Why Gemini And Coinbase Won’t List Ripple’s XRP
Ripple is without a doubt not lacking in deals, the past few month proving to be a very busy period for the company. But in spite of this streak, there are two deals the company hasn’t managed to snatch- Gemini and Coinbase, two of the most important cryptocurrency exchanges in the United States.
Too Much of a Risk
Ripple may be signing partnerships left and right, but it has failed in achieving traction on exchanges that are based in the US.
Bloomberg report that four anonymous insiders, who are familiar with the situation, allege that Ripple proposed monetary incentives to well-known US-based crypto exchange platforms Gemini and Coinbase.
A Ripple executive allegedly offered a $1 million payment to Gemini if they listed XRP, which was followed various other persuasive efforts in an attempt make the exchange to list the third most popular cryptocurrency by market cap, including proposing to pay repayments and cover supplementary costs.
Inside sources have also stated that Ripple offered to loan Coinbase with over $100 million worth of XRP, along with proposing to let the popular exchange platform reimburse the loan in either XRP or USD, which could possibly let Coinbase gain huge proceeds after the increase in XRP’s value.
Obviously, both Gemini and Coinbase rejected the company’s advances— and both refused to give any further details to Bloomberg regarding the subject.
Ripple has denied that these reported claims are all accurate.
“Regardless, Ripple has always been transparent about our focus on building and growing a strong XRP ecosystem. We want XRP to be the most liquid digital asset possible to enable faster, cheaper global payments,” stated Emmalee Kremer, the company’s spokeswoman.
Not Decentralized Enough
What’s keeping Gemini and Coinbase from adding Ripple’s digital coin XRP is the centralized nature of its company — in spite of constantly claiming that it uses decentralized technology. Because XRP is managed by only one company, it may mean that Ripple’s digital token can be classified as a security — which would need a license from U.S. officials.
Should XRP fall under this classification, it would render the cryptocurrency completely unappealing to current exchanges— seeing as securities and exchanges that sell them are strictly regulated.
Had the crypto exchanged taken up Ripple’s offers and listed the XRP cryptocurrency, they would also be firmly regulated and penalized.
“Listing on an exchange is the integral part of the process of facilitating an unregistered, unlawful, illegal securities issuance to people who are not allowed to buy,” an attorney at Clifford Chance, Jesse Overall told Bloomberg.
So far, it looks like XRP will not be appearing on the lists of Gemini or Coinbase too soon, at least till it sorts out its very serious centralization issue.
You may be interested
US Rep to Hold Roundtable Discussion With Blockchain ExpertJoshua Tayo - September 26, 2018
Currently, the U.S does not have a solid regulatory structure that governs the action of blockchain related innovations. In order…
New ESMA Regulations May Boost Up Crypto Exchanges VolumesAnca Faget - September 26, 2018
Recent ESMA regulations have overhauled the retail trading industry. Although they probably haven’t been met with all the warmth especially…