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Kiwi

Does progmatic sells benefits XRP ecosystem?

Does progmatic sells benefit XRP ecosystem?  

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  1. 1. Does progmatic sells benefit XRP ecosystem?

    • Yes.
      26
    • No.
      21


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In topic Q1 2019 markets report there is a discussion about Ripples progmatic sells. It seems like some justify Ripple with  
dumping tens of millions XRP daily because they are building XRP ecosystem that way.

I would gladly hear your opinion on it.

Mine is this. 

They do not build ecosystem that way since there is NO new people in the market. Even if there is, I really doubt they buy daily tens of 
millions xrps.

Those who justify Ripple doing it says "it is the only way to make distribution", which I completely disagree with. There is multiple ways.

1. Donation
2. Dumping on BULL run.
3. Attracting new investors (e.g. start burning xrp daily instead of dumping it)


Must of people got in crypto in late 2017 when they heard on the news about bitcoin.
Why was Bitcoin on the news? Because it was raising, rapidly. Why did you buy crypto? Because you smelled money.
So, lots of new people got in crypto while the price was INCREASING. This is when the distribution occurs.

How does Ripple distribute XRP if they are dumping on exchanges in BEAR market? Price is literally 30cents for 3 months. 
Do you really think average Joe will buy something that doesnt move while other shitcoins rise?? Of course not. They will ignore it.
Because it is not attractive.

Please do enlighten me how does ripple build ecosystem while dumping on exchanges? 

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If you feel there are no new people coming on-board, then the price can only dwindle down in value since our current expansion of XRP's use cases just isn't wide enough to eclipse international transfer or consumer-level payment options. Until XRP is across a wide variety of major banks and is tied to credit card terminals in some manner to allow consumer payments, I don't think the growth is going to just stop due to nobody being interested.

As for how they can disperse the escrow in a way that feels right, there is no way to satisfy people and do that without Ripple themselves making a sacrifice financially. Both the donation and burn route are direct financial losses to them. Sure, they could donate to a charity and write off the portion on taxes, but it isn't a profitable business action unless the advertising/news associated with it yielded some kind of growth of equivalent monetary value.

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We have no real idea of the strategy Ripple has in the distribution of XRP.  You can be a "Negative Nancy" and denounce it as corrupt or you can rub a few of your brain cells together and realize that they have a lot more to lose than you do when it comes to XRP.  My bet would be with Ripple over angry forum posters.

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1 minute ago, Benchmark said:

Define ecosystem.

By ecosystem I mean: you , me, all users of xrp and ripplenet.

Ripple is selling their maximum, if they reduce sell pressure price would increase.. if they would increase sell pressire, price would drop.

Ripple is dumping as hardest as they can without reducing xrps price.

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1 minute ago, Kiwi said:

By ecosystem I mean: you , me, all users of xrp and ripplenet.

Ripple is selling their maximum, if they reduce sell pressure price would increase.. if they would increase sell pressire, price would drop.

Ripple is dumping as hardest as they can without reducing xrps price.

Okay, but this is a multi-year operation. XRP needs to be in the hands of people that will use it as intended. XRP can't be mined, so the distribution of the tokens won't end up with the early whales and those who have the lowest electricity costs. Then you have to figure out another way to distribute the tokens, tokens are no good if they belong to Ripple indefinitely. 

Donating it would cause even more backlash, because why would anyone get it for free while we pay for it? Dumping on a bull run happens of course, based on the volume during the bull run. They sold throughout the 2017-2018 bull. Attracting new investors is a no brainer, that's what Ripple marketing is all about. 

In 2017, XRP price remained below 1 cent for a long time, they still sold millions worth of XRP. The price is much higher now and they continue selling. Why should they stop now? And at what price should they resume? These are all questions impossible to answer to everyones satisfaction. Sales based on volume is the best and most predictable way. If Ripple stopped sales and the prices increase, there will always be a dark cloud over the markets because Ripple will start selling again. And then what? People will go batsh!t crazy because they want their billions of profits today and not wait a couple years. Ripple is trying to improve cross border payments, not entertain the average crypto Joe.

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Posted (edited)
1 hour ago, Benchmark said:

Okay, but this is a multi-year operation. XRP needs to be in the hands of people that will use it as intended. XRP can't be mined, so the distribution of the tokens won't end up with the early whales and those who have the lowest electricity costs. Then you have to figure out another way to distribute the tokens, tokens are no good if they belong to Ripple indefinitely. 

Donating it would cause even more backlash, because why would anyone get it for free while we pay for it? Dumping on a bull run happens of course, based on the volume during the bull run. They sold throughout the 2017-2018 bull. Attracting new investors is a no brainer, that's what Ripple marketing is all about. 

