As we wind down 2018, crypto traders have endured an almost 12 month wait for Coinbase to make a decision whether to list XRP or not. Around the 4th of January this year, the price of XRP climbed to $3.84 due to anticipation by crypto traders that the digital asset would be added on Coinbase. However, this did not happen and the digital asset fell by almost 25% the following day after representatives from the exchange dispelled rumors that listing XRP was in their plans.
Pending Lawsuits Claiming XRP is a Security
Around the same time period, the team at Ripple was served with lawsuits that claimed that the digital asset was an unauthorized security. One of the cases – that is a consolidated class-action suit – has been moved to Federal Court at the request of Ripple attorneys. Ripple’s lawyers applied for the case to be moved to Federal court because some of the plaintiffs were residents of other States other than California where it was first filed.
Many Crypto Enthusists Believe XRP Is Not A Security
It is due to the above lawsuit in Federal court that many crypto enthusiasts believe that the team at Coinbase is waiting on the outcome to decide whether to list the digital asset or not. However, many have concluded that it is not a security. Even the CEO of Binance, Changpeng Zhao, shared his opinion on twitter that XRP was not a security. CZ’s exact words were as follows:
The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn’t look like a security to me, but that’s just one person’s opinion.
The full tweet can be found below.
Coinbase Needs XRP Now More Than Ever
It is no secret that the crypto bear market is hurting not only individual traders and investors, but also ICOs and cryptocurrency exchanges. The trade volume of Coinbase has decreased by 80% since the last Bull Run of December 2017 and January 2018. This is according to an August 2018 report by diar.
This then brings us to the first reason why Coinbase needs XRP now more than ever. Listing the digital asset would attract users to the platform who are holders and fans of XRP. HODLers of the digital asset have been known to be very enthusiastic about the vision of fast, efficient and cheap transactions made possible by the XRP ledger. Listing XRP on the platform, would excite an already enthusiastic community to create new accounts on the platform.
Secondly, with the new users and increased trade volume brought about by XRP, the exchange is surely to gain revenue from trading fees. From a business point of view, no executive running a company hates profit brought about by new business from clients. Listing XRP would bring in more traders automatically boosting revenue.
Thirdly, the aforementioned hodlers and enthusiasts of XRP are now convinced that Coinbase has lost its credibility by listing ERC20 tokens linked to projects that many believe are not worthy of the exchange. Listing XRP might just be the move that will boost the reputation of the exchange in the eyes of many traders. In the world of business and finance, reputation is key.
XRP enthusiast @C3_Nik took to twitter to express his opinion on the recent announcement by the exchange that it was now supporting PayPal withdrawals.
With time and as the bear market continues to cause losses for crypto exchanges, the tables might have turned for Coinbase in the sense that it might need XRP now more than ever. Listing XRP might just be the spark needed to ignite a rush of new accounts on the platform as well as increasing its trade volume in the current bear market. There is also the fact that the reputation of the exchange might also be on the line as many traders have migrated elsewhere. This is due to the exchange delaying to list other prominent digital assets such as Stellar (XLM) and Cardano (ADA).
What are your thoughts on Coinbase delaying to list XRP since January? Do you think the exchange needs XRP now more than ever? Please let us know in the comment section below.