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What does the XRP Nasdaq announcement really mean?


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2 hours ago, itcdominic said:

"...About what this means to the crypto community as a whole."

An index for Ripple, alongside indexes for BTC and ETH, is a signal from Nasdaq to its community that there's another contender in the ring which they'd like to introduce. The rest of the crypto community as a whole will benefit in the same way that a rising tide raises all ships.

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First and foremost its creating exposure to the financial markets, also if someone as big as NASDAQ is creating an index for the financial markets then it looks like its starting to create a framework for crypto adoption to the world at large.  This is a step in the direction of mainstream adoption....interesting times ahead.

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1 hour ago, hammertoe said:

As others have said, an index is a key part of many other financial products. Crypto Facilities (bought recently by Kraken) have been the only one so far that have had an XRP index. And obviously Nasdaq is a hell of a lot better know than CF were.

If you are to place some sort of futures trade that says something like "I bet the price of XRP will be $0.375 on 8th May 2019" then you immediately open up the question of 0.375 according to whom? Kraken? Coinbase? Bitstamp? And when on the 8th May? Midnight? 13:59? So you need an 'index price' that everyone can choose to agree on. These index prices are a reference price usually composed of taking some kind of average over multiple exchanges to lessen the risk of manipulation.

So the fact that Nasdaq is producing one, is a vote of confidence for them that they think XRP is going somewhere, and that there is a market for more mainstream financial products to be based on it.

-Matt

This is awesome!  Thank you for the great detailed explanation.

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It's good news, but it will not related to the XRP price whatsoever. XRP will stay in their 30's cents for a long long time. Except:

1. Ripple stop their programmatic sales.

2. Ripple close the deal with big banks (I mean really big and it's done deal)

3. Ripple go public and use the money from selling the stock to fund their operation.

What I'm noticing for the past 1 year is that every time XRP got a good news, I see nothing change. But the XRP Supply is going up every month (this is what programmatic sales doing). Don't get me wrong, It is totally legit. But, I feel that it is not right thing to do for Ripple funding their operation by selling XRP which they bought very cheap, I don't really know what price in 2017 when they bought 55bio XRP but I think It's no more then 10cents (Please someone help me to correct the exact date and the price) and selling 30cents.

 

 

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5 hours ago, FreedomGundam said:

It's good news, but it will not related to the XRP price whatsoever. XRP will stay in their 30's cents for a long long time. Except:

1. Ripple stop their programmatic sales.

2. Ripple close the deal with big banks (I mean really big and it's done deal)

3. Ripple go public and use the money from selling the stock to fund their operation.

What I'm noticing for the past 1 year is that every time XRP got a good news, I see nothing change. But the XRP Supply is going up every month (this is what programmatic sales doing). Don't get me wrong, It is totally legit. But, I feel that it is not right thing to do for Ripple funding their operation by selling XRP which they bought very cheap, I don't really know what price in 2017 when they bought 55bio XRP but I think It's no more then 10cents (Please someone help me to correct the exact date and the price) and selling 30cents.

 

 

This has nothing to do with anything. The entire crypto market is moving in tandem.

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1 minute ago, mrhat75 said:

This has nothing to do with anything. The entire crypto market is moving in tandem.

The correlation of XRP with the rest of crypto will break. 

Fundamental causality will generally take over driving value with time.

"Market Dynamics" as a value driver, will (as they always do) ebb and flow around the market participant's understanding of the fundamentals.

The smaller a market's size, the more heavly weighted "market dynamics" can be over "the fundamentals", in terms of driving price.

This is all so much fun to be observing ;)

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