Ripple the company is unique in the sense that it doesn’t make money from selling its product. It makes money by selling its stash of XRP coins to naive “investors” (let’s call them “XRP bagholders” for more clarity).
Ripple is very transparent about this – they even issue regular reports like this one ripple.com/insights/q4-2018-xrp-markets-report/, where they announce how many XRP coins they’ve dumped on XRP bagholders.
In 2018 alone, Ripple has made over $500 million selling XRP coins.
XRP bagholders buy XRP coins because they believe that XRP coins are worth much, much more than what they’re selling for right now. The reason for that belief is that Ripple goes to great lengths to communicate on how its technology will change the world, and how it will be used by every financial institution for transfers and settlements – which is the core of banking.
The main argument for why XRP coins are worth something, is that Ripple’s technology will supposedly render obsolete the nostro/vostro account system, which supposedly requires $5 trillion to be frozen today. Because this pile of cash will be freed up, the reasoning goes, it will be somehow replaced by XRP coins, thus somehow giving XRP coins an equivalent market value of $5 trillion, or $50 per coin. This is all explained on Ripple’s own website.
Currently, XRP coins trade at around 30 cents, so the nostro/vostro argument induces hopes of 15,000% returns for XRP bagholders. Other Ripple-friendly sources have gone to great lengths to inflate this potential valuation, suggesting that one XRP coin could be even worth over $500.
Doesnt seem worthless if big money always buys huge amounts.
Imbecils cant respond without getting a stroke
Landon Nelson
nice
Tyler Ross
Perfect example of why crypto is just a high tech digital scam
Kevin Baker
everything involving money is a scam, if it weren't there is no money to be made. The only difference is in how long can they go on for before they collapse.
Camden Jackson
This
Josiah King
> I still don't get WHO is buying that OTC sales
Why are you asking us WHO when Ripple won't tell you. Ripple won't tell you WHO because they are dumping large amounts on exchanges like here 1 BILLION XRP is dumped in Jan. and Feb. 2018 from this wallet onto Korean exchanges:
In the quarterly report, it shows up as, we sold 1 Billion to OTC. If they actually sold 1 Billion to say a renowned bank or financial institution, I am sure Ripple hype marketing would love to publicize it. But banks and financial institutions are not retarded enough to buy hundreds of millions or billions of chucky cheese tokens.
My disgust for normies is magnified by the normie support base for XRP, especially on Twitter.
Dylan Wright
Ripple succeeding in making XRP a global bridge currency is 100x more likely than BTC ever gaining meaningful adoption. Complain all you want about Ripple's sales, at least they don't come close to the $5 billion in block rewards that the Chinese have dumped on BTC bagholders last year alone. Mining is the scam of the century.
Nathan Sullivan
True. I don't see BTC ever be adopted in the sense that people will buy groceries or make small payments. Even black market payments are done with XMR. The problem is BTC is treated as property and not currency by most governments so you end up paying capital gains tax on every item you buy. Nobody is using BTC to buy pizzas because they all know the former might be worth a lot more in the future. Either you replace the BTC you spent immediately or just dispose of assets least likely to appreciate like fiat to buy things. BTC will never take off as currency but as store of value asset.
XRP has a niche use in remittance but will only rocket in value because of being paired to BTC and the hype that comes with all the money Ripple spends on advertising. Many think XRP is garbage but unlike most alts this one is guaranteed to go up with BTC and so it's actually a safe play in the long run.
Christian Turner
> Ripple succeeding in making XRP a global bridge currency is 100x more likely than BTC
There is ZERO chance that a chucky cheese token created out of thin air where the supply is completely controlled by a single company and founders also own 7% of the supply is going to be the global bridge currency. Bitcoin does 20 X times the volume in exchanges plus has an OTC market. Ripples is a chucky cheese token sold to crypto noobs
> $5 billion in block rewards that the Chinese have dumped on BTC bagholders last year alone
Bitmain lost $500 Million in the 3rd quarter alone last year. They tried to IPO because they bled so much money in 2018. Bitcoin mining companies have mined at loses for multiple years before. It's not free money. They take risk just like investors. Additionally, there have been generations of miners over 10 years making Bitcoin almost like a naturally occurring resource that is mined and distributed to cover costs. Compare that to Mcaleb, Larsons, Schwartz and Garlinghouse coming up with 100 Billion out of thin air, keeping billions for themselves and another 60% for the company. They will never incur a loss, they own most of the supply and it's free money forever.
The cost is advertising. Bitcoin has mining, XRP has Ripple to pay hundreds of millions on advertising, it's not free. Once Ripple stops advertising and shilling and propping up XRP it loses it's #3 spot. Why do you think XRP is $0.30 instead of 8¢ ? Ripple needs to spend money to keep the price stable until the next bull run.
Carter Powell
So Ripple needs to pay for pajeet shills life yourself and ads to keep the price from falling. I thought banks were adopting it with tons of partnerships. That whole business model sounds like Vechain
