Roger Coleman Comments on Ripple and It’s Continued Growth

 

Roger Coleman recently put a ribbon on Q2 with his comments on the Ripple’s continued growth in the market.

“If I had to sum up the second quarter in two acts, it would be:

I.               Playing Offense

II.             II. Winning the Game. It’s hard to emphasize all of the goodness that emerged from this quarter in a single note, but I’ll do my best.” Said Coleman.

With Regards to the SEC Lawsuit: We Won!

The fight against the SEC was always about one thing: getting clarity that XRP (in and of itself) is not a security. We got that. XRP is NOT a security. XRP is one of only two assets in the US with that distinction (Bitcoin is the other). Crypto as compensation, developer grants, charitable donations are all NOT securities. And (to borrow a line from Stu) the finding on programmatic sales shot an arrow through the heart of the SEC’s campaign against exchanges trading “digital asset securities.” In fact, as soon as just a few hours after the ruling, Coinbase, Kraken, Bitstamp, Binance US, and iTrustCapital all relisted XRP for trading.

The Judge did find that institutional sales were unregistered investment contracts. Nearly all of our ODL business is outside the US (without objection from foreign regulators) and we’ve made solid progress over the past 2.5 years securing foreign licenses to run our business and thus, we believe, outside the SEC’s jurisdiction. In addition, these sales were to sophisticated commercial counterparties and we believe other securities laws would exempt these sales from registration. That will all need to be worked out in future legal proceedings. In the immediate near-term, we will make changes to some of our customer relationships in the US, but we expect our non-US transactions (transactions between our non-US entities and non-US counterparties) will continue as usual. You can read more about the ruling in our blog post here.

“While the case isn’t entirely over and done with, we are certainly at the beginning of the end.” Said Coleman. “We feel good about the win – it’s not only a win for Ripple, but a win for the industry – and that’s huge… especially with further regulation by enforcement with Coinbase/Binance and the SEC over this past quarter.” He added.

Defendants can now rely on the Ripple decision in defense of their cases. (Some of you probably noticed that Coinbase’s stock rallied 25% on our news)

The ruling also drew the attention of many legislators and we will now use our leadership position to continue our efforts to positively influence crypto legislation in the US. 

 

Welcoming Metaco to the Ripple Family

 

The big news in May, of course, was our acquisition of the Swiss-based technology company, Metaco, for $250M (full text). Not only was it the largest acquisition Ripple has done, it was also one of the biggest deals in the industry over the crypto winter. As I told team Ripple at the beginning of the year, it’s our year to play offense. And, we will continue to do that. 

While the ink on the deal was still drying, a cross-functional subset of the Ripple team jumped into action and has been focused on integration, working closely with Metaco’s leadership team. We hosted team Metaco in London for an onboarding week in June, and have been off to the races since then. I had a chance to visit the Metaco office in Switzerland after the PointZero forum event, and the team is very excited about the opportunity ahead. 

MAS License

As an important step in our global momentum, we received approval "in principle" from the Monetary Authority of Singapore (MAS, the central bank and financial regulatory authority of Singapore) on our Major Payments Institution License for Digital Payment Token services. Approval “in principle” means they are prepared to grant the license. Having this license ensures regulatory certainty for our existing business in Singapore which will enable further growth not only in Singapore, but throughout the APAC region.

Out of around 180 crypto companies that have applied for a DPT license with MAS, fewer than 20 in-principle approvals (and actual licenses) have been granted to companies – thus far to the likes of Crypto.com, Coinbase and now, Ripple. In terms of next steps, we still need to complete a series of administrative, governance and organizational steps before final approval. Given the growth of our Singapore business over the years, the importance of obtaining this license cannot be overstated.

 

 

Tender Offer

 

As many of you already know, this past week we closed a tender offer for our Series A and Series B Preferred shareholders with preferred shares. We allocated $100M in total to repurchase shares at ~$61/share, and with 70% participation, we were oversubscribed – with a 66% payout of shares submitted. With this tender we return more than we raised with the Series A and B, and I am very pleased to have been able to provide this kind of liquidity to our shareholders. 

