Jump to content
Amigo

Track 1 xRapid Corridor and earn 500 XRP

Recommended Posts

1 hour ago, Graine said:

The way xRapid is made will not drive the price up. Any volatility incurred will diminish the appeal of cost-savings via xRapid. 

Price can go up low vol style. See S%P500 over 2017

Share this post


Link to post
Share on other sites
18 minutes ago, jcdenton said:

That was the core question Graine, why would you treat it so carelessly. I'd  be the first to look into private markets, but would never trade if I could get a better price on the open market - nor would anyone. 

Not if available liquidity is not sufficient for your transaction. If there's xRapid-like path with deep liquidity (which is easily doable via ILP plugins and XRP MMs), payment will favor the deeper path, even if the best price would differ 1-3% from the spot. But it could be 0.1% or even Ripple could pay XRP to you for using this path. 

 

Share this post


Link to post
Share on other sites
52 minutes ago, Graine said:

You need MMs and deep orderbooks. 

Orderbook depth is an illusion, see 15.01.2015 EURCHF.

If you want to tame volatility you need lots of supply at low price or high price at low supply.

Share this post


Link to post
Share on other sites

Maybe I'm missing the point.  Joel explains how he thinks the price will increase with adoption.

4) We don't target the biggest corridors like USD->EUR because they're efficient. We target an inefficient, but fairly high volume, corridor. For example, EUR->INR. Market makers have very small profit margins, so even a small incentive to place good EUR<->XRP and XRP<->INR offers can beat what banks are getting now through the correspondent banking system.

5) Once we get one corridor, we hang other countries off each end of the corridor, expanding the reach of XRP.

6) Now, say you're a company like Seagate that pays out money all over the globe. If you have to make payments to five countries in our corridors, you'd rather hold one pile of XRP than five piles of different currencies. That increases demand.

7) Now, say you're a company like Apple with a huge pile of cash. If you want to snap up other assets cheap, you'll need to hold the asset the people selling want. If they're going into any of our corridors, they'll want XRP, so you would want to hold it.

8) If that succeeds, it should massively increase the price of XRP.

https://www.reddit.com/user/sjoelkatz/comments/?count=25&page=7&after=t1_dpetww6

Page after page of valuable information that @JoelKatzhas answered dealing with how XRP will be used.  But not one mention of a concern about the price crashing when the sell goes through.  Anyway Interesting thread!

Share this post


Link to post
Share on other sites
10 minutes ago, Graine said:

Not if available liquidity is not sufficient for your transaction. If there's xRapid-like path with deep liquidity (which is easily doable via ILP plugins and XRP MMs), payment will favor the deeper path, even if the best price would differ 1-3% from the spot. But it could be 0.1% or even Ripple could pay XRP to you for using this path. 

 

I guess what I'm ultimately getting as is that the higher the price, the deeper the liquidity, no?

So, if Ripple can incentivize or cover the volatility cost in the beginning to establish some market makers in public markets and the price goes up due to demand increasing through xRapid, would that not make the public market the bets place for liquidity? Add in use cases we haven't thought of (IE, the codius example they used at Google), and all of a sudden it doesn't make a ton of sense to be on the private market, no? And if the price is going up but you still have a million dollars, you're simply moving half the amount of XRP, so the volatility isn't really that big of a deal, unless it's going down? 

Isn't that where Market Makers make money anyway? 

I gotta be honest, I'm confused as to why these markets would exist privately with low value XRP? Could you explain, step by step, how that would work?

 

 

Edited by Hodlezerper

Share this post


Link to post
Share on other sites
5 minutes ago, teddybear said:

My point was to illustrate that volatility is a neutral indicator relative to price direction

Which is not the point of this discussion. 
I'm arguing that xRapid will be market neutral. 

3 minutes ago, teddybear said:

Orderbook depth is an illusion, see 15.01.2015 EURCHF.

If you want to tame volatility you need lots of supply at low price or high price at low supply.

That was an overleveraged anomaly due to an unexpected externality in a market, that has no xRapid. 

 

 

5 minutes ago, Hodlezerper said:

the price goes up due to demand increasing through xRapid

It will not 'go up'. It will introduce price disparities, i.e. drive the price up on bitstamp and crash the price on bitso if the remittance flows from usd to xrp if and only if the available usd/xrp/mxn rate is better than legacy. Not to mention there could be ILP orderbook with similar or better rates. 

