XRP’s listing on Coinbase was one of the most contentious topics in the cryptocurrency ecosystem owing to the uncertainty associated with XRP and Ripple.
Despite Coinbase previously announcing their intent to list more assets, the addition of XRP surprised many. However, Diar claimed that the reason for such listing is because XRP was backed by its own investors, the Digital Currency Group [DCG].
Diar pointed out,
“The potential addition of XRP has been a contentious topic within the cryptocurrency industry for the possibility of the token being labeled as a security… And as far as the exchange’s own mission of an ‘Open Financial System’ is concerned, the addition of XRP falls in line with the hopes of addressing the remittance market.”
Many people in the community suspect that either Coinbase received a hefty amount of XRP in exchange for the listing, or the exchange explicitly broke its rules and framework with regards to the listing of digital assets.
Diar claimed that Coinbase “abandoned one of their own pillars for the potential listing of a cryptocurrency” and their “Digital Asset Framework,” which listed the prerequisites required of a potential listing.
Questions arose due to the fact that Ripple holds more than 55 billion XRP in escrow with a release schedule, a clear breach of Coinbase’s Digital Asset Framework. Furthermore, there is no clarification from the Securities and Exchange Commission about the nature of XRP. If XRP were to be classified as a security token, the ramifications would be catastrophic to Coinbase and Ripple’s customers.
@yousef, a Twitter user commented,
“I’m not surprised by Coinbase’s decision to list XRP. They’re losing the battle for retail traders to Binance and need to start competing to retain their current user base.
Expect many, many more altcoins to be added to Coinbase in the near future.”
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