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Paradox

MGI and the "Ripple Effect"

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Agreed. I see two scenarios in which a Ripple effect may happen:

1. MGI's Competitors hopping in asap, MGI has little advantage because they are already on board. But Competitors following behind quickly, so maybe this is not MGI is dreaming of. However massive use of xRapid drives price of XRP. (Ripple winner)

2. MGI's Competitors are waiting to see proof it works, meantime MGI taking more market share / more profit / getting bigger (MGI winner). Slower initial increase of xRapid usage, (&price XRP) but even more MGI is proof of success with xRapid. (Ripple winner)

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Posted (edited)

Ripple said it made an initial investment of $30m to acquire MoneyGram shares and a warrant to buy common stock. The price, at $4.10 a share, reflected a significant premium over MoneyGram’s closing price of $1.45 June 17th.  MoneyGram may also choose to have Ripple invest an additional $20m at a minimum price of $4.10 a share. Under the deal, MoneyGram will use Ripple’s XRP cryptocurrency and xRapid, a platform that handles XRP transfers.

Edited by T800

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1 hour ago, Paradox said:

What do you all think?   Do you think the effect Ripple has had on MGI's stock price will be an additional incentive for other public companies to hop on board?   I am curious to hear your thoughts.

Not for a while, is my best guess. If they can get revenue positive, then it will matter.

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The Bitso liquidity index has dropped back a bit, but it is still an impressive growth.  The rapid growth was put down to Mg starting to use the Mex corridor

https://docs.google.com/spreadsheets/d/1pZ2POpljERK-oV3rusaCmq58U2badn5i9WOCIP9Wtmg/htmlview#gid=1888946776

Galgitron has picked up a similar pattern over a longer time span - see his commnets.  Galgitron puts the drop back he has observed to the activities of a "single actor"

As Galgitron says, we are still at the crawl stage. 

 

Quote

Galgitron's comments : What I take from the remittance plummet, combined with the strong Monday-Friday activity signature, is that virtually all of that weekday activity was from a single actor. For reasons unknown, that actor has nearly stopped. This isn't a collapse, it's one actor stopping 1/3. A healthy volume wouldn't show weekday spikes, so if anything, we know that we are still in the 'crawl' stage, and always have been. Was difficult to see in the beginning but we can now tell that MoneyGram activity is still inconsequential in the overall picture 2/3. Again, not to downplay the great progress being made with MG, but real progress has been obscured/exaggerated by the single actor. The larger payments dropoff merely shows that was all speculation, not utility 3/3

 

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1 hour ago, Paradox said:

I have posted these thoughts before on other parts of the forum, but I wanted to get a general feel from others if my thoughts are misplaced:

Since MoneyGram (MGI) announced its partnership with Ripple and its intent to use xRapid, its stock price has jumped ~155% and is currently up around 10% so far this morning.   Now yes, a significant amount of this price bump may be due to speculation - however if you have done your research and read Ripple's XRP cost savings paper, you will understand that the use of xRapid can significantly lower cross-border transactional costs which will ultimately benefit the company's bottom line.

However - that isn't my point.   I also expect to see what I will refer to as the  "Ripple Effect" occur in the traditional markets as more publicly traded companies partner with Ripple.  The massive rise in stock price must be getting the attention of other players in the industry.   MGI is really the first example of how just partnering with Ripple can drive shareholder value.   However, it remains to be seen if this effect will be long-lived.

What do you all think?   Do you think the effect Ripple has had on MGI's stock price will be an additional incentive for other public companies to hop on board?   I am curious to hear your thoughts.

Hope so I bought some MGI...to high mind, but still quite a bit less than Ripple paid.

MGI isn’t make or break for ripple but it’s a bloody important milestone. If MGI start to improve financially and market share wise over the next year after persistent downturn for a while now then I can’t imagaine why people wouldn’t be queuing up for their services.

i also don’t think ripple are daft enough to go into this as a POC they have tested and must be very confident in the outcome otherwise why do it at all.

the fuddters will say to boost XRP price but that didn’t happen so now there really are no excuses it will work or it won’t. I like 50/50 odds for the potential returns on offer

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1 hour ago, Paradox said:

I have posted these thoughts before on other parts of the forum, but I wanted to get a general feel from others if my thoughts are misplaced:

Since MoneyGram (MGI) announced its partnership with Ripple and its intent to use xRapid, its stock price has jumped ~155% and is currently up around 10% so far this morning.   Now yes, a significant amount of this price bump may be due to speculation - however if you have done your research and read Ripple's XRP cost savings paper, you will understand that the use of xRapid can significantly lower cross-border transactional costs which will ultimately benefit the company's bottom line.

However - that isn't my point.   I also expect to see what I will refer to as the  "Ripple Effect" occur in the traditional markets as more publicly traded companies partner with Ripple.  The massive rise in stock price must be getting the attention of other players in the industry.   MGI is really the first example of how just partnering with Ripple can drive shareholder value.   However, it remains to be seen if this effect will be long-lived.

What do you all think?   Do you think the effect Ripple has had on MGI's stock price will be an additional incentive for other public companies to hop on board?   I am curious to hear your thoughts.

I think we should get a better sense on their quarterly reports, probably in a year or so.  If profitability increases substantially, then yes I absolutely think that you are correct and others will notice.  Double bonus if institutions have entered the crypto space in earnest, because they may just look to invest in XRP at that point.  Right now, I don't think xRapid is having any material effect on MGI, as it seems very early on.  Not sure why the price increase, but I agree that it could be due to speculation. 

I have been looking to establish a position in MGI but it keeps going up lol.  I wish I had that same problem with XRP... the entry keeps getting better and better there :rolleyes:

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7 minutes ago, panmores said:

So what will?

Don't listen to @Cooliozxrp,  he/she has no idea what he/she is talking about.  

David addresses this question directly here:

https://www.quora.com/If-a-large-amount-of-banks-were-to-adopt-xrapid-and-started-using-xrp-how-would-that-impact-the-tokens-value/answer/David-Schwartz-9?srid=uwf7

And answers implicitly here:

 

 

 

 

 

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2 hours ago, Paradox said:

What do you all think?   Do you think the effect Ripple has had on MGI's stock price will be an additional incentive for other public companies to hop on board?

No, because that increase came with low trading volume. These stocks probably bought same people who are stuck with xrp lol

2m trade volume is nothing.. 

 

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2 hours ago, Kiwi said:

 These stocks probably bought same people who are stuck with xrp lol

2m trade volume is nothing.. 

 

What is it you are trying to say? Been a long day for me but you make less sense than no sense. 

Maybe read through what you post and add certain words you’ve obviously missed out. 

 

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9 hours ago, Cooliozxrp said:

David already said xrapid will not affect xrp price...

And when did he say this? Source please or else please refrain from your seemingly incessant negative posts. 

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