As the week begun, red crypto figured turned into green again, especially the third largest cryptocurrency, XRP. The most definite reason that influences the sudden spike among these leading cryptocurrencies is directed to Coinbase’s recent announcement. The exchange has recently added most awaited XRP on its professional trading platform ‘Coinbase Pro’ which has quite truly appreciated its value to almost 11 percent within a couple of hours.
The listing announcement made on Feb 25, 2019, goes as follows;
But why now?
There’s something striking expert’s mind. The fact is that XRP is long requested cryptocurrency to list on Coinbase’s platform. While exchange had announced other tokens (which are even lower in terms of market cap) such as BCH and other ERC 20 tokens built on Ethereum network, XRP’s absence is the most specific question that XRP enthusiasts put up.
But as always, such questions remained unanswered.
However, its quite important to note that as per the announcement, XRP is not officially available on ‘coinbase.com’ or on its ‘Mobile Apps’ yet, but available to the users of ‘Coinbase Pro’ for selected regions only.
Additionally, it’s even crucial to note that ‘Ripple, the parent company of XRP token’, is still battling a class action lawsuit for XPR’s securities classification.
Perhaps, it’s great news for XRP enthusiasts, conversely, experts are reasonably calling it as ‘speculations’. As such, US Legal Counsel, Jake Chervinsky believes that the XRP listing decision by Coinbase is to avoid the outweighing cost and legal risk. He reasonably interference that;
It's tempting to speculate about the legal implications of Coinbase's decision to list XRP, but there are too many variables at play to draw any solid conclusions.
The only reasonable inference is that Coinbase believes the benefits outweigh the costs (including legal risks).
— Jake Chervinsky (@jchervinsky) February 25, 2019
In a similar context agreeing to what Jake believes, another crypto enthusiast called ‘JP Schnapper-Casteras’ says;
Fair. I think it’s also fair to asses it by their own (GDAX) framework for new listings,
Jake’s view on Coinbase’s decision indicates that exchange wouldn’t incur the heavy legal cost to start selling XRP after the security classifications henceforth the sudden listing of XRP on Coinbase comes forth. Nevertheless, Jake isn’t alone scrutinizing the reason, Alistair Milne who is an entrepreneur, involved in crypto space since 2014, also highlighted his view. Specifically, he put forth three key questions that majorly focuses on ‘amount being received by Coinbase to list XRP from Ripple’. He says
a/ how much Ripple $XRP were you given in return for listing? (we know it was offered before)
b/ what are the restrictions on you selling the above
c/ did you ask the SEC/CFTC if it is OK to sell a security? https://t.co/3IXCnlsS9A
— Alistair Milne (@alistairmilne) February 25, 2019
XRP Marketcap Upsurged
To note, the third largest cryptocurrency, XRP is still enjoying the spike of 6.77 percent over the past 24 hours. It records the market cap of $13,437,902,845, valuing 1 XRP $0.324857 against USD as per the data provided by coinmarketcap.
Let us know if you agree with Jake’s comment and if you have anything to say on Alistair’s question.
Nevertheless, to note that ‘often discussion on XRP and Coinbase’ is half-ended – it keeps on continuing with a comma, like this time. Few questions remained unanswered.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com