Why does Coinbase ignore Ripple’s XRP?

Joining the exclusive club of Coinbase listee’s is a goal for any serious cryptocurrency. The positive effects of this cannot be overlooked; this event is one of those rare ones where both the rumor and the news cause people to buy in. The reasons for this aren’t exactly unknown, as the US-based exchange is one of the biggest and most respected platforms in the cryptoverse.

One coin that was mentioned plenty of times as the next Coinbase addition is XRP. The rumors started way back in 2017, with people feeling that the, at the time, 3rd most valuable crypto project on the market definitely deserves to be listed on the exchange. This rumor, combined with the general market upswing, saw XRP climb to almost $4 USD per coin. The murmur died down somewhat during the post-January downtrend but this was only temporary.

Why does Coinbase ignore XRP?

BraveNewCoin wrote about this back in August and their top 3 reasons for this are:

  • Incompatible ideologies – Amongst the devout advocates of decentralization, distaste for XRP has become commonplace. Along with infuriating the diehards, some aspects of this structure have prevented the cryptocurrency from infiltrating the top exchanges, even with an incentive. Ripple reportedly offered Coinbase a loan of over $100 million in XRP in exchange for a listing, but this wasn’t enough to sway them.
  • Decentralization – One of the key principles cited by Coinbase is decentralization—that the network should be “public, decentralized and enable trustless consensus.” Despite Ripple’s adamant claims that XRP is fully decentralised, this is widely contested within the community, as the company arguably exercise singular control over the XRP ledger.
  • Regulation – Should XRP be classified as security, it would likely become very unattractive to cryptocurrency exchanges at present—as both securities and the exchanges that offer them are subject to significantly stricter regulations.

Why do XRP holders care about Coinbase listing?

This market is dead right now and people are looking for catalysts, such as listing their token on Coinbase. Acceptance and ease of access is everything in the crypto world. The easier it is to buy something, the more demand will increase, which, in turn, increases value. Coinbase makes it simple for non-technically minded people to invest in cryptocurrencies using fiat. A number of analysts have already speculated that one of the world’s largest exchanges, servicing 32 countries, will be adding Ripple shortly.

However, the heavy centralization of its supply and blockchain go against Coinbase’s requirements and against the decentralized principles of cryptocurrency. Some experts feel that it’s worth asking if XRP is even a real cryptocurrency. With all this in mind, one thing is for certain: a lot of stars will need to line up before XRP becomes a part of Coinbase’s all-star lineup.

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Julian Joseph Lehmann
  1. Captain, why do you keep referring to XRP as the 3rd most valuable Crypto by market cap when it’s quite clearly by a long way the 2nd biggest?

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