Resistance against the erosion of your buying power is futile in the Fiat world of finance.
It's why we have Bitcoin (54% of Total Market Cap), Ethereum(12%) and the world of Altcoins and Tokens (34%)
Why is it then, in something like #XRP, that curious user of cryptographic keys and PoS, continues to expand it's sinking ship of Fiat of Customers?
Well, take a look at the Ripple Labs Customer List (see main graphic). What jumps out right away is none of them are stellar "Stores of Value", every single one of them really, is feasting on usury, that is earning a middleman (minimal value add) some "percent value", drummed up by a "corporate captain" at the helm, operating that corporate label at the behest of shareholders, for the sake of their own centralized enrichment. (and everyone else can take a hike!)
The CB and Private Bank Darling? XRP, ready to eat your Buying Power on a Single Key Stroke
XRP and Ripplenet is a classic case of Old World Economics leveraging aspects of new crypto Fin Tech to "stay in the game" and in central control of their money supply, a model in which I chose not to partake in for moral reasons and, for the primary reason of protecting my own buying power, for the long run.
Why? Because my buying power matters, without massive debts attached, please and, so does yours.
The Big Ripple Labs Pump this past 14 days by the XRP 'whale' powers holding a lot of XRP reflect the intent of this RippleNet "wall of logos" (see above) which has seen XRP reach new heights not seen since 2018.
XRP Pump enables Digital Fiat "Scorched Earth" Financing of Unicorns- "The Real Fiat Reset" hiding behind the XRP Crypto Label
This latest BIG XRP Pump tells you how that Old School game works. That is, 'Coat Tail' the success of real cryptos BTC and ETH, then convert the engineered windfalls back into legacy Fiat, in order to buy back their own corporate stock shares to, reduce number of stocks available for their own shares , so as to raise those same corporate Stock Prices up and, voila, deliver their corporate shareholders the EPS "Earnings Per Share" they expect, every quarter.
Bigger market cap, means lower interest rates at the over night window and more debt to shower their own debtors with. Rinse Repeat and Reward those shareholders, over and over again. It's a sick cycle that needs to end.
Most importantly these Banks back Big Unicorn plays to envoke a razed earth strategy of destroy all competitors in a specific market sector with the goal of obtaining 50% or more market share dominance (Anti-trust laws be damned). Amazon is likely the best example of NYC banks getting behind one 'play' and, regardless of profit indicators, simply dump as much money as possible into that 'play' to destroy every other competitor and gain 50% plus market share.
The NEW World of Crypto: Out with the Old and, in with an "Honest Model" of Price Discovery" ?
In today's Old World Economy, it's 'great' when some entity like Ripple Labs can dial-in market prices from some pre-programmed rule set lurking in behind their own AI-ML Controlled Order Router doing their XRP bid/ask work, long or short, puts and calls, doing whatever rocks their boat.
Seriously the above price discovery model really sucks, because the sources reporting prices can't really be trusted.
So where does an investor go these days, to get the exogenous (competitive/relative/composite) market price and price affecting info they can trust.
Without trusted price discovery, how can an investor accurately decide as what buy/sell price points to place if their really is no trusted "market price"?
Yes price discovery in the world of fiat valued assets, driven by regime printing presses is truly quite farcical these days, cuz they just make it up, backed by nothing.
The Solution to this Market Price Manipulation Skulduggery might very well be a well designed oracle checking prices across multiple markets is one place to start, provided the buy and sell walls, the bid and ask is actually backed and locked in (Staking anyone?).
Today, even in the world of crypto there is much 'naked' shorting going on to bid up or down the price, most of it driven by that nasty combo of unregulated AI + ML "machine-works" driving the Order Routers out there in Fiat and Crypto worlds, The motives of which can be many. (GEt rich on the market ups and downs , screw someone's long position for profit, etc..)
The net of the above discussion begs the Question: Do you really trust the current price of XRP?
The Naked Short- the Bane of your Buying Power's Existence
Why true price discovery matters, is the alternate title of this section of the post. PoS in its current form shows such promise in this regard, ie- how about taking your Buy or Sell offers, with the notion you lose some significant portion of the amount staked, if you pull out before the staking offer time period expires, without any penalties? This is indeed how the crypto market works today. Ouch.
Heck, most of us in this space know at least this naked shorting is possible, being aware of software programming capabilities at some level.