 

 

 

As you likely recall, we exited Q1 with a lot of uncertainty around the banking sector, which had a number of impacts on our business – namely in terms of customer volume (we ended April at a lower month over month ODL run rate vs March) and a reevaluation of our risk appetite. Because of these factors, we missed our quarterly target for ODL volume and transactions – and though we didn’t see the quantity of transactions (volume or number) we forecasted, we improved the quality of our customer base dramatically through a reset of our ODL go to market and customer risk management strategy. It is unlikely the pace of growth we saw in 2022 will resume in the near term (when ODL volume grew by 5x) – however, with a high quality customer base, the acquisition of a foundational infrastructure technology with Metaco, and more than $1B in the bank, I’m confident we have the tools in place for a bright future.

 

 

Ripple Impact

 

We continue to stay focused on social impact efforts, including our University Blockchain Research Initiative (UBRI), which falls under that umbrella. We just celebrated 5 years of UBRI, and continue to grow the program, including with the recent addition of the University of Toronto to the ecosystem.  UBRI has now established more than 50 university partners across six continents, awarded 590 fellowships and scholarships, and supported the publication of over 1,000 research articles and presentations. \

We also published an Impact Report (intended to become an annual report). It touches on a range of the ways we made an impact in 2022, including ways our employees contribute to the communities we live and work in, and serve. From the earliest days, the vast majority of our employees have given back by donating their time and money both locally and globally, every year. Our social impact programs (and their positive contributions to our culture) are one of the many reasons why people choose to join – and stay at – Ripple. And, it speaks for itself. Ripple continues to earn recognition as a best workplace – earning #8 on Fortune’s list of Best Workplaces in the Bay Area, and placement on Fortune’s list of Best Workplaces for Millennials. 

 

Global Team Growth

One of my top priorities for the year was global team growth, prioritizing non-US hiring. Acquiring Metaco (which has an almost entirely non-US team) was a great boost toward achieving a better balance, but we also made meaningful progress through our standard hiring process, as well. More than half of our hires in Q2 were non-US based, and Q3 hiring is pacing even better.

We also welcomed a new board member in May, Warren Jenson. Warren brings to the table over 30 years of leadership as a seasoned CFO and global operations leader at companies like Amazon, Delta Airlines, NBC, EA and Nielson. He is also the chair of Ripple’s audit committee, bringing his expertise to advise on company growth and financial performance. We are thrilled to have him on our team.

Predictive Analytics - Informing Disaster Preparation and Response

 A longtime presence in the NYC entrepreneurial community, Roger Coleman leads Disaster Tech and focuses on pathways of identifying dangers and preventing risks associated with natural disasters. One area of focus for Roger Coleman and his New York team is predictive analytics that help assess energy infrastructure risks and vulnerabilities.

This type of analysis relies on existing data sets in identifying patterns and quantifying the likelihood and potential severity of a disaster. Big data may be applied to a specific location, as when a municipality in a valley evaluates the risks of a major landslide, given weather, geology, vegetation, and other variables. In other cases such analytics can span vast areas of the globe, such as when assessing the risks of hurricane.

The value of big data is in the sheer amount of information that past natural disasters have provided. For example, every time a storm hits, sensors generate real time data on weather patterns, wind levels, and rainfall. Early warning signs that make it likely that Category 1 rainfall will develop into a Category 5 storm can be extrapolated from the thousands of storms on record.

At the same time, machine learning algorithms enable data to be automatically collected and analyzed, with each additional set of data points providing deeper and more accurate understanding. The end result is that local and national agencies are able to set up relief protocol appropriately sized to the actual level of risk and its local impact.

The Role of Large Technology Systems in Disaster Relief

 Based in New York City, Roger Coleman is a longtime entrepreneur who guides Disaster Tech and delivers solutions that enable municipalities, industries, and governments to mitigate the risk of natural disaster. One focus for Roger Coleman in NYC is deploying early warning systems that enable coordination of emergency response agencies and groups to earthquakes, hurricanes, and wildfires.

Over the past 15 years a number of large-scale systems have been developed that help reduce risks associated with often violent and unpredictable natural events. An example is the SERVAL project, which was launched following the devastating 2010 Haiti earthquake. It enables direct communication by cell phones in cases where network coverage is broken. In tandem with this, the TERA (Trilogy Emergency Relief Application) system of SMS texting was developed as a means of ensuring robust two-way communication by aid agencies and those impacted by natural disasters.

