Questions about Foreign exchange Market Making Fund

[ThomasTheTGV]

In 2015 I bought FMM (Foreign exchange Market Making Fund) from Ripplefox as a test to see what it would bring me. For the last couple of years it has generated a small but steady flow of XRP for me. Now I'm wondering a couple of (stupid) things:

• Do you own FMM? Why or why not?
• How do you see the future (short-/mid-/longterm) of programs like FMM
• Am I 'day trading' because I own FMM?
• From a tax point of few what is FMM? An asset? And what are the XRP 'gains', are they interest, dividend or something else?
• Speculation question: If the Ripple network is mainly used by banks in the future, will FMM do better or worse/ won't make profit at all.

I've tried mailing directly to Ripplefox but didn't get any reply, so that's why I'm posting it here.

[Hodlezerper]

46 minutes ago, ThomasTheTGV said:

In 2015 I bought FMM (Foreign exchange Market Making Fund) from Ripplefox as a test to see what it would bring me. For the last couple of years it has generated a small but steady flow of XRP for me. Now I'm wondering a couple of (stupid) things:

• Do you own FMM? Why or why not?
• How do you see the future (short-/mid-/longterm) of programs like FMM
• Am I 'day trading' because I own FMM?
• From a tax point of few what is FMM? An asset? And what are the XRP 'gains', are they interest, dividend or something else?
• Speculation question: If the Ripple network is mainly used by banks in the future, will FMM do better or worse/ won't make profit at all.

I've tried mailing directly to Ripplefox but didn't get any reply, so that's why I'm posting it here.

Just stumbled on your post and the FMM from RippleFox. How does one buy that?

[ThomasTheTGV]

Well in my case it involved converting euro's to ripple on bitstamp, trading ripple to dollars and than from dollars to yuan. All because the ripple - yuan market was very bad at that time. And then trusting the FMM-address and convert/buying FMM.

Here are the instructions from Ripplefox website itself:

The fund uses dividend model and runs automatically. We will keep a portion of the profit (≤ 30%) to cover the operating cost.
The XRP distribution is triggered manually in working day. We will combine several dividend into a single payment in case of few-days delay.
FMM's base currency is CNY. The value for 1 FMM is exactly 1 CNY. The hot wallet will always sell FMM at price 1 and buy at 0.999.
Consider the CNY/USD exchange rate if you want to buy/sell FMM using USD. You may lose money when the rate changes.

Email: fmm@ripplefox.com

Subscription

•     Buy FMM using CNY, USD. Gateway address: ~ripplefox(rKiCet8SdvWxPXnAgYarFUXMh1zCPz432Y)
•     Trust FMM and use "Convert". Consider the exchange rate before you CONFIRM.

Redemption: Just sell FMM. Do NOT send payment to any fund account.

Edited August 20, 2017 by ThomasTheTGV
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[ThomasTheTGV]

FYI I spend around 1000 USD and made around 800 XRP so far... So if I would have bought XRP instead of FMM in 2015 I would have made more money by now. But market making is important so it's a bit of a bet if it will pay out in the coming years. That's why I asked all the questions above!

 

[Mercury]

I believe that RippleFox is no longer issuing new (ie. larger pool) FMM due to some regulation. 

[ThomasTheTGV]

6 hours ago, Mercury said:

I believe that RippleFox is no longer issuing new (ie. larger pool) FMM due to some regulation. 

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Ah I found the @brianwalden post from may. Any news from support Brian?