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Does progmatic sells benefits XRP ecosystem?


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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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9 minutes ago, lucky said:

You do know that 12.5 BTC is "minted" by miners every ten minutes, that they have to sell to cover their energy bill? 1800 BTC every day, that's 9.3 million USD worth of coins being "dumped" every day.  3.4 billion dollar per year at current prices, seven times as much as Ripple is selling XRP.

Why do you compare in fiat? Doesn't make sense to me as you don't calculate  e.g. USD inflation in EUR..

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11 minutes ago, zerpian said:

Why do you compare in fiat? Doesn't make sense to me as you don't calculate  e.g. USD inflation in EUR..

Aren't we talking about distributing coins in return for fiat?

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Quote

 

Quote:  sjoelkatz (reddit)

19 points · 1 year ago · edited 1 year ago

Significant releases of XRP from Ripple happen two different ways:

One is programmatic sales onto open markets. This is done by third parties that Ripple employs to use agreed algorithms to execute sales, usually by market making that is biased in favor of a net sale. Ripple does not have direct control over these sales and cannot adjust their timing on a short term basis. The sales preference is approximately 20 basis points, 0.2%. Aside from rasising revenue from Ripple in a way that reduces the opportunity for manipulation, this also improves XRP liquidity and tightens XRP spreads on those exchanges.

The second way is institutional sales and partnerships. These do not take place on open markets and typically come with lock ups and other requirements. It's reasonable to expect that this type of release puts less negative pressure on the price than a comparable sale on the open market.

It is true that hype of any kind drives XRP exchange volume which will increase the amount of programmatic sales that Ripple does. However, our incentive is heavily biased in favor of the long-term value of XRP because our stash will last us some time. And large, sharp drops in the price of XRP increase the cost of holding XRP, which makes our intended use case less competitive.

Ripple has never had a dividend. Every penny raised for Ripple through XRP sales or any other source is either still held by Ripple or was spent to grow and operate the company.

These rules, and the rules Ripple has on employee, board member, and adviser XRP sales, are not rules Ripple made pursuant to any regulatory requirement. And they're not primarily rules that Ripple made out of the goodness of our hearts. These kinds of controls and standards were demanded by some of our partners and made part of our agreements with them, particularly agreements that involved partner use of XRP.

https://ripple.com/insights/q3-2017-xrp-markets-report/

 

 

Edited by Julian_Williams
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5 hours ago, zerpian said:

Why do you compare in fiat? Doesn't make sense to me as you don't calculate  e.g. USD inflation in EUR..

Energy bills are denominated in fiat. This forces the exit he describes. BTC is not a unit of account like USD or EUR. 

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6 hours ago, lucky said:

You described it yourself. Replace "dumping" with "selling", and you described how XRP is being dispersed, just like Bitcoin.

You do know that 12.5 BTC is "minted" by miners every ten minutes, that they have to sell to cover their energy bill? 1800 BTC every day, that's 9.3 million USD worth of coins being "dumped" every day.  3.4 billion dollar per year at current prices, seven times as much as Ripple is selling XRP.

Thank you for your answer but I am not interested in Bitcoin. Miners need to sell their BTC so they can keep their network working. We can see from BTC what happens with miners if price goes down. They bankrupt.

So, keep selling pressure can destroy them. Can the vety same thing happen to xrp because of Ripple?  Yes ofcouse, and I think ripple is close to do that.

Since price is fixed for 3 months, that means they sell max they can. It is about time before they milk all the money and price drops. What can prevent this? Progress, do we have it? Yes. Is it enough for Ripple so they can keep selling at this rate? Absolutely NOT.

