RE: How Steemit could learn from Ripple's funding strategy
XRP is a network token that allows you to use the Ripple Network. To my knowledge, it doesn't give you "equity" or ownership in anything.
I stated the same (with other words).
So the funding raised does not back up XRP in any way. If XRP does in fact have legal status other than "gas", please provide a link, thanks.
Ripple started as Open Coin, on the early days there was no "Series A" funding or "Series B" funding of capital. There was the Ripple Protocol and XRP. They actually "survived" daily costs by selling XRP.
Now Ripple holds 64 B XRP. It is today true that Ripple is in no need to sell XRP to fund its daily operations because they are well funded by 2 rounds of capitalization (Series A and Series B). $93 Million.
However those 64 B XRP are still and asset. And is an asset that serves as "collateral" for those Series A and Series B investors.
According to Steemit Inc., I guess they have private investors. But since there are no "funding rounds" and no public information there is no way for the market to establish how well (or not) the value of STEEM is "backed".
In my opinion each time Ripple incorporates capital it becomes less dependant of XRP (as a means to fund the company) and that is exactly what evaporates XRP sell pressure (in other terms, makes XRP more "valuable").
Other than 2 big spikes (to 10,000 sat in fall 2013 and to 7,000 sat in early 2015)... XRP has been mired around 1000 sat. Even with the recent spike, XRP is trading at 20% of the average price in 2013. So it's just a network token.
STEEM is different since Dan has clearly stated his goal is to build a "currency"... and build useful services a top of that currency.
You are entitled to your own opinion, of course, @zer0sum . However in legal terms, XRP is considered some sort of currency or asset. You have 2 examples of this:
What Ripple's Fincen Fine Means for the Digital Currency Industry
Ripple Labs Settles Lawsuit with Former Founder Jed McCaleb
So of course, STEEM or XRP are cryptokens and the US Dollar is just a paper out of thin air. However due to enforcement, subjective value and use, they have value.
I myself don't consider paper money as proper "money", but because I do have to interact with a world that enforces its use and considers that government paper money as actually having "value" I still use it. My own opinion on the matter isn't enough to turn it worthless at this moment.