My previous response to the whole “unofficial listing of XRL on EtherDelta” can be found here https://medium.com/@blogging0987/hello-coolface-5c9a8723af26
Previous response also calculated that Priority Pass investors paid $0.1385375 per XRL token. At the time I was concerned about the unofficial listing on EtherDelta and how technically our investments in XRL are opened to vulnerabilities in the open bear market regardless if it is unofficial or official because our investments are left unprotected by not having a lockdown of XRL from the very beginning. Yes, even if XRL is an ERC20 token on smart contract, it can be locked down until August for trading but it has to be done before all of these. Clearly as investors we were told many times that official trading will happen in August so you think that your investment are safe until August. Unfortunately no, this is how the unofficial listing of EtherDelta will affect you:
When XRL opened on EtherDelta, the price of Eth was around $200 therefore $0.1385 / $200 = 0.0006925 Eth. Which means that will be the price to get back your investment at no profit or loss.
I am worried because:
- EtherDelta demand will not meet the potential sell off from XRL which will result in a drop in pricing all the way through till August “official listing.”
- XRL is pegged to current ETH that is on a huge plummet. This is highly important which most people do not know how significant it is. I will explain.
Currently, Eth is trading at $145 and XRL is priced at 0.00046 Eth from last bid price. If we calculate drop in terms of Eth that will be a 33.6% drop in Eth. Now if we calculate for our investment in fiat value, currently the last bid is priced at $0.0667 and Priority Pass people paid $0.1385 for it. This is a 51.9% drop in fiat value from ico price.
Yes, your investment right now that you thought was safe has loss 51.9% in fiat value. Investing in XRL was a good decision because it locked in at fiat value and it kept your funds from the current bear market. However the “unofficial listing” on EtherDelta, which Rialto.ai team know will happen before it happened has unfortunately screwed investors over.
This is why the screwing isn’t over yet because XRL is pegged to ETH right now. Technically, let say you want to get back your investment right now, it should be priced at $0.1385375 / $145 = 0.000955 Eth. However, can you sell at that price? NOPE, because XRL is already pegged to Eth days ago so right now you have to follow the pegged pricing which has already dropped.
To further explain. I expected a huge bear market up to August and because XRL was supposedly locking up my fiat value funds, that in itself was a sound investment already. Unfortunately, come August, Eth may even be trading below $100 which is real likely because I predict a total market cap of around 50–60 bil. Let say Eth dropped and stabilize around $80. Your investment which you thought was safe because Rialto.ai team told you it will be “officially listed” on the exchange in August, will be worth:
0.00046 x $80 = $0.0368 per XRL (based on current pricing of 0.00046 Eth, meaning it doesn’t drop more which it will)
That will be a 73.4% drop from what Priority Pass investors paid in ico.
Now in August, Rialto.ai team will say “hey guys, we have finally officially list XRL on XXX exchange, enjoy your trading.” When you do go on the exchange and start to do the math and realized your XRL tokens begin trading at the value way below ICO price and you are struck with wth happened, you can come back to this comment and understand what happened.
Rialto.ai has currently dismissed all responsibility by using a clever play with words that the listing is “unofficial” and that “they could do nothing about lock down.” Yes, they can do something about the lock down from the start but not now. And the play with words of “official” and “unofficial” has zero significance when investors are currently bearing the risk. Investors entrusted them with funds and have a certain expectation from what they have been told thus far. I am sure that most of the investors took it at book value that trading officially in August means trading in August. None of you will think there is such a thing as when you trade in August, you are trading at 73.4% below what you paid am I right?
If Rialto.ai, the team of clever PhDs, realized this early on in which they did I am sure just that they did not care enough. If they locked everything down on XRL until August, your funds will open on the market and trading at, $0.1385 / $80 = 0.00173 eth (this is based on Eth dropping to $80).
Therefore, it is fair to you because it has opened to whatever the current market conditions is at that time in August and it adapted to the pricing.
If ETH went up in value to $500, you may not have profited from it but it is still locked in value and still worth what you paid for at ICO and the trading is fair. I only want the trading to be fair like what Rialto.ai promised in the emails and posting. They said they will exceed expectations and ensure that trading is fair to everyone. Does this sound fair to you? Even if you are a long term holder, this still concern you because now your holdings are worth a ton less and won’t you prefer that you are holding investments in the green than in the red? The people that will buy in in August will hold a much bigger percentage on your investments to account for the profits from arbitrage to be paid to you.
For example you paid $10000 for XRL. In August it is worth 73.4% less if Eth trades at $80 and if XRL stayed at 0.00046 eth. So your XRL is now $2660. Someone just needs to buy $2660 worth of XRL and he will be receiving the same profits from arbitrage as you but you paid $10000. I know this is normal when investments drop in value, however you are probably on vacation thinking that your XRL are locked in at fiat value until August.
I think XRL is holding off on their opening of Slack because they expect an onslaught of related concerns in which they can only offer the excuse that it was “unofficial listing” and that “they can do nothing about lock down.”
Disclaimer: Since I already anticipated some of the above the second I realized EtherDelta was going to begin “unofficial trading,” I was able to liquidate a sizable amount of my holdings for 95% profit from what I paid for in the ICO because I know I’ve been technically screwed over by XRL clever use of words. I am not a flipper, but I know that XRL has misled me and I started to worry.