It has been a roller coaster for the Ripple XRP price with a lot of hopes of the coin is getting a nod from the prestigious American crypto exchange. This could be a good sign for the price but the facts on the ground appear to be telling a different story.
Ripple inventors have been keeping their fingers crossed for long and a clarification on the way forward has been anticipated. Ripple is currently ranked third by market capitalization behind the two market leader BTC and ETH and has been struggling to attract Coinbase eye to no avail.
Coinbase Listing Hype on XRP
There is a lot of support among XRP holders and adorers for the coin to be on Coinbase and once the likelihood appears close, a spike on the price is experienced. According to Brad Garlinghouse, the Chief Executive Officer at Ripple, the firm that invented XRP, Coinbase should list it.
Already, Coinbase is offering BTC, ETH, BTH and LTC and plans are underway add ETC to their portfolio. After the announcement that ETC will soon be included on Coinbase, crypto fanatics were shocked given that ETC is ranked 16 and XRP 6.
XRP has a market cap of $18.9billion while ETC has $1.54 billlion a big reason why it should not have gotten the nod before XRP. However, the company that created XRP holds 50%+ of all XRP coins and tried to vouch for the coins listing at Coinbase by offering $1million.
Ripple Products and XRP the Coin
There is a huge misunderstanding in the crypto-market and people need to separate XRP from the mother firm. Ripple role in the crypto-sphere is to provide software to the banks globally. The software are just enablers for the coin XRP t ride on. The coins’ goal is to speed up processes and reduce costs for payments across the borders.
Brad Garlinghouse has come out openly to state that XRP should get listed on Coinbase and adds that:
“As we solve problems at scale for institutions, I think it’s in Coinbase’s interest to participate in that,” Garlinghouse said Thursday at CB Insights’ Future of Fintech conference in New York.
The vision of XRP is to be used as a tool that makes the work of the banks easier. By lowering transaction costs and increasing speed, XRP will be able to grow in value.
XRP price Performance and Coinbase Listing Rumors
XRP has ever been oscillating between a low of $0.4 and $0.6 but hit a high of $3.98 early in the years when rumor had it that it is being included on the exchange. However, with new regulations requirements in place, it is seen as a setback to XRP. As long as XRP remains centralized, it will be hard for it to get listed on a major American exchange.
SEC has defined which non-securities coins and unfortunately, XRP remains a security and but if Coinbase can get an extra license for securities or Ripple XRP becomes decentralized, the listing will have to wait longer.
A SEC official, William Hinmann says in a statement which did not directly refer to Ripple:
“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.”
During the same conference, Garlinghouse appears to disagree with Hinmann:
“I think it’s really clear that XRP is not a security, it exists independent of Ripple, and would keep functioning even if the company failed.” He continued to add; “I don’t think that our ownership of XRP gives us control. Saudi Arabia owns a lot of oil—that doesn’t give them control of oil.”
This appears to clarify that Ripple XRP firm and the coin are two different entities with different functions. The coin technically helps in money transfer function and XRP investors do not have a stake on the firm. However, the regulations are slowing down more listings and not just XRP but other promising coins and tokens.