Yesterday, Coinbase announced that they are exploring some possible coins that they could be adding to the platform. The coins they are exploring are Stellar (XLM), Cardano (ADA), BAT and 0x (ZRX) and ZCash. While previous announcements by Coinbase regarding their listings have brought excitement, this one led many to question the decision by the exchange. On their twitter feed, many of the respondents were wondering why some of these coins would come before XRP (XRP) or Digibyte (DGB) or any of the top coins. But what stood out most was the issue of XRP (XRP). Take a look at some of the responses.
Most of the replies were from people wondering why relatively low cap coins would be added on Coinbase before the third largest cryptocurrency by market cap. While Coinbase has its own reasons for adding XRP (XRP), or any of the other large coins, one thing is clear, if this continues, Coinbase will slowly lose the magic that it has on markets. In the past, a listing on Coinbase has made news, and led to massive price pumps. On the contrary, this announcement has attracted more skepticism than the awe that it has attracted in the past, especially with regards to the issue of ripple (XRP).
So what does this mean for XRP investors? Does it mean thatripple (XRP) is about to outperform XRP (XRP) in the market? Well, that’s highly unlikely under current circumstances. That’s because XRP (XRP) has one thing that stellar doesn’t have, and that’s liquidity. The reason why XRP (XRP) has grown to the level it is today is because of liquidity factor. If XRP (XRP) were as distributed as many who propagate the centralization issue want, it would lose the liquidity that makes it usable by banks. It is for the same reason that Stellar (XLM), which is more distributed than XRP, offers zero liquidity to banks, and hence has to play second fiddle to Ripple.
Therefore, there would be no point in XRP (XRP) losing its key asset, just to get into Coinbase. XRP (XRP) has grown so big that it no longer needs Coinbase for it to grow. At this point, XRP is being used by banks all across the world, and looks set to rival SWIFT in cross-border payments. In Japan alone, XRP will be the primary crypto for the SBI exchange. That’s a much bigger deal than Coinbase, when you consider the influence that SBI has on Japanese banking.
Besides, even in the U.S there are other exchanges that will list XRP (XRP). If by any chance the SEC declares that XRP is not a security, the explosion in the value of XRP (XRP) will be way bigger than a Coinbase listing would have ever made it. It will actually be a loss on Coinbase’s part, since their listing will no longer be relevant. That said, it’s best to look at crypto investments way beyond exchange listings.