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Increased circulatin supply


XRPSlovenia
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1 hour ago, DutchPanda said:

Correct me if i'm wrong, but adding 600 Million coins in circulation since yesterday would have had an 1.5% negative effect on the price ?

(total Mc divided by 600 more coins = a lower price per coin?)

Or am I not wide awake yet?

 

 

17 minutes ago, scoobysi said:

or more specifically 600mn (how I've always written it :) ) if sold OTC from escrow wouldn't have any affect on the market/exchange price, unless the buyer suddenly sold for less than market price, which I presume Ripple has strict rules on when they sell to a customer.

Yes, agreed, If Ripple sold a large amount OTC you'd probably see no immediate price effect in this stage of the game.

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On 12/7/2018 at 10:14 PM, Hodor said:

I would expect that the 'distributed' number should always be increasing over time.

My understanding (or guess) is that Ripple enters into agreements with FIs, etc to test Xrapid with xrp for a certain time period.  Part of the agreement can result in an OTC purchase, but with the right to sell the xrp back to Ripple if the entity for some reason did not want to use it after the trial period.  In issuing its distribution figures, Ripple deems the xrp as distributed once the agreement/OTC purchase is entered into.  When the entity exercises the right to sell the xrp back to Ripple after the trial period, the distribution figure is lowered.  The net distribution figure almost always goes up, but, from what I have seen over the years, it averages going down approximately one week per quarter.

Ripple does not update the distribution every week from what I can tell.  Instead, it updates the weekly totals every month or so (sometimes more often, sometimes less often).  It looks like the total distribution figure cleared 41B for a couple of weeks, but went just south of that figure - to 40.9B - in the last week.   

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4 hours ago, Alluvial said:

My understanding (or guess) is that Ripple enters into agreements with FIs, etc to test Xrapid with xrp for a certain time period.  Part of the agreement can result in an OTC purchase, but with the right to sell the xrp back to Ripple if the entity for some reason did not want to use it after the trial period.  In issuing its distribution figures, Ripple deems the xrp as distributed once the agreement/OTC purchase is entered into.  When the entity exercises the right to sell the xrp back to Ripple after the trial period, the distribution figure is lowered.  The net distribution figure almost always goes up, but, from what I have seen over the years, it averages going down approximately one week per quarter.

Ripple does not update the distribution every week from what I can tell.  Instead, it updates the weekly totals every month or so (sometimes more often, sometimes less often).  It looks like the total distribution figure cleared 41B for a couple of weeks, but went just south of that figure - to 40.9B - in the last week.   

I outlined how this can be done with Payment Channels here..

https://xrpcommunity.blog/payment-channels-ripple-as-a-lender-may-17/

I think it makes a while hell of a lot of sense for Ripple to loan both Exchanges, and any Banks who want to act as a multi-hop liquidity provider on RippleNet.

Edit: just re-skimmed that one, it does not make the point made in the How xPool one, that "if loans are denominated in Fiat, yet settled in XRP"... than the loans are accomplishing the "Gateway Role" of on/off-boarding value to the XRPLedger from fiat.

Edited by KarmaCoverage
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On 12/8/2018 at 1:50 AM, Rey said:
On 12/8/2018 at 1:28 AM, scoobysi said:

or more specifically 600mn (how I've always written it :) ) if sold OTC from escrow wouldn't have any affect on the market/exchange price, unless the buyer suddenly sold for less than market price, which I presume Ripple has strict rules on when they sell to a customer.

Yes, agreed, If Ripple sold a large amount OTC you'd probably see no immediate price effect in this stage of the game.

Since more coins are going into circulation all the time, would it be correct to say that if the price doesn't go down and there are more XRP, that the price per XRP has effectively gone up? Or has my thinking gone sideways?

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36 minutes ago, GiddyUp said:

Since more coins are going into circulation all the time, would it be correct to say that if the price doesn't go down and there are more XRP, that the price per XRP has effectively gone up? Or has my thinking gone sideways?

You're mixing up "unit price" and "market cap", which in this context you correctly observe would move in inverse directions.

Edited by KarmaCoverage
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23 minutes ago, GiddyUp said:

Since more coins are going into circulation all the time, would it be correct to say that if the price doesn't go down and there are more XRP, that the price per XRP has effectively gone up? Or has my thinking gone sideways?

Nope, sorry, price is just a temporary equilibrium of supply and demand. E.g. If the price of an asset is $2 and a supplier sells 1M freshly distributed assets OTC to a buyer who is planning to keep those assets for the time being, in that case the transaction doesn't move the price as the equilibrium of supply and demand hasn't changed. This would be different if the buyer of those 1M assets would decide to dump those assets on the market. 

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As for the misterious 200M, isn’t it possible that Ripple simply bought back this amount from Jed? This way Jed could sell 200M at once (good for him) without affecting the market (good for Ripple). Win-win. There must be a point when Ripple thinks that the prices are low enough to spend some money on decreasing the obvious risk of having a renegade holding too much xrps...

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9 minutes ago, XRPSlovenia said:

Circluating supply reduced for cca 164mio according to CMC... is this normal? 

 

5 minutes ago, mistatee2000 said:

Not seen that before

Well, not long ago about 200M was escrowed in chunks of 5M. That action also reduced the supply as showed by CMC.

You're right, since today CMC seems to show a lower amount. 

Edited by Rey
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