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AMA with Nicolas Steiger, founder of FlashFX, Australian user of ODL


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Thanks again for you continued engagement Nicolas.  You are a river to your people...    :) 

In the past David Schwartz has said that entities could lower their costs even further by retaining XRP from a previous trade and utilising it in the next opposite direction trade...  cutting out one half of the spread and fee.

That doesn’t seem possible in the current ODL model.  @Nicolas is that something you had considered doing, or is possible other than manually, with current Ripple software?

Does Ripple ODL software allow for a ‘half’ transaction?  In other words you already have the XRP?

A follow on from that is can you see entities in future keeping XRP as a treasury function for use in trade payments?

Thanks very much for your time and generous inputs.

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Agree a bit of a unnecessary rant but hey its weekend.  A stakeholder as you put it has an interest, so I dont think some would want to self-harm and dump unnecessarily and foolishly. If someone

That's fine. This can become active anytime someone wants to ask a question.  We're in the process to integrate with a number of RippleNet partners and have a growing pipeline of new names every

I am not across all the details above and even though you see more volumes, this might still be part of testing with a subset of clients, segment on their end. We're helping some market makers to move

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14 hours ago, Nicolas said:

We're helping some market makers to move excess funds to some destinations, so payments can be made in the local MXN or PHP currency.

Are the market makers providing XRP liquidity currently profitable - without any subsidies from ripple or other organization affiliated with them?

Is it generally the case that the market makers find it easier to make a profit during times of low volatility? (or do they prefer it to be highly volatile?)

 

15 hours ago, Nicolas said:

There is still a fair bit of liquidity re-balancing required while flows are one directional only. Ideally in future we have even flows in all corridors but practically this is not possible.

If rebalancing outside of the ODL markets is necessary, then surely it seems like someone is not doing a very good job of onboarding customers to ripplenet that want to trade in the opposite direction? If it is necessary to leave the ODL markets to rebalance the corridor, then that implies that it is actually cheaper to not use ODL (at least for the return path trades - which I find troubling). If markets are unbalanced, then currencies change value relative to each other - can you see a time when traffic via ODL actually has a measurable effect on the forex markets such that one sided traffic on ODL causes currency valuations to shift. Since ripple are targeting illiquid corridors initially, I presume this could actually happen much faster than one might expect. Is anyone arbitraging that yet?

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22 hours ago, Nicolas said:

I am not across all the details above and even though you see more volumes, this might still be part of testing with a subset of clients, segment on their end. We're helping some market makers to move excess funds to some destinations, so payments can be made in the local MXN or PHP currency. This increase in volume will attract new entities seeking to participate, thats what I am saying. There is still a fair bit of liquidity re-balancing required while flows are one directional only. Ideally in future we have even flows in all corridors but practically this is not possible. There is more flows going into MXN and PHP then from these currencies. If we take AUDUSD or AUDGBP, the flows should be bi-directional and even out, ie less re-balancing needed. There are a number of factors at play and I am not able to know and see all of them, so hard to dissect fully. Hope I am making sense

Is all of your flow from USD to AUD using ODL, or is it just a portion?  If not, why not?  Also, have you found yourself limited in corridors that ODL is opened (Other than To USD as we understand the reg nightmare)

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30 minutes ago, XRPDaddy69 said:

Is all of your flow from USD to AUD using ODL, or is it just a portion?  If not, why not?  Also, have you found yourself limited in corridors that ODL is opened (Other than To USD as we understand the reg nightmare)

At the moment only a portion until we have some collection and distribution entity in the US. More ODL destination will open soon and we can divert traffic, yes. 

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2 hours ago, Nicolas said:

At the moment only a portion until we have some collection and distribution entity in the US. More ODL destination will open soon and we can divert traffic, yes. 

Thank you!  Is this answered at all by the new announcement of Intermex as they are licensed in all 50 states?

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Looking at their site https://corporate.intermexonline.com/en/  and I can see that statement

"We are licensed in all 50 states, D.C. and Puerto Rico through more than 6,000 independent agents and 33 branches."

Not sure that really qualifies through agent and branches for what the network needs. Talking to the Ripple team on Monday and raising the US issue, this has not come up as a solution. So they might be licenced to collect in those 50 states to send to South America (looks like their focus), they do not look to be able to use 'distribute' into the US. Agents and branches sounds much like a 'cash solution' not online payments, so no. More USD - South America flow. Thats is still a good outcome. More flow, more distribution and new entities.

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58 minutes ago, Nicolas said:

Looking at their site https://corporate.intermexonline.com/en/  and I can see that statement

"We are licensed in all 50 states, D.C. and Puerto Rico through more than 6,000 independent agents and 33 branches."

Not sure that really qualifies through agent and branches for what the network needs. Talking to the Ripple team on Monday and raising the US issue, this has not come up as a solution. So they might be licenced to collect in those 50 states to send to South America (looks like their focus), they do not look to be able to use 'distribute' into the US. Agents and branches sounds much like a 'cash solution' not online payments, so no. More USD - South America flow. Thats is still a good outcome. More flow, more distribution and new entities.

Hi Nicolas,

We've had prior sponsorship from the likes of Gatehub. What gateway volume and security do you have that any bank doesn't from both private and corporate? Are you bringing RippleTrade back as a gateway also? I've always foreseen money/liquidity flows through the highest bidder which means the volume needs to be there to bid high and charge low. It's the Walmart FX model.

Thank you for any clarification and your time here, it is appreciated.

Edited by 1776isHere
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6 minutes ago, 1776isHere said:

Hi Nicolas,

We've had prior sponsorship from the likes of Gatehub. What gateway volume and security do you have that any bank doesn't from both private and corporate? Are you bringing RippleTrade back as a gateway also? I've always foreseen money/liquidity flows through the highest bidder which means the volume needs to be there to bid high and charge low. It's the Walmart FX model.

Thank you for any clarification and your time here, it is appreciated.

Hi mate, sorry not sure what you are asking. We don't comment on volume and with our gateway, that is locked down securely. We are not offering any custody so not sure what the link to Gatehub refers to. We offer a multitude of solutions via traditional Chanels, off and on-ledger payments. I am sorry don't your follow your Walmart example. 

Edited by Nicolas
typo
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7 minutes ago, Nicolas said:

Hi mate, sorry not sure what you are asking. We don't comment on volume and with our gateway, that is locked down securely. We are not offering any custody so not sure what the link to Gatehub refers to. We offer a multitude of solutions via traditional Chanels, off and on-ledger payments. I am sorry don't your follow your Walmart example. 

Thanks Nicolas, really appreciate the response. Basically the question was how do you make money? And margins aren't anyone's business, the issue for start ups in XRP has been so far, how do I make enough money to stay operating. So if Ripple goes low liquidity corridors for the next couple years there would be a series of testnets as gauges of the market at retail prices to prove flow, and not revenue to the company.

 

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15 minutes ago, 1776isHere said:

Thanks Nicolas, really appreciate the response. Basically the question was how do you make money? And margins aren't anyone's business, the issue for start ups in XRP has been so far, how do I make enough money to stay operating. So if Ripple goes low liquidity corridors for the next couple years there would be a series of testnets as gauges of the market at retail prices to prove flow, and not revenue to the company.

 

hi, you can check out our margins online on our website. sorry I am not following your thought process or can understand your questions/remarks. Lets give others the chance to ask coherent questions. Thanks for the engagement. Good luck.

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3 hours ago, 1776isHere said:

 

I find this comment very rude and have reported your post.   Nicholas has been very generous and helpful to those of us here and does not deserve this sort of treatment.  Don't contribute if you have nothing sensible to ask.

Edited by Gilligan
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