything for the future.

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This information is important to me because of my investment in the network token:  In addition, there are other stakeholders of Ripple that are interested to see plans like this in a formal communication - FIs, banks, MMs, etc...    I'm thinking that traditional banking institutions like to see this type of market transparency.  I think the effect of this communication is positive - how many times have we heard people complain about not knowing Ripple's distribution strategy?  

Edited by Hodor

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4 minutes ago, Hodor said:

This information is important to me because of my investment in the network token:  In addition, there are other stakeholders of Ripple that are interested to see plans like this in a formal communication - FIs, banks, MMs, etc...    I'm thinking that traditional banking institutions like to see this type of market transparency.  I think the effect of this communication is positive - how many times have we heard people complain about not knowing Ripple's distribution strategy?  

If it said the only distribution now is through business development I think that would be positive but it didn't, if it said they were somehow capping at 50bill distribution that would be positive but it didn't.

It did look like wishy washy statements, the only positive thing I took from it was it appears the majority of distribution now is through business development routes - but then haven't they always been?

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This can be taken either way. It is still too vague! 

Quote

If market conditions permit, we expect our company to hold approximately 50 billion XRP by the end of 2021. This schedule is indicative and discretionary.

Translation: We might change our minds. 

EDIT: Can we merge this with the other (now basically identical) thread? 

Edited by rippledigital

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2 minutes ago, rippledigital said:

This can be taken either way. It is still too vague! 

Translation: We might change our minds. 

It's more information than was previously published, vague or no. 

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1 minute ago, Hodor said:

It's more information than was previously published, vague or no. 

P!ssed up again Hodor?

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12 minutes ago, Haraldo said:

It did look like wishy washy statements, the only positive thing I took from it was it appears the majority of distribution now is through business development routes - but then haven't they always been?

I see honesty, not wish-washy statements.  Basically, they're saying to the best of their ability and current knowledge, these are their plans.  Businesses are not anonymous crypto-traders - they have to worry about legal issues. 

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Yeah they need that leeway – it's, well... at their discretion! 

Doesn't help XRP speculators much, but then it's always been a punt anyway. 

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8 minutes ago, rippledigital said:

This can be taken either way. It is still too vague! 

Translation: We might change our minds. 

I think there will be no "hard coded" distribution plan for all the reserves. The market making incentives must be very tightly defined but business development is very tidal.

I like it being human driven because it is a contrast with all other criptos, but in the end the goal is the same: to be widely used as a mean for exchanging value.

I see a future where some criptos reached this plateau, and we will look back and see how they did it. Ripple would show business strategy behind it.

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2 hours ago, Haraldo said:

Someone has obviously thought very long and hard about it but I don't get that update at all lol.

Its almost as if it means so much more to someone else that the message isn't quite relayed properly. I'm more intrigued with the removal of the distribution date. I hope it means that distribution is halted until the manager's vacancy is filled and the strategy defined but until then the derivatives, MMs and any other significant industry business are the distribution route. 

That should be mean that the price growth on news shouldn't stifled by distribution!

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Some of that value may be locked up in derivatives as a show of confidence for other large investors and as a means to influence future value as Ripple's direct market influence wanes.

I suspect there is a containment strategy in case a malicious actor intends to influence the market. I also suspect such a strategy is sold to skeptical FIs and regulators as a means of self insurance and investor protection. You may not get crazy wealthy off this 'investment' but you won't lose everything as well.

Whenever I am not sure of Ripple's strategy I just visualize how they have to sell/ market this funny money to the potential bank partner across the boardroom table. In this case a frictionless exchange token with a fixed or least tamed price fluctuations makes sense. Ripple basically has been repeating this pitch for years. A slow release of XRP around the same market value, derivatives, and now this long term forecast.

Those looking for a quick path to riches will have to play with some very tight margins or expand to other fiat/ crypto trading through ripple. The good news that I took away is that there is enough demand to absorb all the 'new' XRP hitting the market. I don't see serious wealth being made with XRP directly, but rather market depths and other IOU expanding - ie. more trading options being made possible. I expect Ripple sees this as well- hence the focus on MM and partnerships rather than direct tools for pushing it's own token.

Ripple's value is not in its token but what that token allows you to do.


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14 minutes ago, Mercury said:

Ripple's value is not in its token but what that token allows you to do.

Do you mean that if Bitcoin is said to be so-called digital gold, then XRP could be called digital graphene?

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17 minutes ago, Mercury said:

Those looking for a quick path to riches will have to play with some very tight margins or expand to other fiat/ crypto trading through ripple. The good news that I took away is that there is enough demand to absorb all the 'new' XRP hitting the market. I don't see serious wealth being made with XRP directly, but rather market depths and other IOU expanding - ie. more trading options being made possible. I expect Ripple sees this as well- hence the focus on MM and partnerships rather than direct tools for pushing it's own token.

Ripple's value is not in its token but what that token allows you to do.

That's a really good point. XRP is a great asset for new markets and market makers looking to expand their reach from niche areas and currencies etc. And if they bring value to the Ripple ecosystem they can be given XRP for free (with agreements) to bootstrap the initiative; it's a win win. It can be given and boughht/sold (depending on contractual stuff) at strategic moments so as to keep the price stable.  

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