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

[XRP_Almighty_Q]

On 7/18/2019 at 6:42 AM, Scout said:

 

“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.

Well how would a multiple banks send billions of dollars using XRP?  The price has to increase right?  If a bank bought 100 million XRP and XRP was only $1, that bank would only be able to send 100 million dollars at any given time.  Is this correct?  If that is correct, by that logic, the price would have to be $10/XRP in order for them to send 1B.  However, I don't think banks will hold XRP because it is too volatile.  It's just a vessel for quick settlement, so maybe everything I've written is sh*t.  In fact, given the volatility, it is in everyone's best interest to convert the money back to fiat as soon as possible. 4 seconds.

If I'm a bank, why would I hold XRP?  I'm using XRapid, XRapid uses XRP.  I don't care how XRapid works necessarily.  All I care is that my money is settled in such a way that I take on the least amount of risk.  If you were a bank, would you hold XRP?  Probably not, you would use it for settlement.

Part of me thinks that XRP is the most genius implementation of corporate fundraising that I have ever seen and another part still has hope that I've stumbled upon an investment of a lifetime.

Edited August 12, 2019 by XRP_Almighty_Q

[Guest]

29 minutes ago, XRP_Almighty_Q said:

Part of me thinks that XRP is the most genius implementation of corporate fundraising that I have ever seen and another part still has hope that I've stumbled upon an invest of a lifetime.

It's the greatest corporate fundraiser ever. A small startup turning into a billion dollar company selling a digital penny stock.

[XRP_Almighty_Q]

7 hours ago, Scout said:

“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.

Well... What drives the price of Bitcoin and Ethereum?  The same thing.  So, this is actually saying that XRP's "utility" is meaningless in regards to the price.  It's all perception.  There is no logic.  If that's the case, everyone should be a Bitcoin maxi.

[Skippy]

On 7/18/2019 at 6:16 PM, 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.

Well, yes but with xRapid the banks essentially hold XRP for just a few seconds. 

I still strongly believe that wide xRapid adoption will increase the price of XRP.

1. Market makers holding more XRP

2. Speculation; making XRP more robust and legit

3. Banks eventually wanting to hold XRP for additional savings

4. Perhaps a lesser effect of locking up the XRP since "XRP is too fast" 

[Julian_Williams]

5 hours ago, Skippy said:

Well, yes but with xRapid the banks essentially hold XRP for just a few seconds. 

I still strongly believe that wide xRapid adoption will increase the price of XRP.

1. Market makers holding more XRP

2. Speculation; making XRP more robust and legit

3. Banks eventually wanting to hold XRP for additional savings

4. Perhaps a lesser effect of locking up the XRP since "XRP is too fast" 

the fifth reason is that sending XRP across border creates asymmetric distribution of XRP.  The  XRP accumulate in the wrong places and will have to be bought by MMs who have depleted their stocks to rebalance the distribution.  So whilst the bank to bank transaction may only take 3 seconds the cycle also includes a rebalance MM to MM transaction and the whole cycle may take several hours (depending on how long MMs hold surplus stock before it is resold back to teh destinations that have been depleted of XRP).