David Schwartz, the Chief Technology Officer of Ripple, has introduced trading bots with Artificial Intelligence powers. These trading bots are in the early stages, defined as rough, and inspired by XRP Ledger AMM – Automated Market Maker. The objective is to enhance the trading experience on centralized exchanges and fetch desirable annual yields.
David said that they estimate the bot to generate an annual yield of 11%. Trading Bot by Ripple looks to demonstrate its capability effectively and reliably. However, David has cautioned that it could not respond to smaller price gains. Also, trading fees will have an impact on the price and profits, which is something that poses a notable challenge for them.
Therefore, David has shared their intention of publishing the code on GitLab. This will allow the public to review the code and make their respective contributions. Also, it potentially opens the door for everyone to contribute to the capabilities of trading bots, not just now but also in the future.
The trading bot by Ripple is in the initial stages. Its full implementation is subject to the performance and improvement that it showcases from being really rough at the moment.
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Another challenge that they are trying to navigate is the tax regime. It reflects resemblance in short and long-term gains. What could increase the level of the challenge is the fact that David has no prior experience using decentralized AMMs. This makes the launch or development of the trading bot a completely new venture for Ripple. When launched, it will join other crypto trading bots like Pionex, CryptoHopper, and Coinrule, to mention a few. Most of them have marked a distinction in the market through the offering of free accounts to users.
The announcement has caused a surge in the price of XRP, for the crypto is up by 4.88% in the last 24 hours. It is currently listed at $0.6348 with an increase of 4.88% and 13.81% in Market Cap and 24-hour volume, respectively. XRP’s value has been down by 0.24% in the last 7 days, but it has represented a rise of 16.305 in the previous 30 days.
David is optimistic about having AMMs on the XRP Ledger with two supported assets. He added that the ones with XRP are likely to dominate by basing the assumption on the design of the algorithm that is known to favor volatility harvesting.
The development of the trading bot is in process; further developments are likely to align with the principles of XRP Ledger. The same can pave the way for new trading strategies within the confinement of centralized exchange platforms.
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David made headlines when he agreed with Franklin Templeton on XRPL’s potential. He aligned his vision with exploration beyond ETH and BTC, thereby better understanding the potential of the blockchain revolution.
