Jump to content

Staying the course in remittances and SME payments.


Recommended Posts

22 minutes ago, hallwaymonitor said:

You might be right. I think something negative and surprising happened recently and it caused the ODL total volume to drop from 20 millions USD to just 3 million USD in a day. That's -85% decrease in a few days and I won't expect it to recover back to the 20 million USD levels any time soon. Of course Ripple knew people would notice and hence they released their announcement as a warning.

I have been monitoring ODL volume for quite some time. Even before this and the Covid I was disappointed how long it took to grow the ODL volume and open new ODL corridors. Ripple had to pay for MGI to build up XRP/FIAT liquidity for ODL. This probably wasn't sustainable and they pulled the plug (?) Anyways, now 85% of ODL volume is gone in the middle of the worst pandemic in 100 years. Many people sending money to home won't send any when they get fired. Many people won't take new loans (Ripple's new lending product) due to shaky job markets. Many companies won't invest new RippleNet software in these uncertain times when they are scrambling with their basic stuff. Sad but true.

https://utility-scan.com/#/dashboard

image.png.3ead76aebc761a3b3ef1ab138ed0d7b1.png

 

First, where can you find this ODL data, the website?

Second, yes people will get fired, but maybe in the worst countries there will be migrations of those people to other countries once the global economy picks back up and then as the economy improves, this should help boost the remittance market as successful economies will be more scarce, and people can't afford to use legacy system to send remittances as much, they will look to save as much money as possible, so maybe Ripple/XRP has a role to play in this.

Edited by enrique11
Link to post
Share on other sites
  • Replies 168
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

It's very worrying. If ODL isn't cheaper than conventional moneymarkets, then it won't get used. Dropping from 15m a day to 2m was  a massive change yesterday and after reading that report last night

I've watched a few of her videos now, and mostly she seems to be lucid and makes good points - but in this video she didn't say anything of value or interest to me. I realize that she has no idea of t

Interesting comments from David Schwartz regarding yesterday's article from Ripple hopefully providing further clarity. Per the comments, my take is that ODL volume has primarily been comprised of tre

Posted Images

1 hour ago, Frisia said:

This is the point! As of now higher value payments cannot be sustained due to a lack of volumes. Ripple was hoping that the MG deal would have pulled enough liquidity in the ODL corridors to attract others and make the system self sustained. Obviously it did not work out this way, as it was forced and not sustainable at the end.

So what happens is that more players should step in and drive the volumes rather than one big player (MG) which isn't healthy anyway. So indeed a step back by lowering the threshold. I'm not happy with it but at the end it's a healthy one and it will take more time.

In fact, I was quite surprised that the threshold (vs 100k) for payments went up so quickly.

And it was already going this slow :) 

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

Good point from Janna that the ODL volume shrank with XRP/AUD pairing as well. Those 12,300+ XRP txs in the picture used to be way bigger. Probably the ODL volume shrank with all XRP/FIAT pairings. Someone flipped the switch but not the way we hoped for.

https://xrpscan.com/account/rU7xJs7QmjbiyxpEozNYUFQxaRD5kueY7z

image.thumb.png.132d9b03668f482bd001f943fc2e5182.png

 

Hi, Nicolas @Nicolas would you mind to comment please? 

Link to post
Share on other sites

The plan, when they went into MGI, was to reduce tied up cash (nostro/vostro) / optimize it.

Ash is a board observer at MGI, on Ripple's behalf - so he is constrained in what he can say.

What he did say was that larger, treasury management payments were winding down, now...

And that the focus would be shifting, now, to small, discrete, on-demand liquidity transfers...

I suppose that one may read into that what one would like to see, either negative or positive:

"Large volume dropped;  it failed!" vs "Large volume dropped;  the ODL system is optimized."

(It's like optimizing a hard drive - the first time, it's slow and moves big chunks of your data.)

(Once you've done it, though - subsequent optimization is fast and moves only what is new.)

Commence either to celebration or to panic;  it's up to you.

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

Not sure what your point is in relation to my post

The 5% of projects that are "still active" are basically having no volume. "hey man, we only lost 1 customer doing 95% of our revenue but it's fine! we still have 10s of customers that make up the other 5%. We'll compensate the revenue of this 2nd biggest player in this market in no time boys!". Are we back to being delusional? You don't get my point that it's being delusional that every time something bad happens it either gets turned into a positive and this one time it's not immediately turned into something positive you're still coming back that it's ok to have a 95% setback? That only perhaps 1% of XRP is actual utility so the bottom without speculation is 0.002$/xrp?

How do you think they're going to get those SMEs on their platform? Your neighborhood liquorstore will join RippleNet and do some ODL transactions in 20 corridors since all his customers are coming from all over the world and pay cross border with their own currency? Maybe microtransactions for a sip of Hennessy?

This is a major setback just like SWIFT GPI was unless they have Uber, Alibaba and the like lined up to start using RippleNet and ODL. Yeah, that's it. They have NDAs and will push the button next week once the internet goes down due to too many people watching Netflix.

Link to post
Share on other sites
29 minutes ago, doopers said:

I don't think they lowered the threshold. I think they just stopped compensating MoneyGram for the slippage, so only lower dollar amounts are cost effective to send

Well I think it's both true. They stopped supporting financially MG for the higher threshold payments by lowering it. I don't think there are issues with low value payments.

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

The 5% of projects that are "still active" are basically having no volume. "hey man, we only lost 1 customer doing 95% of our revenue but it's fine! we still have 10s of customers that make up the other 5%. We'll compensate the revenue of this 2nd biggest player in this market in no time boys!". Are we back to being delusional? You don't get my point that it's being delusional that every time something bad happens it either gets turned into a positive and this one time it's not immediately turned into something positive you're still coming back that it's ok to have a 95% setback? That only perhaps 1% of XRP is actual utility so the bottom without speculation is 0.002$/xrp?

