If you’re new to the scene and you are looking to ”invest” in XRP or Stellar. Don’t…. it’s a scam. Don’t buy these pre-mined tokens that are marketed as digital-currencies, they are not currencies. Trading and dumping on xrp-moonboys is fine but investing in XLM or XRP is financial suicide.
Unlike the central bank that can print at will. The boys at Ripple and Stellar have already printed their supply. The gigantic supply is pre-mined for free and occasionally taken from the vault and dumped on the markets. How much is dumped on bagholders, varies from month to month. Remember these two words. Humongous supply and annual inflation.
Hurrdurr, I’m spreading F.U.D. I trade for a living, traders make money in both bull-bear cycles, what matters is volatility. Just because I trade, doesn’t mean I don’t inform myself bout the tech and business model behind XRP.
The business model is Pump and Dump and paid partnerships. I don’t know any business besides Ripple that pays their customers (moneygram) millions (13.9Million) to use their products. It’s a ticking-timebomb, just a matter of time before regulation start to catch up.
XLM and XRP are centralized and inflationary.
- The chain is permissioned, transactions have to be approved by Stellar or Ripple, which act as the financial intermediary, the middleman that ”gives permission” – and approves the transaction. In theory, transactions can be reversed, completely defeats the purpose of blockchain which is immutability. Digital ledgers aka blockchain should be tamper-proof. XRP isn’t trustless, Ripple is literally the middleman, the bank for cryptocurrencies.
- Not scarce, not digital gold. There is a abundance of non-circulating supply, enough supply for the next 100 years. Not only are you getting screwed with supply-dilution. The supply burn is on-paper only. Max supply 100 Billion XRP with the current burnrate only 1 billion XRP will be burned in the next 100 years, approximately. Would take around 10,000 years to burn all the XRP supply.
- XRP has been falsely deceitfully marketed as a security, giving average joe the false impression that they are holding a security ownership (equity) in Ripple the company. XRP has been promoted as a currency.
- Ripple the company is legit, but the XRP tokens they have issued have no proven usage-case. It’s nothing more than a vehicle like cargo-ship transferring value from point A to point B. Even Ripple own director of regulatory relations for Ripple Ryan Zagone denies any connection with XRP. The XRP token is nothing more than a ”vehicle” for transferring value from point A to B. The assumption that ”ripple’s partners” buy/invest XRP tokens is deillusional. Ripple makes revenue licensing RippleNet to their business-partners. When Bank-A wants to send $15 million to Bank-B, the $15 million are automaticly converted to XRP’s market-price, when the XRP tokens arrive at Bank-B, the xrp’s are automaticly converted back to Dollars.
- Metaphorically speaking. Ripple is a cargoshipping company. RippleNet is cargo-shipping service, XRP-tokens are the cargo-ships. Clients who have signed up for RippleNet, pay a monthly fee for the cargo-shipping-service. And, NO! they do not own/buy/invest in cargoships (xrp). They don’t need too, it’s included in the service. When you ship a packet to another country, would it make sense to buy a airplane? The supply and demand principle doesn’t really apply here. It doesn’t matter whether XRP is $0.001, $0.030, $0.50 or $1 it’ just a ”cargoship” for transferring value from point a to point b. Hence, why big partnerships with big financial players don’t mean shit. Ripple’s partners never paid a penny for XRP tokens.
- Banks have been and are building their own chain on hyperledger, corda, ethereum. Chinese banks have filed over 300 blockchain patents in 2018 alone. The narrative that Ripple is sole-provider of ”blockchain” services for banking is false. JPMorgan moves trillions of dollars a day, 1500 transactions per second isn’t going to cut it.
Ripple’s Pump And Dump Business Model.
XRP ”investors” are all mentally handicapped. Imagine forming a twitter Bitconnect streetgang that attacks anyone who dares to badmouth Bitconnect then up getting pooped on by Bitconnect. The irony!
XRP Brainlet Archive
October 2018 when XRP was trading at $0.49
Update 24 March 2020
Price target of $0.10 hit…. Here, you have it. While your paid group-leader (cryptomaniac101) predicted $10 in January…. traders who actually trade (me)….. predicted $0.11.