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Can XRP Catch On? Ripple Touts New Banking Partnerships

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Amazing news couched in weird negativity from Fortune:

"... Euro Exim Bank will begin running an exchange service that will hold XRP; he declined, however, to say whether it would buy its supply of XRP on the open market or receive it from Ripple."

A bank will be accumulating XRP and serving as an exchange and overseas transfer service for customers (!!!). But for some reason the author thinks it matters where they get the XRP from. Do they realize it all hits the open market eventually? Even OTC sales impact the market. The supply of XRP is not infinite. 

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Rather funny indeed. But the article is not too bad to be honest. 

It is OK Fortune is a bit skeptical at this stage. Time will proof otherwise. I think we could provide them better facts/arguments how it actually works. But we should definitely not make every post negative. That will only intensify the ''aggressive xrp community army'. Would be best we keep just enthusiastic and promotors on a positive way. 

Note: I am not saying any of you make every post negative  ;) 

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Posted (edited)

Yup @XRPfan_Eelco I find that my cattle are always running and happy to see me when I have a bucket of sweet feed....  Not so much when I grab my cattle prod. :P

Once the new cattle find out how tasty the feed is, you really can't stop the stampede.  It takes a day or two, but figure it out the most certainly do!  ;)

 

 

Edited by CryptoDrover

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This is a poorly camouflaged FUD effort on the part of Fortune. The attached video clip looks to be from way back in June, when the price of bitcoin, as is seen in the clip, was $6,718. Why on earth would they re-post a clip entitled "Ripple Struggles To Buy A Spot On A Major Exchange. Coinbase and Gemini still don't list xrp" if this piece wasn't a actually a slimly veiled attempt to trash xrp? As if to discredit the Euro Exim Banks adoption of Xrapid, they post the following:  "Still, it’s notable that Euro Exim Bank won’t be holding any XRP itself at the outset, but will instead rely on payment provider BitPay to handle the cryptocurrency operations." The wording reveals their bias: by starting out with "Still, it's notable...." they reveal their attempt to water down this accomplishment. In the very next paragraph, they are once again attempting to downplay the significance of the additional four institutions entering into xrp usage. I see the following as a carefully worded slight:  "-amount to Ripple's effort to promote....."  They start the next paragraph with a "While the company succeeded in...." which is a clear use, imho, of the word 'while' in order to discredit the success. They go a step further in using the word "spurned" later in that same sentence to hammer home their FUD intent. And then, as if to add veracity to their hack job of an article, they hold up Western Union as an example, without clarifying that WU has built a unique network infrastructure in it's own, widely distributed ecosystem.  Words and composition convey more meaning than most authors ever realize, and this article is a perfect example for me.  ("still, while, spurned, attempts, vast, sway," and last but not least, "derangement")  That's just my two zerps....

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3 hours ago, ADingoAteMyXRP said:

Amazing news couched in weird negativity from Fortune:

"... Euro Exim Bank will begin running an exchange service that will hold XRP; he declined, however, to say whether it would buy its supply of XRP on the open market or receive it from Ripple."

A bank will be accumulating XRP and serving as an exchange and overseas transfer service for customers (!!!). But for some reason the author thinks it matters where they get the XRP from. Do they realize it all hits the open market eventually? Even OTC sales impact the market. The supply of XRP is not infinite. 

Credits to the author in bringing up this as an important Q, as for the bank it DOES matter if they can buy (cheap) OTC. 

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2 minutes ago, kanaas said:

Credits to the author in bringing up this as an important Q, as for the bank it DOES matter if they can buy (cheap) OTC. 

I’ve tried to debunk this many times.  OTC is not sold cheap.  It’s at market price.  Tons of evidence for that and none, zero for the cheap idea.  

Maybe im wrong but noone has ever shown ANY evidence for cheap as far as I know.  But there are lots of Ripple employee statements and other evidence for the market price sale.  

Buying OTC is different that on an exchange but please not let people think it’s cheaper OTC.