How do you think they're going to get those SMEs on their platform? Your neighborhood liquorstore will join RippleNet and do some ODL transactions in 20 corridors since all his customers are coming from all over the world and pay cross border with their own currency? Maybe microtransactions for a sip of Hennessy?

This is a major setback just like SWIFT GPI was unless they have Uber, Alibaba and the like lined up to start using RippleNet and ODL. Yeah, that's it. They have NDAs and will push the button next week once the internet goes down due to too many people watching Netflix.

Obviously this is a setback, and it took many of us by surprise.  I get that, and if you want to call it a failure you can do that too, but it is missing the point.  Your list of disappointments, failed targets or whatever is comprehensive, and to some minds builds a picture of a company failing.  Again I think you miss the point.   ODL have slipped from 20 to 3 in one day, and it looks like the business model has just been wiped out!

I have been in business for nearly 35 years, and like all businesses seen things fail....but every time there are good things that made my company stronger.  Failure builds a company, provided the company is willing to learn and continue building.  Covid 19 has destroyed my customer base.  Until March I was getting maybe 70 orders a month, that dropped to maybe 2..wow bang...no income.  Fortunately I have an online shop, it was 5% of my business maybe 10% of my profits.  That shop is now running 4 times better than it was in March.  In 3 months I have done a years trading, and during the shutdown I have had a lot of fun doing things I always wanted to do but had not time for.  I have been working on improving our online site and my business is stronger for it.  But ofcourse the pandemic has been a set back.

DS is already telling us this is an opportunity for ripple to return to the root ideas.   2018/19/20 have seen Ripple roll out ODL and they have got their foot in through the door.  Enrique 11 is right, crypto has such huge advantages it is not going t be blown out by this setback.  

In actual fact 95% of ODL as it stood is not that significant.  The most that Ripple have is lost some time, but their tech is so far far ahead they have time to spare.

XRP value may g down, investors may get depressed, but i was always here for the long haul and this is something that Ripple can digest and get over. 

 

Link to post
Share on other sites

I've been thinking about this all day & although it could just be my delusional optimism could it not also just be, as partly touched on above with the Schwartz tweets etc, that this is just switching from large top ups to keep the nostro/vostro's topped up AKA "treasury" & now they trust it works & are happy to use it directly for the smaller individual payments.

If we're talking moneygram here then does that cover all the corridors which have now dropped?

If the end goal/promise of removing the need for nostro/vostros is or could be happening now how would it be handled/processed? Eg if Moneygram has 1bn mexican peso's sat there to handle their business & now they have this new shiny ripplenet what do they do with the parked Peso's? Surely they wouldn't have any benefit in sending it back to usd so they would just use it & reduce it as they send payments out? Which would then at least in the short term mean a drop in odl use, as they hit their reduced holding level or decide to start processing the smaller payments through odl then volume comes back?

This would at least explain why there might be a drop for now as the bit which troubled me was why would doing a little a lot should be less in total than doing a lot a little for the same customer?

Link to post
Share on other sites
13 minutes ago, Julian_Williams said:

In actual fact 95% of ODL as it stood is not that significant.  The most that Ripple have is lost some time, but their tech is so far far ahead they have time to spare.

Well in reality we're almost at 4mln and we might even reach 5 this night, so that's about 20/25% of previous levels and not 5%. This is not a failure but a reset, whether we like it or not.

Here's Galgitron's opinion which is pretty in line with what I stated previously (but don't compare me with G pls 😊):

NB good luck with your business!

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

Obviously this is a setback, and it took many of us by surprise.  I get that, and if you want to call it a failure you can do that too, but it is missing the point.  Your list of disappointments, failed targets or whatever is comprehensive, and to some minds builds a picture of a company failing.  Again I think you miss the point.   ODL have slipped from 20 to 3 in one day, and it looks like the business model has just been wiped out!

I have been in business for nearly 35 years, and like all businesses seen things fail....but every time there are good things that made my company stronger.  Failure builds a company, provided the company is willing to learn and continue building.  Covid 19 has destroyed my customer base.  Until March I was getting maybe 70 orders a month, that dropped to maybe 2..wow bang...no income.  Fortunately I have an online shop, it was 5% of my business maybe 10% of my profits.  That shop is now running 4 times better than it was in March.  In 3 months I have done a years trading, and during the shutdown I have had a lot of fun doing things I always wanted to do but had not time for.  I have been working on improving our online site and my business is stronger for it.  But ofcourse the pandemic has been a set back.

DS is already telling us this is an opportunity for ripple to return to the root ideas.   2018/19/20 have seen Ripple roll out ODL and they have got their foot in through the door.  Enrique 11 is right, crypto has such huge advantages it is not going t be blown out by this setback.  

In actual fact 95% of ODL as it stood is not that significant.  The most that Ripple have is lost some time, but their tech is so far far ahead they have time to spare.

XRP value may g down, investors may get depressed, but i was always here for the long haul and this is something that Ripple can digest and get over. 

 

24 hours later, I now get what Ripple are trying to do and pivoting is never easy. Asheesh is a great guy but the communication was awful (not even sure he wrote it), with very little real explanation other than to say that this was always the vision. It took a flurry of tweets from DS to start to put this right, but in the meantime much damage has been done and trust lost when it wasn't necessary. The flaws in Ripple's marketing are showing through yet again - they really do need to get this aspect right considering that they have such a great company and vision

Edited by mistatee2000
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...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.