Coinbase exchange s a huge cryptocurrency market influencer and any digital coin aspires to get listed on it. Getting listed here means a price surge, recognition and other perks that come with it. When Ethereum Classic (ETC) got listed, a price surge was noticed within 24 trading hours. When the Ripple (XRP) rumor was going round that is getting listed on Coinbase, XRP hit a high of $4.
Many crypto lovers and haters were expecting Coinbase to list Ripple ahead of Ethereum Classic (ETC) given that XRP is ranked 3rd and ETC is placed 18th by market cap. The exchange seems to have erred given that it was just a few days Ethereum was declared a non-security entity by the SEC leading to raised eyebrows across the crypto-sphere.
ETC Price Spike before Trading on Coinbase
With a lot of speculation in the market about price manipulation the price of ETC got a 20% spike even before the listing platform announced the exact date as to when the coin will go live. This came at the backdrop of the SEC convening a hurried meeting to determine the fate of ETC mother, Ethereum.
The question in the cryptocurrency circles is the relationship between Coinbase, which is US based and the SEC, who have the final say on which coin is a security or not. Could insiders from the exchange be having a hand in SEC decisions? Maybe not but this is why the listing is still a hot topic for the crypto market.
Ethereum Classic is not the best Coinbase Fit
Going by past market listing trends, Coinbase had only listed four coins prior to Ethereum Classic (ETC). out of logical necessity, Ethereum Classic was not the natural choice to fill the slop. There are other successful coins that could have been listed and Ripple is one of these. It has been the exchanges trend to list only top coins in terms of value in the market. BTC comes first than followed by ETH, (third placed XRP missing) BTC and the list should continue through LTC before getting to the lowly placed Ethereum Classic.
In the past, Coinbase has always stated that they only interested in non-security coins and the timing of listing Ethereum Classic. this will keep them away from the legal battle the listing might arouse because that are not a registered outfit that sells securities. Listing ETC before being cleared not a security has baffled market stakeholders given that Coinbase does not sit at the SEC.
The Fortune magazine has noted the market trend and wrote quoting the Jaxx crypto wallet maker, Decentral Company CEO, Di Iorio:
“If Di Iorio had any indication about the SEC’s plans, he didn’t let on-other than to take notice of a clue the night before: Coinbase had announced it would add Ethereum Classic, forked out of the Ethereum blockchain, to its cryptocurrency exchange. Coinbase, which has been careful not to list any cryptocurrencies that might be a security would likely only add Ethereum Classic if it was sure Ethereum and its kin had officially escaped the label.”
Another Coinbase associate who requested anonymity due to his interests in the exchanges adds:
”What I find interesting is Coinbase has been vocal in saying they can’t list new assets right now because they don’t know what is and is not a security, two days before the SEC’s public statement, Coinbase announces that they are going to list Ethereum Classic. They must have known about the SEC decision. Otherwise, they would not have made that announcement because they would have had to be regulated as a securities exchange. It’s like really? That’s not a coincidence. There are cabals acting in the background that are largely unfriendly to other securities and if you look at the language in Hinman’s speech, I’m guessing he did not write that, but it was influenced by other parties who are hostile to tokens that aren’t Bitcoin and Ethereum.”
The discussion on which coin is a security or not has been affecting the performance of all coins in the market and the fast it is resolved the better for the whole market. The hostility of the major coins from foreign countries seems to play a role in the whole saga given that a large part of BTC and ETC mining resources are controlled by the Chinese.
Future of Ripple (XRP) on Coinbase
Hope for Ripple (XRP) getting listed on Coinbase has been dashed but the delay does not mean finality. Ripple needs to come clear on its centralized structure to one that the SEC understands and lessen the Ripple Labs control over its operations.
However, Ripple rumor that it is shifting base to Japan could usher a new era for the coin and the community as well. This would unlock many opportunities that cannot be cracked at the moment. Japan is friendlier to crypto regulations and could offer Ripple (XRP) a soft landing pad for it to thrive.