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3 hours ago, Tinyaccount said:

I’ve tried to debunk this many times.  OTC is not sold cheap.  It’s at market price.  Tons of evidence for that and none, zero for the cheap idea.  

Maybe im wrong but noone has ever shown ANY evidence for cheap as far as I know.  But there are lots of Ripple employee statements and other evidence for the market price sale.  

Buying OTC is different that on an exchange but please not let people think it’s cheaper OTC.

Well... slippage for one. I can buy 20 Million XRP for the current market value of XRP plus a percentage for the OTC profits in one transaction. I cannot do the same via an exchange due to liquidity shortages. I would have to buy out multiple order books to achieve my XRP target and as I do, my costs increase.

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33 minutes ago, BrownBear said:

Well... slippage for one. I can buy 20 Million XRP for the current market value of XRP plus a percentage for the OTC profits in one transaction. I cannot do the same via an exchange due to liquidity shortages. I would have to buy out multiple order books to achieve my XRP target and as I do, my costs increase.

Yes of course...   the very reason OTC exists.

But that is not what is being referred to.  

People seem to think (for no reason that I can see) that the price quote is lower for OTC.  

As far as I can see, that just isn’t true.  

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9 hours ago, ADingoAteMyXRP said:

Amazing news couched in weird negativity from Fortune:

"... Euro Exim Bank will begin running an exchange service that will hold XRP; he declined, however, to say whether it would buy its supply of XRP on the open market or receive it from Ripple."

A bank will be accumulating XRP and serving as an exchange and overseas transfer service for customers (!!!). But for some reason the author thinks it matters where they get the XRP from. Do they realize it all hits the open market eventually? Even OTC sales impact the market. The supply of XRP is not infinite. 

The Ripple Insights post states that Euro Exim Bank will be utilizing xRapid.  When using xRapid, ALL tx are on the open exchange market, not OTC.

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I’ve tried to debunk this many times.  OTC is not sold cheap.  It’s at market price.  Tons of evidence for that and none, zero for the cheap idea.  
Maybe im wrong but noone has ever shown ANY evidence for cheap as far as I know.  AnBut there are lots of Ripple employee statements and other evidence for the market price sale.  
Buying OTC is different that on an exchange but please not let people think it’s cheaper OTC.

Yep. And sometimes even better for a bit higher price than buying on open market (for reason of accounting visibility)

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Posted (edited)
12 hours ago, Tinyaccount said:

Yes of course...   the very reason OTC exists.

But that is not what is being referred to.  

People seem to think (for no reason that I can see) that the price quote is lower for OTC.  

As far as I can see, that just isn’t true.  

Just a quick question. What do you think Market Makers are and why does Ripple talk about them being used as a primary source of liquidity?

Edited by BrownBear

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4 hours ago, BrownBear said:

Just a quick question. What do you think Market Makers are and why does Ripple talk about them being used as a primary source of liquidity?

I’m afraid I do not know much at all about these entities...   I’m not an expert on any of this.

From what I understand Market Makers are important in markets to ensure there is always a bid and an ask available to handle the liquidity needs of market participants.  They make their money off the spread and carry the risk of volatility.

So if volatility is high the spread is too...  and as it is reduced by higher volumes,  the spread comes down.

I believe from Ripples statements that they are willing to use their XRP war chest to incentivise MMs during this initial period.  So these firms will have stockpiles of XRP and local fiat ready to trade at XRapid exchanges.

As I say though...  I really know nothing much about this other than what I have read.

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5 hours ago, Tinyaccount said:

From what I understand Market Makers are important in markets to ensure there is always a bid and an ask available to handle the liquidity needs of market participants.  They make their money off the spread and carry the risk of volatility.

Close, they take the risk by filling the order for market participants then then buy/sell on an exchange to generate their income. So if ABC Banks wants to send $50,000 @$0.35 the market maker will fill this order by selling the FI the XRP by either buying the XRP off the exchange with their own funds or using their own stockpiles of XRP and then using the money from the sale to the FI to buy more XRP.  

  

This is an OTC transaction.

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