Following the 2015 Nepal earthquake, government agencies focused on another aspect of the equation: locating humans trapped deep underground when structures fall or cave in. The NASA Finder is able to detect a single human heartbeat, even when the victim is under as much as 30 feet of rubble or 20 feet of solid concrete.

Another aspect of mounting complex rescue operations in inhospitable terrain is having a comprehensive, accurate 3-D map of the area. The ALIRT (Airborne Ladar Imaging Research Testbed) system accomplishes just this, providing details such as road travel conditions and points where helicopters can land. Such information is vital in enabling aid agencies to plan out the delivery of essential items such as water, food, tents, medicines, and blankets.

Disaster Tech's DICE Platform Tackles Disasters with Technology

 Disaster Tech is a veteran-owned organization that provides people with advanced disaster preparedness, response, and resilience tools through the use of technology. The tech company gives people the opportunity to plan, train, and prepare ahead of unforeseen disasters that might occur in the future using their Decision Sciences Integrated Collaboration Environment (DICE).

DICE is a situational awareness platform that can take in data, situation models, and texts, process them into comprehensive information, and share them across various teams involved in the crisis management. Disaster Tech designed the platform to provide its users with real-time information, which helps them make the right decisions before, during, and after the crisis.

One of the features of the DICE platform is the event monitor, which allows users of DICE to combine hazards and threat data to figure out which critical assets are at risk. The event monitor issues an automatic alert to users via text, email, and other communication platforms when an asset is being threatened, and also provides information on what form of threat the asset is facing. Additionally, DICE’s event monitor also recommends possible protective actions to users in order to minimize risk, and gives responders time to prepare for protective actions.

The Mission Manager is another feature of DICE, and it helps users of the platform coordinate and manage their various tasks in a way that improves their chances of success. This feature also allows users of the DICE platform to have a full view of how resources and tasks are being managed and coordinated before, during, and after a crisis. Also, since information is vital to managing emergency situations, the built-in notification capability of the DICE platform allows users to text and share emails with other members of their team as the situation unfolds, ensuring that every team member stays updated throughout the crisis.

Since Disaster Tech built the DICE platform, they’ve tested it in real-world situations a number of times, including in 2020, when the Red Cross reached out to Disaster Tech following the Camp Fire in Butte County, California, in 2018, the most destructive wildfire in California’s history. The Red Cross tasked Disaster Tech to prove that they had a system that could track the rebuilding process of the structures that the fire had destroyed.

Using the DICE platform, Disaster Tech gathered data which showed that many of the affected individuals hadn’t rebuilt their destroyed properties, and the wildfire had left thousands displaced. The DICE platform produced this result in a fraction of the time that other manual processes would have taken, and it also cost significantly less.

Also, Disaster Tech teamed up with utility industry partners to collect data from Hurricane Barry, which made a category one landfall in Louisiana in July 2019. Disaster Tech then utilized the data gathered from the hurricane to create a model through which the DICE platform could predict areas that were most likely to experience power outages at the parish level.

The predictive model consisted of data from three days before the hurricane began, the landfall day, and three days after the hurricane’s landfall. From the visualizations of the data on the DICE platform, Disaster Tech concluded that the model they designed predicted the areas that experienced power outages because of the hurricane with a high degree of accuracy. Disaster Tech also added live traffic data alongside available housing into its model in order to provide work crews and technicians with the best routes to access the areas experiencing the power outages.

The Recovery Process for Those Affected by Terrorism

 Terrorism is characterized by the use of violence against innocent civilians, with the explicit intention of creating terror or panic within a population. The ultimate goal of terrorism is to advance ideological agendas, which may be rooted in political, religious, social, racial, or environmental influences.

The violence and tragedy of terrorist acts can leave people and families with lasting trauma. This trauma is a result of the sudden and violent disruption of their lives. The aftermath of a terrorist attack is therefore one of intense suffering, apprehension, and grief, and the recovery process can be long and challenging.

Families affected by terrorism deal with different struggles in their journey to recovery, meaning the right support and resources for their healing process is essential. The recovery process is unique to each individual, as while some may recover quickly, others may take years to process and heal from their trauma.

