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karlos

FAQs: The Answers

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Posted (edited)

Karlos this is really great, nice job

small thing: maybe put "Interledger" or "ILP (Inter-Ledger Protocol)" or something in brackets in case most people are like, "wtf is ILP?" and/or maybe a link?

great stuff! love it! :heart::good:

Edited by zerpdigger

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@karlos  Thanks for compiling this!  It will quickly become a de-facto point of reference for new XRP investors! 

The only suggestion I have so far would be to add a little bit more to the section about:

Ripple is intentionally keeping XRP stable/low. XRP is better for banks if it has low volatility

I would like to add that I asked JoelKatz if there were substantial benefits to a higher XRP price.   He said that (and I'm paraphrasing here) given the same levels of trade volume, the higher the price of the units being traded, the higher the dollar amounts that can successfully flow through the network without materially changing the price of the underlying asset.  Basically, given a set trade volume, the higher the price of the digital asset, the lower the volatility.  Here is the post where he says that in his own words:

 

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Similar to @Hodor quote above

Quote

ILP means lack of focus on XRP / Ripple doesn't care about XRP
Ripple has reaffirmed its commitment to XRP many times. They are actively seeking new liquidity partners, adding XRP to exchanges (Bithumb, Coinone etc) and creating incentives for people to use XRP. It is here to stay. Ripple has several employees who are devoted solely to improving the appeal of XRP (such as the Head of XRP markets).

I would add:

Ripple and its investors are currently large holders of XRP. Even under lockup the company and its backers would like to see a asset under its control grow and return value to the company.

 

People, especially bitcoiners appreciate greed as a means of self enforcement

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The founders allocated too much XRP for themselves
The initial allocation went like this:
At inception, there were 100 billion XRP created.
20 billion XRP were given to the founders (Chris Larsen, Arthur Britto and Jed McCaleb)
80 was given to the company (Ripple Inc)

While 20% seems large, it is important to remember that a large portion has been donated to charity. Chris Larsen has committed 7 billion XRP to rippleworks (pledge details here). Jed McCaleb has also committed 2 billion to charity (see here).

Assuming the remaining 11 billion is still in the founders possession and not already sold or donated, they currently own 11% of XRP. Of that 11%, a large portion is locked up under the settlement agreement. For comparison, the unknown "Satoshi Nakamoto" is estimated to have around 1 million bitcoins, or around 4.7% of all bitcoins to sell at any time.

After the last sentence I would add:

It is also worth noting that there are no legal lockups, agreements, or other enforceable measures that prevent "Satoshi Nakamoto" from a sudden sell off or actions against the markets interests.

 

People seem to forget that just because "Satoshi Nakamoto" doesn't act that he can't act. Short of all his holding going to a black hole account that threat is still there

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