In 2017, XRP price remained below 1 cent for a long time, they still sold millions worth of XRP. The price is much higher now and they continue selling. Why should they stop now? And at what price should they resume? These are all questions impossible to answer to everyones satisfaction. Sales based on volume is the best and most predictable way. If Ripple stopped sales and the prices increase, there will always be a dark cloud over the markets because Ripple will start selling again. And then what? People will go batsh!t crazy because they want their billions of profits today and not wait a couple years. Ripple is trying to improve cross border payments, not entertain the average crypto Joe.

The problem is not the sales, it is the people complaining about the sales.  This mindset is diverting interest from the purpose of XRP/Ripple which is to set up an efficient cross border payments service that is frictionless, secure and virtually free of charge.   XRP is not a security belonging to Ripple.  XRP is a token of cross border exchange.

XRP investors that believe they must be made rich above all else are enemies of the objectives of Ripple/XRP.  They may as well go and join Bitcoin Max people who put out that XRP is a scam coin and ponzi scheme.  All these people are achieving is confidence bashing and making the price of XRP go down.

The XRP token is the future of cross border payments and when Ripple sell XRP they are pursuing that objective.

Edited by Julian_Williams

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2 hours ago, Julian_Williams said:

The problem is not the sales, it is the people complaining about the sales.  This mindset is diverting interest from the purpose of XRP/Ripple which is to set up an efficient cross border payments service that is frictionless, secure and virtually free of charge.   XRP is not a security belonging to Ripple.  XRP is a token of cross border exchange.

XRP investors that believe they must be made rich above all else are enemies of the objectives of Ripple/XRP.  They may as well go and join Bitcoin Max people who put out that XRP is a scam coin and ponzi scheme.  All these people are achieving is confidence bashing and making the price of XRP go down.

The XRP token is the future of cross border payments and when Ripple sell XRP they are pursuing that objective.

Instead of calling everyone who complains about ripple dumping on exchanges enemy of xrp project.. you could write how it benefits xrp ecosystem.

Clap.

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Posted (edited)
39 minutes ago, Kiwi said:

Instead of calling everyone who complains about ripple dumping on exchanges enemy of xrp project.. you could write how it benefits xrp ecosystem.

Clap.

You have invented what I wrote - I wrote nothing about "dumping on exchanges".  I said complaining about Ripple selling their XRP (and I will add for your benefit: "and uses inflammatory language suggesting that they are using their income to dump on exchanges", are the enemies of XRP/Ripple).  Ripple are following their sensible and well advertised business practice in using their income to build the infrastructure for the future success of their business.  Their business is not about making money for people who speculatively buy XRP tokens (not connected to Ripple).  Ripple's business is providing frictionless, secure, low cost cross border payments. Anyone who gets in the way of their doing their job is at cross purposes with their company aims and an enemy to their company strategy.

Edited by Julian_Williams

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For what it's worth, Brad always mentioned they had a 60bn XRP warchest they we're going to use to build out the ecosystem, so nothing new to that. It suddenly does get noticed when the XRP price is stagnant compared to others and everybody is depressed because of the long lasting bear market.

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I would think of it this way, on balance it helps the XRP ecosystem but less than the same amount of cash would if it were directed only toward XRP. Here's how I see it:

Ripple is a company and is not synonymous with XRP. Ripple owns a lot of XRP and they use sales of XRP to fund Ripple, not exclusively XRPL-related development. So they are subsidizing their non-XRP business with sales of XRP. What we don't know is what % of each dollar gained from XRP sales goes toward XRPL-related development. David has said more than once that Ripple as a company can succeed without XRP succeeding. How would you feel if they only succeeded because of their sales of XRP? Sales of XRP also likely go toward charitable donations, so the Ripple brand (not necessarily XRP) benefits from sales of XRP. Sales of XRP also fund blockchain curricula around the globe, which is loosely beneficial to XRP but also to other blockchain-related enterprises and assets. The list goes on. How many engineers salaries are funded by sales of XRP XRP though they're integration specialists only for non-XRP tech? Etc.

It would help if it were public how much revenue the rest of their non-XRP business generates but as a private company they don't have to disclose that, and they probably shouldn't. 

So, the Ripple army is subsidizing the non-XRP Ripple business. Remeber that every time you purchase. Question is, where would XRPL be without Ripple? Probably nowhere. The gateway strategy died and without a core company continuing to build, market, and incentivize use of and development on top of XRPL the XRP you hold would likely be worthless.

So while a fraction of XRP sales go toward the XRP ecosystem, the system is likely better off with those sales than without. Ripple continues to try to walk a tight line. I'm not selling currently, but I'm not buying either.

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