/biz/ - Business & Finance

To silence both the FUD and FOMO, I'll try to put minds at ease. Scarcity is the king factor of any market. Some people are upset at bots manipulating the XRP market, but they misunderstand the point, so here's the scoop: Ripple is doing everyone a favor. Those bots are tapped into mega wallets on one side and an exchange API on the other. They fulfill both market and limit orders as they are placed to maintain liquidity. Contrary to popular belief, there isn't enough liquity yet (when you factor circulation), so those bots provide it. Sure they could turn them off and allow people to transact with one another, but then there'd still be a surplus in their mega wallets- the opposite of scarcity. If they can empty out the surplus, that is the moment the true market will begin. They're actually doing you a favor. As soon as scarcity ramps, that becomes the trigger. The reason the big institutions are not buying at scale is due to the regulation of buying as a company. The SEC regulates the hell out of that buyer side, so they have to wait and get all their ducks in a row. If they buy too early, they incur quite a bit of risk. They actually benefit by waiting, they will always be able to afford it when the time comes. So two things are sitting in a waiting room, the scarcity trigger and institutional buying. One will not happen without the other. Here's why: if Ripple outright said they were using the bots to keep people buying (and at low prices) they'd be violating the Howey test by both the "expectation of profits" and "effort by party" elements. If that happened, XRP would be ruled a security and institutional investors would never buy in. That's precisely why they won't buy-in today, because if Ripple messes up their execution of this rollout in any way and gets wrecked by the SEC, institutions don't want to be stuck with a worthless asset and held accountable to their investors. Patience provides.

t. Nobody special, not Ripple nor SEC. Not an insider.