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Valuation Models - XRP The Digital Currency Vs. Ripple the Company


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On 2017-5-25 at 6:35 AM, JoelKatz said:

Again, I apologize for misleading people. That was totally my fault. I was really excited about we had coming and really couldn't resist sharing my enthusiasm. I'd say I'll be more careful in the future, but I think that would be kind of a sad thing. Know that I will always try to be completely honest and say only what I genuinely believe but that sometimes things will change and that is beyond my control.

 

On 2017-5-25 at 6:35 AM, JoelKatz said:

I am sorry that wound up misleading people. Let me explain what happened:

Originally, we were going to have three demos at consensus. XRP to ETH using ILP, Banking payments using XRP/paychan under ILP, and a demo of a future vision of a micropayment system over ILP.

We were also going to do several corporation partnership/strategy announcements, including the lockup and the new exchanges and so on at consensus.

It reached the point where there just weren't slots for all the demos or time to do the releases. And it wouldn't have given people time to track us down to discuss new partnerships and so on if those announcements motivated them to talk to us. Also, we expected everyone else to announce at consensus, so we might have gotten lost in the noise.

So the strategy changed. We announced more things before consensus and at some point, we just decided to announce pretty much everything before consensus to go in consensus on a high with everyone already wanting to talk to us about what we were doing.

The strategy, I think, worked well. We did enter consensus with a high level of excitement. Lots of people wanted to work for us, and we had lots of high-level talks with all kinds of people. We had lots of companies offer to run validators in lots of jurisdictions. It was awesome.

But the downside was that we didn't announce very much new at consensus, though that was the original plan.

Again, I apologize for misleading people. That was totally my fault. I was really excited about we had coming and really couldn't resist sharing my enthusiasm. I'd say I'll be more careful in the future, but I think that would be kind of a sad thing. Know that I will always try to be completely honest and say only what I genuinely believe but that sometimes things


That's good i like it :clapping: ... it's very late in my country even so I keep reading as much as I can to keep informed:d_book:.
But I still do not understand certain things ... is it true or false that our XRP will acquire a value of $ 0.7 or 1 $?
Capable many independent investors like me will ask the same question.
Greetings and good luck.
I have a lot of faith in this project.

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  • 2 weeks later...
On 5/25/2017 at 0:50 AM, JoelKatz said:

Here's how I've been explaining it recently:

1) There's a business that Ripple has providing transaction processing software to banks. It can work without XRP and without any blockchain tech. It improves international payments because it uses end to end messaging to track payment progress, ensure all necessary compliance information is in the transaction in the first place, precisely knows the fees ahead of time, and provides prompt, reliable confirmation of delivery. This is a big enough improvement that banks will use it even if the actual money moves the same way it does now.

2) Ripple has built a public blockchain with a native asset. It has various nice features -- a distributed exchange, good governance, fast transactions, high transaction volume, native multisign, key rotation, payment channels, and so on.

3) The hard part about getting banks to use a blockchain isn't the blockchain, it's everything else. It's governance, compliance, integration with banking systems, and so on. our software does all that stuff, so if routing a payment through XRP is a penny cheaper, the bank can take it. Then we have to make XRP cheaper somewhere that matters.

4) We don't target the biggest corridors like USD->EUR because they're efficient. We target an inefficient, but fairly high volume, corridor. For example, EUR->INR. Market makers have very small profit margins, so even a small incentive to place good EUR<->XRP and XRP<->INR offers can beat what banks are getting now through the correspondent banking system.

5) Once we get one corridor, we hang other countries off each end of the corridor, expanding the reach of XRP.

6) Now, say you're a company like Seagate that pays out money all over the globe. If you have to make payments to five countries in our corridors, you'd rather hold one pile of XRP than five piles of different currencies. That increases demand.

7) Now, say you're a company like Apple with a huge pile of cash. If you want to snap up other assets cheap, you'll need to hold the asset the people selling want. If they're going into any of our corridors, they'll want XRP, so you would want to hold it.

8) If that succeeds, it should massively increase the price of XRP.

9) Ripple holds a huge pile of XRP and will be the dominant XRP holder for the foreseeable future. But we're primarily VC financed and we get revenue from selling software to banks. We don't use our XRP as a bank account but as a strategic weapon. (Though we do sell some for revenue, we just don't need to for salaries or to keep the lights on.)

10) Anyone who gets XRP from us as part of some deal with a lockup has their incentives aligned with ours. They want the long-term price of XRP to go up too.

I think that pretty much covers our vision. There is, of course, no guarantee of success. This is a pretty crazy thing we're trying to do. But we have 160 full time employees and have raised tens of millions of dollars. We've hired many amazing people, and our track record speaks for itself.

Beautiful vision!

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  • 2 months later...
On 25-5-2017 at 0:35 PM, JoelKatz said:I am sorry that wound up misleading .....

Again, I apologize for misleading people. That was totally my fault. I was really excited about we had coming and really couldn't resist sharing my enthusiasm. I'd say I'll be more careful in the future, but I think that would be kind of a sad thing. Know that I will always try to be completely honest and say only what I genuinely believe but that sometimes things will change and that is beyond my control.

@JoelKatz thank you for the apology because I and quite a few other small investors payed the price of your 'hyped' pre consensus 2017 statement. As a result I am holding XRP bought at a price twice the present value. On paper a loss of approxomately $ 25 K. So if you folkes at Ripple can somehow compensate (transfer me 100,000 goodwill/relief XRP) for that 'on paper' loss it would be greatly appreciated.