Share this post


Link to post
Share on other sites
12 minutes ago, Graine said:

Not if available liquidity is not sufficient for your transaction. If there's xRapid-like path with deep liquidity (which is easily doable via ILP plugins and XRP MMs), payment will favor the deeper path, even if the best price would differ 1-3% from the spot. But it could be 0.1% or even Ripple could pay XRP to you for using this path. 

 

Respectfully -- liquidity goes where there's profit to be made, and you have made no case for the kind of private markets you were suggesting. We must be misunderstanding one another

Share this post


Link to post
Share on other sites
6 minutes ago, Graine said:

t will not 'go up'. It will introduce price disparities, i.e. drive the price up on bitstamp and crash the price on bitso

Will there not be arbitrage bots hanging around to pick up slack? 

I suppose that's how speculation could drive the price one way or the other, but it seems to me that if there is enough money floating around the world simultaneously (like the USD) then an order in or out won't crash a market here or there, if there are many other people buying and selling at the same time. Which would, in theory, lead to a price increase? 

Share this post


Link to post
Share on other sites
5 minutes ago, jcdenton said:

Respectfully -- liquidity goes where there's profit to be made, and you have made no case for the kind of private markets you were suggesting. We must be misunderstanding one another

Ripple wants to have money flow through xRapid. Current orderbooks are too shallow. Immediate relief would be
1) construct a private path via ILP and RCL, using pre agreed upon rates with very deep best bid/ask
2) instruct the MMs currently selling XRP on exchanges for them, to post deeper best bid/ask and assume the risk of the order consumed by non-fi orders. 

3 minutes ago, Hodlezerper said:

Will there not be arbitrage bots hanging around to pick up slack? 

How many arbitrage bots could consume at least 1M/minute?

Share this post


Link to post
Share on other sites
9 minutes ago, Graine said:

Ripple wants to have money flow through xRapid. Current orderbooks are too shallow. Immediate relief would be
1) construct a private path via ILP and RCL, using pre agreed upon rates with very deep best bid/ask
2) instruct the MMs currently selling XRP on exchanges for them, to post deeper best bid/ask and assume the risk of the order consumed by non-fi orders. 

If you are right, Ripple (and their real investors) will also know that, has done various simulations on this a long time ago I guess, and has planned ahead with several initiatives. What do you think they haven't made public but they are doing behond the scenes to anticipate in these matters?

Edited by Amigo

Share this post


Link to post
Share on other sites
7 minutes ago, Hodlezerper said:
15 minutes ago, Graine said:

It will not 'go up'. It will introduce price disparities, i.e. drive the price up on bitstamp and crash the price on bitso

Will there not be arbitrage bots hanging around to pick up slack? 

Hmm, arbitrage bots cannot in the end manipulate actual supply and demand and if XRP is being sold into Mexico, arbs won't help the fact that price has to go down over there...

Share this post


Link to post
Share on other sites
4 minutes ago, Graine said:

How many arbitrage bots could consume at least 1M/minute?

No idea? That's about 1.4 billion a day which is quite a bit less than BTC right now in daily volume. 

I literally know nothing about market making so I'm super curious as you seem to be coming at this from a market maker's standpoint regarding the spread. Theoretically, unless I'm wrong, we're really looking for deep liquidity. That we agree on. Once there's liquidity there's more stability. I suppose what I'm asking is can Ripple cover the cost market maker's are potentially losing due to high volatility in the early days to attract more attention and money to the space, thereby increasing demand/price and thereby deepening liquidity? 

As I understand it we're sort of chicken or the egg right now and someone is going to have to strategically use their stash of 55 Billion XRP to prop the market up a little bit while things get going. I'm not sure how a private market would allow for anyone to make any money. That seems like we might as well be trading IOUs back and forth and there you go with Nostro/Vostro accounts? 

But like I said, I'm ignorant so, I'm trying to understand this from your perspective but it seems like I need it laid out fundamentally.

Share this post


Link to post
Share on other sites
1 minute ago, jcdenton said:

Hmm, arbitrage bots cannot in the end manipulate actual supply and demand and if XRP is being sold into Mexico, arbs won't help the fact that price has to go down over there...

Don't they have something to do with supply and demand? If someone sends XRP from one exchange to another to buy some cheap XRP, isn't that effecting supply and demand in another market on another exchange?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...