Former Ripple employee speaks out, XRP price doesn’t reflect xRapid use

[Scout]

 

“Even if every bank used xRapid the price of XRP wouldn’t necessarily increase. The thing that drives the price of XRP is people’s perception of adoption, which would probably increase the price,” the source said.

https://cryptoslate.com/former-ripple-employee-speaks-out-xrp-price-doesnt-reflect-xrapid-use/amp/

Looks like XRP's price is whatever we want it to be. I'm selling my XRP for 1000 per XRP any takers?

Edited July 18, 2019 by Scout

[xrp_is_love_xrp_is_life]

“Even if every bank used xRapid the price of XRP wouldn’t necessarily increase."

 

RIP

[aavkk]

Uhh, from the article below.  When was this written?

"According to Ripple, three out of the top five money transfer agencies in the world have expressed interest in using XRP as a liquidity solution by the end of 2018. Western Union and MoneyGram have already started pilot projects for xRapid."

[Andy_79]

Questioning my investment more and more.

[Trentsteel]

13 minutes ago, aavkk said:

Uhh, from the article below.  When was this written?

"According to Ripple, three out of the top five money transfer agencies in the world have expressed interest in using XRP as a liquidity solution by the end of 2018. Western Union and MoneyGram have already started pilot projects for xRapid."

Yer, seems like an old article and nothing new which hasn't been said before

[Caracappa]

7 minutes ago, Andy_79 said:

Questioning my investment more and more.

So you base 'the feeling' of your investment on some articles on the internet. In this case 'an unnamed employee of Ripple' in an article that concludes that usage of Xrapid does not increase price, but the feeling of adoption does. 

There have been many topics allready concluding that an Xrapid transaction on itself does not immediatly make the price go up, as it goes down somewhere else when converted back to fiat. But the need for XRP's to do these Fiat>XRP>Fiat swaps on a bigger scale do. Especially when speculator on XRP are not giving the market their needed XRP's below a certain price. It would not perse bigbang i guess, that would be the speculators job if the want to have these potentially many used XRPs.

Everything in cryptoworld goes up and down currently, and that without any usecase at all... Pure speculation. Imagine what would happen if something actually had an increasing usecase and is 'needed' for something to function.

[FOOD]

If somebody read that article and it had any effect at all on their opinion of XRP (either positive or negative)....

I would recommend for them to sell immediately! (if they even have XRP to begin with)         

If anybody is reading my post and has any type of confusion about what I am writing.... 

then please refer to second line above.

If you find yourself reading this over and over again due to the 4th line...

refer to the second line....

[quan]

If every bank uses xrp, xrp would be priceless.

Edited July 18, 2019 by quan

[wrongbenson]

To me, that should be common sense. People's perception and sentiment is what drives the price;
If Bank of America were to announce they were using xRapid the price of XRP would 100%, without any doubt, increase. If they were to use xRapid and not make an announcement, XRP price would probably be relatively unchanged.

That is even more true for all other crypto about perception and sentiment - especially at this nascent stage where crypto is not mainstream and there isn't wide-spread real-world use. 

 

Edited July 18, 2019 by wrongbenson

[matteo]

My anonymous source at Ripple confirmed me that even if a few banks uses xRapid, the price of XRP will necessarily increase. He just wants to remain anonymous you know.

[Julian_Williams]

Well the ex employee is simply wrong - of course buying and selling XRP asymmetrically across borders locks up supply and creates demand and pushes the price up.  This is such old FUD

Susan Athey- director of Ripple published a study - it used to be available at xrpbalance.com but it seems the link no longer works.  The results of her study gave estimated value of several hundred dollars per token if XRP took even a small percentage of the SWIFT market.  But if you are stupid enough to believe this sort of stuff you should sell your XRP.

[aavkk]

Please understand the errors by omission here.  The original strategy involved having banks hold XRP- the team realized that wasn't going to happen right away so they went after remittence firms and positioned XRP adoption to happen without banks/remittence companies even needing to hold XRP.  This is genius (see details on xcurrent v 4.0 and multi-hop) and will allow (admittedly mostly theoretically at this point) a steady increase in XRP liquidity via adoption.  Yes, we are still waiting on meaningful XRapid volume and its something I'm very much looking forward to.  More liquidity yields greater utility and adoption.  Down the road (my guess 2-3 years from today) banks and remittence companies will be incentivized to hold their own pool of XRP.  This is not my speculation but its been publicly mentioned by David Schwartz and was echoed by Bob Way.  

[aavkk]

1 hour ago, Julian_Williams said:

Well the ex employee is simply wrong - of course buying and selling XRP asymmetrically across borders locks up supply and creates demand and pushes the price up.  This is such old FUD

Susan Athey- director of Ripple published a study - it used to be available at xrpbalance.com but it seems the link no longer works.  The results of her study gave estimated value of several hundred dollars per token if XRP took even a small percentage of the SWIFT market.  But if you are stupid enough to believe this sort of stuff you should sell your XRP.

I believe this is what you were referring to.  She made some very conservative adoption assumptions (hard to predict XRP utility in different use cases particularly FX) which resulted in her rather low multi-year price estimate ($8-$32).  

https://s3-us-west-1.amazonaws.com/fundamental-valuation-framework-for-cryptoassets/A+Fundamental+Valuation+Framework+for+Cryptoassets_June+2018.pdf

[XRPage]

https://www.reddit.com/r/Ripple/comments/6irqhs/mathematically_speaking_what_is_the_highest_price/dj8qctq?utm_medium=android_app&utm_source=share

 

Ask @JoelKatzif he still thinks what he said back in 2017. Based on recent events i think price won't be affected that much based on usage or it won't be adopted as they expected 2 years ago. Otherwise no point on selling now. 

[Kpuff]

As we have heard many times before that Xrapid volume is not an indicator of price increase. But what will increase xrp price is market makers buying xrp on the market to facilitate Xrapid transactions. The more fiat currencies that are used to trade against xrp the more market makers will get involved. @JoelKatz has said this many times. From what I see there are very few market makers involved at this time. But the more regulations that take place worldwide the more market makers can join the game.

One of my concerns is what if market makers buy xrp on the OTC exchanges. Definitely is one concern of mine.