Jump to content
JannaOneTrick

Liquidity Index on Bitso XRP/MXN

Recommended Posts

38 minutes ago, hallwaymonitor said:

I have a good feeling about this liquidity index. I think the trend will keep pushing upwards for at least a few weeks or so.

a) Today was very hectic day what comes to the txs from Bitstamp to Bitso. Lots of 100k XRP txs.

b) Q3 will come to its end in two weeks and that tends to put Bitso's XRP/MXN volume to an extra gear.

c) A couple of new xRapid suspected destination tags have recently started to send from Bitstamp to Bitso.

d) And this...

 

Furthermore, I don't know about other people, but today was payday for me. So not only does it make sense that today is hectic, but it's interesting that the surge of activity was from noon to one, which could indicate folks going to Moneygram during their lunch break to send money home.

Will be interested to see if we get another surge of activity around the end of the work day today.

Share this post


Link to post
Share on other sites
4 hours ago, hallwaymonitor said:

d) And this...

Thanks heaps.  That’s the first look I’ve seen at actual price movement by real world XRapid.

It raises a number of questions...     can you share any thoughts you’ve had about this?

Share this post


Link to post
Share on other sites
11 hours ago, Tinyaccount said:

Thanks heaps.  That’s the first look I’ve seen at actual price movement by real world XRapid.

It raises a number of questions...     can you share any thoughts you’ve had about this?

First of all there is no guarantee that it was xRapid. I guess (and hope) it was xRapid but I could have been wrong. However, the focus here is to monitor development of the value transfers from USD to MXN within ~2 minutes interval without pre-funding of MXN. My hypothesis is that the more we will see these kind of value transfers the better chance xRapid is involved in them and vice versa. Also higher count and volume of these kind of value transfers will correlate positively with the liquidity in Bitso that is prerequisite for xRapid to serve big players such as MoneyGram.

I was positively surprised that at least this instance I tweeted about did not drop the XRP/MXN price during the whole process (~2 minutes interval). The price fluctuated and each of the traded string (4 in total) started with constant price 4.91 XRP/MXN as if it had been predetermined before the process even started. This is a complex topic and hence it goes very deep if you start to ponder are there designated market makers in Bitso to provide liquidity and how they source liquidity for themselves whilst being profitable.

 

Share this post


Link to post
Share on other sites
5 minutes ago, hallwaymonitor said:

The price fluctuated and each of the traded string (4 in total) started with constant price 4.91 XRP/MXN as if it had been predetermined before the process even started. This is a complex topic and hence it goes very deep if you start to ponder are there designated market makers in Bitso to provide liquidity and how they source liquidity for themselves whilst being profitable.

Yes it’s very interesting.  I have asked a few times of Ripple employees if there is any ‘locking’ going on in a XRapid transfer.  Never got an answer.  The repeated starting price does seem to have some characteristics of at least a ‘locked’ value.

Before anything much was known about XRapid (which is even now still a dark horse) I was speculating that the asymmetrical nature of the values between the small amount inflow and the delayed netted amount backflow might tend to raise prices.

I’m still in the dark.  Thanks for starting the process of shedding light.

Share this post


Link to post
Share on other sites
6 hours ago, Tinyaccount said:

Yes it’s very interesting.  I have asked a few times of Ripple employees if there is any ‘locking’ going on in a XRapid transfer.  Never got an answer.  The repeated starting price does seem to have some characteristics of at least a ‘locked’ value.

Before anything much was known about XRapid (which is even now still a dark horse) I was speculating that the asymmetrical nature of the values between the small amount inflow and the delayed netted amount backflow might tend to raise prices.

I’m still in the dark.  Thanks for starting the process of shedding light.

The locked value might depend on the associated Destination Tag because they differ greatly between each other. Some xRapid suspected DTs land on XRPL in strings right after each other whereas some DTs land on individually several minutes between each other. Also value differs greatly between DTs. I can think that the reason for this phenomenon is either Ripple is still trying to figure out the best practice of xRapid txs or different use cases (remittance, treasury operations, etc.) behind the xRapid txs.

I used to think xRapid will raise XRP price in Bitstamp where it is bought and on contrary decrease the price in Bitso due to selling it. Now I suspect that the price will stay pretty much the same before and after the xRapid txs in Bitso. I need to gather more evidence is that the case in Bitso. Also I should monitor Bitstamp trades during xRapid txs does the price stay the same or raise there.

Share this post


Link to post
Share on other sites
2 hours ago, Julian_Williams said:

what do you tech guys think of this new version of a liquidity index?  https://twitter.com/hmatejx/status/1170005598160805888/photo/1

 

 

I think that is the best way to follow xRapid long-term trend right now. Galgitron's charts monitor overall XRP txs which are still mostly speculative and hence not yet good way to gauge xRapid txs IMO.

Share this post


Link to post
Share on other sites
On 9/14/2019 at 4:38 AM, Tinyaccount said:

Yes it’s very interesting.  I have asked a few times of Ripple employees if there is any ‘locking’ going on in a XRapid transfer.  Never got an answer.  The repeated starting price does seem to have some characteristics of at least a ‘locked’ value.

Before anything much was known about XRapid (which is even now still a dark horse) I was speculating that the asymmetrical nature of the values between the small amount inflow and the delayed netted amount backflow might tend to raise prices.

I’m still in the dark.  Thanks for starting the process of shedding light.

It really doesn't. While there is buying pressure on the outgoing exchange, there will be equally sell pressure on the incoming exchanges. Its almost like wash trading for price.

Share this post


Link to post
Share on other sites
1 hour ago, Julian_Williams said:

Looks like a Pattern?

Payments build towards the end of the month and peak at about 13 - 14th and then drop off

Lets watch to see if the pattern repeats itself in October

 

Screenshot_2019-09-17 liquidity-index.jpg

Excellent....I've been hoping we'd begin to see something like this. OOL.

Share this post


Link to post
Share on other sites

This last post explains why market makers will eventually want XRP at much higher prices than we see today (if indeed they aim to provide liquidity for large transactions).  

Share this post


Link to post
Share on other sites
59 minutes ago, JeffXRP said:

why market makers will eventually want XRP at much higher prices than we see today

MMs don't care necessarily about the price of XRP because they are trading XRP to fiat back and forth. The greater profits for them are charging the "fee" (ask/bid price) because that is where their biggest profits lie. They are not investment firms. Higher prices of XRP are an after thought in their minds. 

Share this post


Link to post
Share on other sites

Yes but if they must hold xrp to make markets (I’m still unsure on this), then it’s better if they can accumulate at lower prices now.   And Ripple could help make that happen. And the more they have at higher prices the greater volume of transactions they can handle. 

Edited by JeffXRP
Typo

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...