XRP should be overjoyed this week, but instead there is reason to be reticient.
Startup Ripple and its token XRP were recently listed on the Coinbase Pro platform and the deal set off a pretty typical buying spree, but shortly thereafter, something happened and the buyers retreated. Reason being, there were strong indications of insider trading. Plus, it was rumored Coinbase listed XRP for a big chunk of change.
In April of last year, Bloomberg reported from insiders that XRP had tried to pay Gemini and Coinbase to list their coin. During this period of time, the SEC and other US agencies monitoring exchanges warned them not to list any coin that could be deemed a security.
Using the typical definition, XRP is not a cryptocurrency. Instead, majority opinion deems it to fall closer to being defined as simply a “digital asset.” The key component is that XRP is centralized. Decentralization is pretty much the whole reason to own a cryptocurrency.
However, while many argue that XRP adds no new or viable crypto-economics to the space, Ripple believes that their coin is a better form of money as it is highly scalable and ultimately faster.
Often times, Ripple executives comment on XRP’s price and tease partnerships with large financial institutions. For example, in a Fox News interview lastyear, CEO Brad Garlinghouse trumpeted XRP specifically as the beginning of a “new asset class” solving a “global payments problem.” However, when XRP is getting blasted, the executives remain silent. So, many believe XRP and Ripple should be held to the same laws as other securities.
Overall, this vague relationship was one of the key reasons for concern, and here is how Bloomberg ended that article last April:
Yet the motive to list is still there: A crypto issuer paying to get their token on an exchange “could make 100 times that payment by selling off those coins when it lists,” CEO Dave Weisberger, of CoinRoutes, said.
It would appear that this is exactly what happened.
The official listing of XRP on Coinbase was made on February 25, 2019. Prior to this announcement, the coin was up 6.30% going from $0.31 to $0.34 in a matter of hours. Those who bought prior to the announcement would have seen 10% return on their investment.
The other theory is essentially that XRP went back to Coinbase with a monetary offering and the exchange listed decided to break their standards for the offered amount. In all this speculation, Miguel Vias, Head of XRP Markets, responded to Twitter reports and accusations by saying that Coinbase’s decisions are autonomous and that Ripple did not participate in any way. He also emphasized the position that Ripple does not own the XRP token.
While all the aspects of the debate around XRP continue to rage on, the coin has steadily made gains in trading this week up 1.93% at the time of writing.