/biz/ - Business & Finance

As you know, Ripple have now partnered with a number of exchanges around the world and surely this number will grow. This network of liquidity providers will become the go-to place for buy/sell for Retail Market Makers as these are the exchanges that are servicing transactions for the payment flows of the institutions. If an exchange is not within this liquidity network, then the XRP on these exchanges will drain away as Retail investors begin to move their XRP onto the platform. This will happen due to either: Arbitrage — although other exchanges will not let the price fluctuate too much so as not to miss out on the higher prices. 2. Natural migration to preferred exchanges for rapid buy/sell opportunities

As one can expect, no exchange will want to miss out on the potential for making money where servicing XRP transactions would provide a healthy income stream for the exchange. Unfortunately, most exchanges are simply not large enough with enough capital backing for Ripple to sign them as a preferred exchange.

Now, onto the method of price increase which I believe will occur. We can guarantee that the spread on the exchange for XRP will be extremely tight so as to ensure near perfect entry and exit from the Ripple Preferred Partner Solution (RPPS from now on). The RPPS consortium will also be working within a framework that will ensure co-ordinated price movement of XRP to eliminate arbitrage trading from XRP/FIAT pairs which will then obviously filter into the USDT/BTC markets on these exchanges (thats even if they still exist at this point). It will be a requirement that these 3rd party pairs will need to decouple from XRP so as to ensure that extreme price fluctuations in BTC will never impact the price of XRP. Even a price drop of $0.01 cent will have a dramatic impact on the movement of value when we are talking about Millions of Dollars. 1/3