One of the oldest cryptocurrency exchanges on the market, Kraken, announced that they’ll introduce XRP and Bitcoin Cash BCH margin trading on its platform. The addition will expand their margin offering to 8 assets, as these two will now be tradable alongside Bitcoin (XBT), Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR), and Tether (USDT).
Immediately the XRP community pounced on Kraken for the way the cryptocurrency was listed. Apparently, the biggest issue here was the fact they listed the asset as Ripple (XRP) and not XRP (XRP). It’s a known fact that Ripple Labs, the company behind XRP, is trying to distance their own brand from its cryptocurrency’s brand in order to avoid potential issues with the SEC.
Kraken explained that there was no bad intention behind the way XRP was listed; according to them, their previous listing policy always included listing the name of the payment protocol alongside the native currency it utilizes. Still, some members of the XRP community pointed out that Stellar Lumens, another popular cross-border payment protocol, had its own asset listed as Lumen (XLM). It remains to be seen if the backlash will have any further effect on the way XRP, XLM, or any other cryptocurrencies are added in the future.
Why does it matter?
As FXempire explains it, most people, for the longest time have used ‘Ripple’ to refer to the underlying cryptocurrency XRP. While it has been okay, things could soon change as the Securities and Exchange Commission pushes for a clear distinction between the two.
Ripple control of a good chunk of XRP, while not a bad thing, has been the subject of increased scrutiny and criticism in the recent past. The fact that most people are attracted to cryptocurrencies because of the promise of decentralization has not gone well with some. With Ripple Labs controlling a good chunk of XRP coins, there is fear that the firm wields too much power making it a central authority in a project that is supposed to be decentralized in all aspects.
Ripple, the company, has in the recent past gone on a rebranding drive, trying to emphasize its relationship with the digital asset XRP. The clarification comes at a time of mounting regulatory pressure as regulators call for more clarity on how the two are related.
The unveiling of a new logo for XRP token marks the first step in Ripple moving to distinguish itself from the token. The new logo emphasizes the need for XRP operating independently. However, the two will still maintain close ties.