The value of Ripple (XRP) surpasses all other cryptocurrencies despite its unstable price. The volatility nature of the market has seen XRP prices keep oscillating. However, the recent speculation that the coin could be listed on Coinbase has complicated matters leading to price swings at a time where the rest of the market seems under siege.
Coinbase failure to list XRP has prompted Ripple CEO, Brand Garlinghouse to publically state that the exchange should list the coin. Ripple is the company behind the creation of RXP and the CEO utterances have been supported by the community and XRP fans across the globe.
Coinbase Exchange Fact File
Coinbase is one of the most popular digital coin and asset exchange in the world. It has its headquarters in San Francisco. This is a regulated outfit and coins getting listed on the platform gain more credibility and global reach.
The exchange allows traders to buy and sell major digital coins including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ethereum Classic will soon be available. Listing of Ethereum Classic a few days ago surprised many who though Ripple (XRP) was the likely coin to be listed next.
XRP market cap stands at $20.6billion and this represents a huge percentage in the entire market. Ripple owns 50% of all XRP tokens in the market and this could be the reasons why Coinbase is not comfortable listing the coin. Ripple previously offered to pay the exchange $1 million and offer that was rejected.
The company Ripple sells blockchain tech products to the banking industry and part of these uses XRP as a tool of speeding up payments worldwide whilst reducing payment costs. The more these institutions use the products, the more the coin gains traction and eventual value.
This has prompted the Ripple CEO to publically argue during the Future of Fintech conference in New York on Thursday that:
“As we solve problems at scale for institutions, I think it’s in Coinbase’s interest to participate in that,”
Coinbase has a way of spiking XRP prices and is billed as one of the most suited platforms to list XRP. Every time there are speculations that the exchange is adding the coin, a spike always ensues. Coinbase has always listed coins that have passed the regulation test and ones that are not securities. Unless the exchanges licenses are amended, getting listed on Coinbase will remain a mirage for Ripple (XRP).
Strict Regulation Laws for American Based Exchanges
Every coin is fighting to get listed on American based exchanges and XRP is no exception. The US SEC is very clear on non security coins and XRP does not meet the threshold since it is not clear whether it is decentralized or centralized. This prompted SEC’s William Hinman to say in a statement that:
“Systems that rely on central actors whose efforts are a key to the success of the enterprise” would be subject to “application of the securities laws. I think it’s really clear that XRP is not a security,”
On his part, the Ripple CEO says:
“For one, he explained, “XRP’s blockchain, or public ledger, exists independent of Ripple” and would keep functioning even if the company failed; what’s more, XRP tokens serve a technological purpose (facilitating monetary transactions) that traditional securities like stocks do not. XRP also does not entitle its holders to a stake in Ripple the company itself.”
“I don’t think that our ownership of XRP gives us control,” Garlinghouse added. “Saudi Arabia owns a lot of oil—that doesn’t give them control of oil.”
Future of XRP Listings on American Exchanges
Garlinghouse has made it clear that he has no control over what decisions Coinbase makes. It is up to the exchange to look at the value XRP will bring to their platform. According to him, there are no timelines of XRP getting a listing nod from other US exchanges like Robinhood, iTBit or square cash App. The only outfits that supports the XRP/USD pair is Kraken which operates in elect States.
However, it is not doom for XRP and once its issue is clarified by the regulators, there will be no stopping. The Ripple (XRP) community and XRP holders’ hopes are still high and en entrance to the US market will be the pinnacle of the coin given its products to the banking sector.