Acknowledging and understanding the trauma experienced is a crucial step in the recovery process for terrorism-affected families. By acknowledging their trauma, individuals can begin to accept what has happened and start the process of recovery. Additionally, understanding the complexity of trauma can help individuals recognize the different ways it may be affecting them and seek appropriate support.

The recovery process for families can be greatly aided by mental health specialists. Through therapy sessions, individuals can get the resources they need to process their emotions, communicate effectively, and be enabled to develop healthy coping mechanisms. Group therapy sessions may also serve as a beneficial means to provide individuals with a supportive community of people who have shared experiences.

A variety of therapeutic and rehabilitative settings use art therapy as a technique of self-expression and healing. The impact of terrorism and disaster on children can be lessened by art therapy, according to research. Children affected by terrorism may find it challenging to articulate their feelings and experiences in words.

Art therapy provides an alternative form of communication that allows children to create a visual representation of their thoughts and emotions, which can help them process their experiences and begin to heal. The creative process can also be an avenue for relaxation, focus, and meditation. Furthermore, violence and terrorism can cause a sense of loss and confusion in children about who they are. Art therapy can help children explore and express their identity, values, and beliefs. Through creative activities, children can reconnect with their interests and strengths, which can help them rebuild their sense of self.

Community support is a vital part of the recovery process for persons impacted by terrorist attacks. This may be in the form of emotional and psychological support, financial assistance, housing support, or legal advice. Families affected by terrorism may be facing significant financial burdens, and community members can help alleviate some of these pressures by providing financial support. Housing support can be provided by offering temporary accommodation to families who may have been displaced due to the event. Legal advice can be provided to help families navigate the legal system and access the support and resources they need. The support of friends, family, and other members of the community can provide a sense of comfort and unity with those impacted by terrorism.

Individuals affected by a terrorist attack may struggle with sentiments of rage, resentment, and a desire for vengeance. Forgiveness, however, can provide a means to healing and moving forward. In this sense, forgiveness does not mean forgetting the events that happened, but entails letting go of negative feelings and shifting toward a positive viewpoint. People who have been harmed by terrorism can better regain control and influence over their life by forgiving those who have hurt them. Forgiveness in the healing process can be very challenging, however, because the effects of terrorism inevitably entail a great deal of misery and pain.

Disaster Tech Wins 2022 Microsoft Partner of the Year Award

 A New York-based investor with experience in executive leadership positions, Roger Coleman owns Coleman Ventures & Coleman Group Partners in NYC. In addition, he serves as the chief strategy officer of Disaster Tech in Washington, DC. In recognition of Roger Coleman and his company’s disaster preparedness work, Microsoft honored them with its Partner of the Year Award for Disaster Tech’s integration of Azure, Microsoft’s cloud system, in its software.

The Partner of the Year Awards recognize companies of all sizes for creating new products and services that utilize the entire spectrum of Microsoft’s offerings. To reflect the continual technological advancements originating in the private sector, Microsoft does not maintain a fixed list of categories each year. Instead, it grows the list to address evolving uses for technology in the workplace. In 2022, examples of new categories included the Compliance Award, which celebrates novel cybersecurity measures, and the Operational Excellence Award, for the logistical importance of running a company smoothly.

In 2022, over 3,900 nominees applied across 126 countries. Microsoft first announced the finalists and honorable mentions on its website in June, then publicized the winners at its Microsoft Inspire conference.

About Disaster Tech's DICE Platform

 An investor who donates his profits to charities chosen by his partners at Coleman Ventures & Coleman Group Partners in NYC, Roger Coleman is also the cofounder and chief strategy officer for Disaster Tech. With the assistance of colleagues with military and government experience, Roger Coleman’s New York firm developed its DICE (Decision science Integrated Collaboration Environment) platform.

When a disaster occurs, a company’s disaster preparedness team can use the DICE platform to alert the rest of the company. Using quantitative and visual data from academic and government sources, the team can explain the type and scope of the disaster, and list any company assets in imminent danger. The platform can also alert employees to damage to critical assets.

To expedite communication, DICE is compatible with the most commonly used work productivity apps and services. Teams can import PDFs and raw data from DICE’s dashboard into Microsoft Teams. They can also email or text employees directly within the app, in case other communication methods are nonoperational.