Here's the official launch of the Fund.
Today, a total of 300,000 unit was issued to the hotwallet,
and offer was created selling them at price of 1xmm = 1xrp.
This initial sell offer will last until the end of this month (28-Feb-2014).
Anybody who like to support the Fund could choose to buy any amount he like.
The XRPs raised will then be sent to some trading accounts to perform market making. The reason I create several trading accounts, is for ease of management. Each account will be assigned for different task (e.g. trading different pair of currencies). Funds would be moving around but will never leave these accounts.
The address of hotwallet and trading accounts are listed on the 'Ripple' page of this blog.
Though I've set an internal target of 10% return per month, there's no guarantee that I could achieve that. Since XMM is not a pure for-profit fund, I hope its holders won't stress too much on investment return.
Make sure you understand the concept and philosophy of XMM before investing.
Please read the previous blog post, and also the pre-launch discussions on forums.
Monday 24 February 2014
Sunday 23 February 2014
the Philosophy - Currency means Flow.
The main reason human invented money, is to facilitate trades. That's why it's called "currency". To realize its value, money has to flow from one place/person to another.
But the opposite is what happening now inside Bitcoin and XRP community. With the anticipation of potential price appreciation, many people start accumulating and hoarding the currencies instead of using them for transaction.
This is never a good sign for any currencies, especially those new-born. The more a currency is being hoarded, the less will it be in circulation, thus the more difficult for it to play the role as trading medium.
the existence of funds like XMM could be a mechanism to counteract or mitigate people's intention of hoarding XRP.
The fund provide an investment opportunity for ripplers to earn extra profit. So, instead of just hoarding their XRP some people may choose to invest them into the fund, which will then be thrown into market-making activities.
In other words, the Fund helps to mobilise some stagnant XRPs by drawing them out from people's storage. I hope this will improve the circulation rate of XRP thus making it a better and healthier currency.
Our philosophy -- a good currency is the one that flows.
But the opposite is what happening now inside Bitcoin and XRP community. With the anticipation of potential price appreciation, many people start accumulating and hoarding the currencies instead of using them for transaction.
This is never a good sign for any currencies, especially those new-born. The more a currency is being hoarded, the less will it be in circulation, thus the more difficult for it to play the role as trading medium.
the existence of funds like XMM could be a mechanism to counteract or mitigate people's intention of hoarding XRP.
The fund provide an investment opportunity for ripplers to earn extra profit. So, instead of just hoarding their XRP some people may choose to invest them into the fund, which will then be thrown into market-making activities.
In other words, the Fund helps to mobilise some stagnant XRPs by drawing them out from people's storage. I hope this will improve the circulation rate of XRP thus making it a better and healthier currency.
Our philosophy -- a good currency is the one that flows.
Background of XMM Fund Project
In an ideal ecosystem of Ripple, there will be lots of market-makers that compete intensively with each other, the spread will be minimal and the volume will be huge, thus bring down the cost of transactions and currencies-conversion.
However, this is not the case in current stage. When we look at the order books, the first impression most people get is the wide spread and low volume. How could Ripple become a low cost payment if there's no liquidity?
In normal condition, wide spread means windfall-profit opportunity. This should attract investors, speculators and arbitragers to fill up the gaps. However, currently Ripple's user base is quite small and transaction volume is very low. So even though the margin is great, the absolute figure of profit is still not attractive enough to bring in some big players.
And because ripple is still in beta, there is a high risk of total failure and everything thrown into it may become wasted. Hence most people only willing to invest little amount of money or time into it.
so these had become a cycle: not enough market-makers means wide spread and high cost, thus very few people want to use ripple, then the low transaction volume, and hence no body willing to invest significant amount of time/money for market making.
The pooled fund is intended to solve this chicken-egg problem.
In the form of pool, we could raised fund to inject bigger tranche of liquidity into market, yet each individual only assume small amount of risk, limited to the portion of money they contribute. And having a manager to perform the market-making jobs means those who have no time for this can still participate in providing liquidity.
Off course, with only one or few funds like this we are still not able to create great liquidity in the system, but at least we take our steps. I'm in a hope that there will me more funds (be it individual or pooled) joining the market-making party in the future, each will have their own trading strategy or technique, and some with automated process to do it more efficiently.
Only with the presence of intensive competition will Ripple then become a highly liquid low cost payment system and attract more users.
However, this is not the case in current stage. When we look at the order books, the first impression most people get is the wide spread and low volume. How could Ripple become a low cost payment if there's no liquidity?
In normal condition, wide spread means windfall-profit opportunity. This should attract investors, speculators and arbitragers to fill up the gaps. However, currently Ripple's user base is quite small and transaction volume is very low. So even though the margin is great, the absolute figure of profit is still not attractive enough to bring in some big players.
And because ripple is still in beta, there is a high risk of total failure and everything thrown into it may become wasted. Hence most people only willing to invest little amount of money or time into it.
so these had become a cycle: not enough market-makers means wide spread and high cost, thus very few people want to use ripple, then the low transaction volume, and hence no body willing to invest significant amount of time/money for market making.
The pooled fund is intended to solve this chicken-egg problem.
In the form of pool, we could raised fund to inject bigger tranche of liquidity into market, yet each individual only assume small amount of risk, limited to the portion of money they contribute. And having a manager to perform the market-making jobs means those who have no time for this can still participate in providing liquidity.
Off course, with only one or few funds like this we are still not able to create great liquidity in the system, but at least we take our steps. I'm in a hope that there will me more funds (be it individual or pooled) joining the market-making party in the future, each will have their own trading strategy or technique, and some with automated process to do it more efficiently.
Only with the presence of intensive competition will Ripple then become a highly liquid low cost payment system and attract more users.
Wednesday 19 February 2014
Pre-Launced Discussions
Some early discussions about the idea of XMM:
https://ripple.com/forum/viewtopic.php?f=1&t=5864
https://xrptalk.org/topic/1405-xmm-a-pre-launch-discussion/
.
https://ripple.com/forum/viewtopic.php?f=1&t=5864
https://xrptalk.org/topic/1405-xmm-a-pre-launch-discussion/
.
Subscribe to:
Posts (Atom)