 

 

EDIT: Last year when the price dropped to 25c they stopped stelling. Why did they stop? So price can recover or they thought they cant target new people so there was no point in selling? We both know the answer,!!! Which means they do CARE about price so they can KEEP SELLING. Low price = no NEW investors. PERIOD

Why now, when the price is literally 10% higher, fake volume is probably also higher they sell max they can? They even INCREASED sell pressure. Why not reduce sell pressure so price goes up few CENTs, attract NEW people with that and ACTUALLY make XRP DISPERSE instead of dumping it like there is no tomorrow?

EDIT2: I wonder how long that link is broken. Checking number of new account can easily kill your argument that with progmatic sells they target new people.

 https://xrpcharts.ripple.com/#/accounts

Edited by Kiwi
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When you step back and consider the selling of XRP by Ripple , the whole thing just seems wild. Here is a made up currency that has some really nice features for transactions no doubt, that was built from he sweat of engineers many years ago, and now there is a market for it and they can sell it to find their business operations. 

That allows them to exponentially build the ecosystem and someday XRP could be used for billions or trillions of $s of transactions.

The whole thing is mind boggling really.

Kudos to Ripple.  As for holding XRP we will just have to see what this amounts to over the next 5-10 years.

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17 hours ago, lucky said:

Aren't we talking about distributing coins in return for fiat?

I see your point of view. It’s a general problem in crypto, there are no standardized names. I mean we still cannot agree what we’ve bought: currency, commodity, asset, tokens,…

Anyway, your point of view causes two problems:

-what about newly minted coins, not put into circulation/distributed; miners are speculating too.

-the main purpose of knowing the distribution/inflation rate (or whatever you’d like to name it), is to have a predictability of the future. If you express this rate in fiat, it becomes a contraindicative metric because of the volatility in crypto, hence worthless.

Having said that, Ripple published some time ago a graph, attempting to give some predictability on the distribution. I criticized several times the fact they are nowhere coming close to the figures presented in that graph. This is actually the point to be criticized, IMHO. The sales seem otherwise quite arbitrary. 

I think the best formula, actually very simple, is: newly minted coins/circulating supply. This way you can compare one coin with another one, regardless the value in fiat.

Edit: added following tweet (weird the graph has been removed from the post):

 

 

 

 

Edited by zerpian
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1 hour ago, zerpian said:

I see your point of view. It’s a general problem in crypto, there are no standardized names. I mean we still cannot agree what we’ve bought: currency, commodity, asset, tokens,…

Anyway, your point of view causes two problems:

-what about newly minted coins, not put into circulation/distributed; miners are speculating too.

-the main purpose of knowing the distribution/inflation rate (or whatever you’d like to name it), is to have a predictability of the future. If you express this rate in fiat, it becomes a contraindicative metric because of the volatility in crypto, hence worthless.

Having said that, Ripple published some time ago a graph, attempting to give some predictability on the distribution. I criticized several times the fact they are nowhere coming close to the figures presented in that graph. This is actually the point to be criticized, IMHO. The sales seem otherwise quite arbitrary. 

I think the best formula, actually very simple, is: newly minted coins/circulating supply. This way you can compare one coin with another one, regardless the value in fiat.

Newly minted? Minting is a deflationary system, I will stay far away from any coin where additional minting is happening.

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5 hours ago, zerpian said:

-what about newly minted coins, not put into circulation/distributed; miners are speculating too.

Those coins are still distributed: paid for with electricity.

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30 minutes ago, lucky said:

Those coins are still distributed: paid for with electricity.

So according to this logic, XRP not in escrow (6B or 7B) has already been distributed, where as Ripple labels it as undistributed? 

Or do you mean there is no distribution rate for XRP because everything has already been minted?

 

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2 hours ago, zerpian said:

So according to this logic, XRP not in escrow (6B or 7B) has already been distributed, where as Ripple labels it as undistributed? 

Or do you mean there is no distribution rate for XRP because everything has already been minted?

With distribution I mean transfer of coins from the few to the many. Satoshi created mining to distribute, the XRP founders created a company for that.

All bitcoins were created at genesis as well, they're not really minted, that's a fairy tale.

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