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3 minutes ago, cryptoxrp said:

@JoelKatz thank you for the apology because I and quite a few other small investors payed the price of your 'hyped' pre consensus 2017 statement. As a result I am holding XRP bought at a price twice the present value. On paper a loss of approxomately $ 25 K. So if you folkes at Ripple can somehow compensate (transfer me 100,000 goodwill/relief XRP) for that 'on paper' loss it would be greatly appreciated.

@cryptoxrp...Yoy shld be happy that @Joelkatz brought XRP to your attention; within 3 years you have a paper profit of $124,975,000 https://medium.com/@Shukri30/ripple-would-be-worth-1-000-in-3-years-365135e5114f

;-)

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7 minutes ago, cryptoxrp said:

@JoelKatz thank you for the apology because I and quite a few other small investors payed the price of your 'hyped' pre consensus 2017 statement. As a result I am holding XRP bought at a price twice the present value. On paper a loss of approxomately $ 25 K. So if you folkes at Ripple can somehow compensate (transfer me 100,000 goodwill/relief XRP) for that 'on paper' loss it would be greatly appreciated.

We are all responsible for our own actions.... and consequences thereof. If the heat gets too much then we should not be in the game in the first place, and yes, this is not a game, therefore proper thought and risk analysis of consequences should take place

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9 hours ago, Live4xrp said:

@cryptoxrp...Yoy shld be happy that @Joelkatz brought XRP to your attention; within 3 years you have a paper profit of $124,975,000 https://medium.com/@Shukri30/ripple-would-be-worth-1-000-in-3-years-365135e5114f

;-)

I surely hope so.:) But my answer is not an attack of any sort and I appreciate @JoelKatz work/input on xrpchat. It is only that I find that misplaced remarks (by anyone from Ripple) can do quite a lot of damage (also to small investors) and that my intention is/was to give my 'on paper' loss a value (so he understands the results of his action). And to make clear that it would be much wiser to use the right Ripple channels for sensitive commercial statements. It's most often that small investors get hit because they do not have firsthand information and they can not make use of the 'Ripple banks and institutional Investor backdoor'. Ripple should be respectful to small investors and acknowledge their importance to the XRP value growth in the same way as the Banks and institutional investors are valued. At this moment I feel that is not the case. I further beleive that for the succes of the XRP (ledger) ecosystem a 'level playing field' is essential. So I hope that Ripple will consider a 'small investor program' with specific benefits and that sensitive information will be only published in a timely and transparent manor.

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  • 11 months later...

In light of yesterdays preferred exchange announcement, I thought I'd dig up this great post from JK outlining the Ripple game plan. I am in awe of the vision and execution from this team of legends and can't wait to see fruition. 

On 5/25/2017 at 3:50 AM, JoelKatz said:

Here's how I've been explaining it recently:

1) There's a business that Ripple has providing transaction processing software to banks. It can work without XRP and without any blockchain tech. It improves international payments because it uses end to end messaging to track payment progress, ensure all necessary compliance information is in the transaction in the first place, precisely knows the fees ahead of time, and provides prompt, reliable confirmation of delivery. This is a big enough improvement that banks will use it even if the actual money moves the same way it does now.

2) Ripple has built a public blockchain with a native asset. It has various nice features -- a distributed exchange, good governance, fast transactions, high transaction volume, native multisign, key rotation, payment channels, and so on.

3) The hard part about getting banks to use a blockchain isn't the blockchain, it's everything else. It's governance, compliance, integration with banking systems, and so on. our software does all that stuff, so if routing a payment through XRP is a penny cheaper, the bank can take it. Then we have to make XRP cheaper somewhere that matters.

4) We don't target the biggest corridors like USD->EUR because they're efficient. We target an inefficient, but fairly high volume, corridor. For example, EUR->INR. Market makers have very small profit margins, so even a small incentive to place good EUR<->XRP and XRP<->INR offers can beat what banks are getting now through the correspondent banking system.

5) Once we get one corridor, we hang other countries off each end of the corridor, expanding the reach of XRP.

6) Now, say you're a company like Seagate that pays out money all over the globe. If you have to make payments to five countries in our corridors, you'd rather hold one pile of XRP than five piles of different currencies. That increases demand.

7) Now, say you're a company like Apple with a huge pile of cash. If you want to snap up other assets cheap, you'll need to hold the asset the people selling want. If they're going into any of our corridors, they'll want XRP, so you would want to hold it.

? If that succeeds, it could increase the price of XRP.

9) Ripple holds a huge pile of XRP and will be the dominant XRP holder for the foreseeable future. But we're primarily VC financed and we get revenue from selling software to banks. We don't use our XRP as a bank account but as a strategic weapon. (Though we do sell some for revenue, we just don't need to for salaries or to keep the lights on.)

10) Anyone who gets XRP from us as part of some deal with a lockup has their incentives aligned with ours. They want the long-term price of XRP to go up too.

I think that pretty much covers our vision. There is, of course, no guarantee of success. This is a pretty crazy thing we're trying to do. But we have 160 full time employees and have raised tens of millions of dollars. We've hired many amazing people, and our track record speaks for itself.

2

 

 

 

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