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.
