I saw this on BTT:
Joel Katz https://bitcointalk.org/index.php?topic=873067.msg9677580#msg9677580
Also, I don't think anyone really understands what's moving the price of XRP. So the risk and expected rewards are essentially uncomputable.
The Mage https://bitcointalk.org/index.php?topic=873067.msg9678099#msg9678099
Second time ive seen you say this, and as a director on the ripple board I call BS. You know full well why the price is going up, it has to do with the fact that you airdropped coins enough to weasel into the second place on coinmarketcap. Who did those coins go to?
Joel Katz https://bitcointalk.org/index.php?topic=873067.msg9684167#msg9684167
Are you saying that increasing the supply of XRP increases the price? That seems to fly in the face of basic economics. Are you saying people are reliably fooled by big numbers on coinmarketcap into thinking the price is rising when it's not and that makes the price rise? That is, I guess, possible, but I certainly don't believe it's significant.
The short term price of XRP really is not that important to Ripple Labs. To some extent, it's seen as a measure of the health of the company and to some extent our success may depend on what people perceive our chances of major success are. But increases in price based on manipulation or misinformation are almost always going to be followed by comparable drops in price. If we like the message price increases signal, it follows that we don't like the message price drops signal. Ripple Labs is not a short term speculator in XRP.
There certainly are short term speculators in XRP who have an incentive to manipulate the price to buy low and sell high. But Ripple Labs is not one of them and their actions hurt us at least as much as they help us. We'd prefer a stable price to a sharp rise followed by a comparable drop.
If don't think there's any way to trick or manipulate the market into an increase in price that won't be followed by a similar decrease. And I don't think such increases or decreases are always due to manipulation because momentum trading alone can do it as well.
You're welcome to disagree with me, of course, but I share my views freely and openly and always try to explain why I hold these views. I don't appreciate unfounded accusations of dishonesty. I'm very open to contrary views and always willing to change my opinions based on evidence or argument. I fully recognize that I could be wrong about this and basically, my position is essentially that market prices in the absence of real changes to asset fundamentals are basically just chaos.
"Are you saying that increasing the supply of XRP increases the price?" - Joel Katz
[sarcasm]
Yeah Joel, that's exactly what he's saying! Wow, you're a genius![/sarcasm] lol
Joel and all the other Ripple Labs bigwigs know exactly what they are doing. They understand how important it is to be second in market cap behind bitcoin and are intentionally manipulating the "coin supply" to reflect this artificial market cap. Most people look at marketcap and correlate that to the success of the platform. The media also does this.
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The short term price of XRP really is not that important to Ripple Labs. Ripple Labs is not a short term speculator in XRP. - Joel Katz
Don't let them fool you. The price per XRP is extremely important to them. This is partially where they derive their funding. Also, a high market cap makes it easier for them to get venture capital funding.
"SHORT" is the key word in the second sentence.
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"If don't think there's any way to trick or manipulate the market into an increase in price that won't be followed by a similar decrease." - Joel
Joel, why are you twisting his words? You know as well as I do, he is not referring to an increase in price
PER XRP, but is referring to the market cap as a whole.
It seems to me that Ripple Labs is doing a pretty good job of manipulating the market cap of Ripple so it goes up and doesn't come back down.
How so, you ask?!
Ripple Labs claims to expand the float of XRP, but doesn't release those XRP on the open market. There is around 7 billion XRP on the open market, but their market cap is calculated off of a 30 billion XRP float. This means their market cap is really ~$105 million USD which puts them under Litecoin.
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"I don't appreciate unfounded accusations of dishonesty." - Joel
Maybe people think you are dishonest because you play games and twist their words.
Why didn't you answer his second question?
"Who did those coins go to?"BTW, in case you're confused, he's referring to the 23 billion coins that are reflected in the market cap but unavailable on the open market.