Allowing the naked short to persist in combination with Stock Buy Backs, coupled with the use of Centralized Command and Control of the money supply a la Ripple Labs or, any other fiat powered government regime and their currency, it's easy for one to see how the Old World Economy will hang in there an thrive.
Believing Ripple Labs Private Banker Customer base, which holds most of the XRP out there can be the foundation a world currency is about as laughable as having Danny DeVito play Wolverine. Why? Because most of these banks listed are insolvent. So the latest XRP Dump is a result of very powerful people with fiat assets at these banks really directing the show to try to save their own skins by 'kicking the fiat can down the road' in the form of XRP, aka digital fiat.
Get Shorty, Out of there, and while your at, it throw old mama "Digital Fiat " XRP from your Crypto Investor Train too,
Naked Shorts and Stock Buy Backs powering fake stock prices have to go and, anyone supporting Ripple Labs and XRP (That "left leaning", centralized half crypto from you know where), really need to look for alternatives.
Expect wise crypto investors, those who really understand how all three abominations hurt your buying power to shy away from XRP. These wise investors in crypto, understand the influencers of Ripple Labs, that is their private banking customers holding all the XRP, are indeed listening to their old school depositors and "accredited investors". That influences collectively is behind the XRP pump. Keep in mind, the collective private banking whim, can move in concert (its called collusion) to erode your buying power in each "claimed store of value" with a single keystroke (or via a conditional branch in a program running the AI Engine commanding the Order Routers for each.) The big joke is on you when the dump, because they will already have their downside market plays in place ready to cash in on the dump (via automated order routers).
Honest Price Discovery for Crypto- We have the tools, but do we have the collective will?
Where to start? Well transparency of transactions ( public DLTs anyone?), coupled with a per transaction PoS "Proof of Stake" with early withdrawal penalties (say 15% or more) for all buy and sell orders placed in any market, fiat or crypto, would be a great place to start. Just watch how fast true/honest price discovery returns to the markets, if the above were to happen.
Stop Stock Buybacks. Cancelling this Clinton enabled fiasco will take massive voter will and, that, imo, won't show up too soon, until the electorate itslef gets educated, starting in senior public school, about the basics of economics, likely best taught these days via the gamer experience, for the next 10 years.
Right now though, it's biz as usual, research, research, research to make those investments which really pay off in more ways than one, financially, morally, in the community and in the world.
TK's advice- As always, be careful out there and, protect your long terms prospects and buying power by steering around and clear from what looks like a good market ripple in XRP (QFS ,Flare Network or whatever the related spin is). If anything, its the moral thing to do for you, your kids and your grand kids, that is invest in some quality crypto, #BTC, #Ethereum, #Cardano, #LTC or similar, and don't forget the up and comes with transparent business plans and teams with clear Road Maps creating real Main St. Value add, proven by an independent third party validator (without Censorship and Cancel Culture attached please.)
The Dawning of a new DAO with Honest Price Discovery? Maybe sooner than you think on several fronts..,
Maybe one day (hopefully in the near, very bright future of honest crypto), we will all see multiple, interconnected DAOs 'Distributed Autonomous Organizations' emerge which actually work, for the people, created and governed by the people, DAOs which fix the above shenanigans (per the TK suggestions), for the peace and prosperity for all.
After all, we have learned a few lessons from past DAO failures like Ethereum (Circa 2016) et al and, I think, collectively in the crypto world, now know what to do and have what it takes to make DAOs work for the people, as governed by the people with honest asset pricing built in. (These DAOs will be people and investor centric and that means Multi-sigs controlled by people, voted in by people, to cross-signature handle/regulate/change the DAOs for the betterment of all the people will be essential.)
TK Tip- I am personally cheering for #MaidSafe to get their DAO release right, currently know as their WIP #SAFENetwork effort. the small team there with a really big goal to re-invent the Internet using distributed storage as the foundation, where liquidity and external market use of their replacement 1:1 MaidSafe Token for #SAFECoin swap. IMO their biggest challenge at the moment is to build their DAO to have external liquidity, supplemented with honest price discovery protection, when onboarding/converting fiat sources to SAFECoin.
Until such DAOs, equipped with honest price discovery do show up, I know , for now, I won't be fooled again or ever subscribe to a Pump chasing exercise like XRP and, get attracted to the automated Order Router manipulated price climb setup, like "a bug to the light down at the Ferguson's", cuz my research, research, research actually is based on strong moral convictions about what the future needs to look like, as it applies to honest money, backed by honest price discovery.
TK over and out.