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Where does the collected money go from XRP sales


AlibabaGrp
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Say Ripple came into an agreement with all the xRapid partners and institutions that buy XRP to set a giant buy wall at 1 dollar across different exchanges and government is okay with it

1- it'll build a price floor. 1 dollar is the new 0

2- it'll attract way more buyers. More speculators, more day traders.

3- it'll help the ecosystem, more institutions will get in. 

4- now XRP is at 5 dollars, Ripple moves the price floor up to $2.5. it'll be traded btw 2.5-5 dollars. 

This will happen guys at some point, may not be Ripple doing this, but years down the road if XRP is adopted, banks will try to keep the price stable.

Edited by AlibabaGrp
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I've posted this in two other threads on this topic. XRP II sales do increase circulating supply, and those sales should not impact public secondary market prices. I'm happy to try and answer any specific questions.

It may be good to keep in mind that XRP II LLC sales are not technically OTC, as there are more of a Primary Public Issuance.

It may also be good to keep in mind that XRP's utility will require it to move through already publicly issued inventory trading on secondary markets.

For XRP to be functionally used as a liquidity bridge asset, it will have to be traded through exchanges in each jurisdiction(s) which the payment path goes through. These trades must occur in the secondary markets, because the goal is for the recipient to be able to withdrawal the payment with in minutes/seconds.

XRP II LLC is a NY bit licensed organization that is also a registered MSB. One of the first bits of guidance that FinCEN gave was that the folks doing primary issuance of a digital asset, should register as a Money Service Business.

I suspect that with every xCurrent sale (or xRapid upgrade), the FI either gets a small bag of XRP, or if they dont want to hold it yet, they get an Option on XRP which they can exercise when the FI has identified an appropriate custody vendor.

Consider these sales to be Primary Public Issuance of XRP, which is a good thing because that is new value entering onto the XRPLedger.

Edited by KarmaCoverage
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1 hour ago, iLeeT said:

Keep in mind that there's a very fine line between buying back your own XRP and market manipulation. You can simply imagine the fud when people realize Ripple are buying back XRP, especially in this unregulated market.

At what point do you people stop with this is an unregulated market trope? I mean, fraud is illegal; the CFTC can govern XRP as a commodity; and you can sue for damages. Ripple Labs, Inc. and their affliate or subsidiary XRP II, LLC have both been formed in their respective domestic state and registered in those states they do business in. What else do you all want? Jesus Christ!

Edited by TheXRPer
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3 hours ago, AlibabaGrp said:

163 million dollars worth of XRP sold in q3. Where does this money go? I understand some of it is for overhead costs but what if Ripple sells 500 million XRPs every quarter next year, you can't tell me their overhead is 2bil a year. 

Some goes to charity obviously. 

Any articles, info, tracker how all this money is spent? Does even any of it even goes into XRP?

After the bills are paid-lease-mortgages-lights-people's pay/benefits-R+D etc. The remaining $$ goes to the stakeholders/share holders/owners.

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They can easily build a support price. Say at 1 dollar so it won't ever go below it.
Would you call this partecipating in the market?

If the major reason is not to make profits from (short) XRP trades, but rather to support your and your clients business proces, I would say yes as in that case it is an economic related technical support acheived by participating the market. If it is to chase quick wins and not related to dampen the cross border dynamics of Ripplenet, I would call it speculative manipulation
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2 hours ago, TheXRPer said:

At what point do you people stop with this is an unregulated market trope? I mean, fraud is illegal; the CFTC can govern XRP as a commodity; and you can sue for damages. Ripple Labs, Inc. and their affliate or subsidiary XRP II, LLC have both been formed in their respective domestic state and registered in those states they do business in. What else do you all want? Jesus Christ!

Hehe, that's sweet. :) And very naive - did anything happen to coinbase when they've blatantly manipulated the market multiple times? The are numerous examples.

Did anything happen to coinmarketcap? (the Korean volumes)

Welcome to wild wild west.

Edited by iLeeT
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4 hours ago, AlibabaGrp said:

Yea exactly, so it doesn't crash from 3.20 to 25c. They can easily build a support price. Say at 1 dollar so it won't ever go below it. Only one way and that's up, this will attract more buyers. More institutions would feel safe because Crypto is the wild wild west and exchanges have a lot of power too. What if exchanges dump xrp on the market and manipulate **** up

 

It's crazy things like this don't raise questions for ppl, I'm not spreading fud, xrp is here to stay, but think about, if Ripple sells 2 billion dollars XRP next year, do you think all of it will be used for charities and operations? That's a lotttt of money.... It could be well used to build liquidity tho

I get what you are saying. Being a multi billion dollar company they could easily do more to stabilize the price and build the xrp ecosystem by making exchanges. Sometimes I feel the company doesnt care. It will be sad if 5 years from now price is still less than $5 

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48 minutes ago, iLeeT said:

Hehe, that's sweet. :) And very naive - did anything happen to coinbase when they've blatantly manipulated the market multiple times? The are numerous examples.

Did anything happen to coinmarketcap? (the Korean volumes)

Welcome to wild wild west.

What law are you alledging Coinbase and CMC of violating?

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2 hours ago, bayarea510 said:

I get what you are saying. Being a multi billion dollar company they could easily do more to stabilize the price and build the xrp ecosystem by making exchanges. Sometimes I feel the company doesnt care. It will be sad if 5 years from now price is still less than $5 

It is critically important that Ripple Inc Not interfere with the open markets as little as possible, and be transparent when they do sell (hence this thread). 

If the market's broad perception was that Ripple Inc "controlled" the price of XRP, then the whole thing would be a farce. This is why I think the bitcoin maxies blew so hard on the "Ripple is centralized" whistle.  

The irony is in that, Bitcoin is the network which has grown more centralized, while XRPLedger has grown more decentralized over the same period of time.

Ripple Inc knows well that they need to build up the utility of the network (RippleNet), for XRP to grow in utility value, since XRP is the only unit of value that can be used to pay for using use the network. In short, as RippleNet grows, so should XRPLedger use, and thus XRP value. The broader IoV growing should and has also driven XRPLedger use.

Edited by KarmaCoverage
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6 minutes ago, bayarea510 said:

Being a multi billion dollar company they could easily do more to stabilize the price and build the xrp ecosystem by making exchanges.

You are talking as if they have nothing but spare time and spare resources. What do you think they are doing all day? Lurking XRP chat and posting HODL memes on twitter? 

Why would they try to enter a different area of competition when they already have a huge headstart in a different, far more lucrative area? 

9 minutes ago, bayarea510 said:

Sometimes I feel the company doesnt care.

They care about the price of xrp. The best way to build the price is to build utility. So they are spending every waking hour on that. 

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4 hours ago, TheXRPer said:

What law are you alledging Coinbase and CMC of violating?

I'm no expert in US law but surely there's something that covers insider trading and market manipulation, especially in coinbase case when they are a licensed exchange etc. Truth is, the market is too small at the moment for authorities to spend resources to properly regulate it.

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