Coinbase snubs XRP, adds low ranking cryptos. How will this affect the coin?
XRP has been ignored by Coinbase yet again! On Friday, the exchange announced that they’ll “explore” 5 new cryptocurrencies. The coin’s being explored includes Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX). It seems that the exchange is filling the need for cryptocurrencies with a high supply and low priced.
Ripple which recently issued a clarification that the company Ripple is different from the cryptocurrency, XRP. And the digital asset being ignored a second time by the exchange platform has incensed the XRP community. Moreover, the crypto’s mentioned in Coinbase’s announcement has seen an increase in their prices. Stellar especially has seen quite an upsurge since the announcement, the coin’s price has increased by 22%.
But the news has got XRP investors in a bind, they’re questioning the price outlook for the cryptocurrency. The community expected the coin to be listed on Coinbase, way back in 2017 following an announcement by the exchange’s CEO. Brian Armstrong, CEO of Coinbase had said that the company planned to add more altcoins to the platform. A lot of investors expected the exchange to list XRP because the coin was experiencing a meteoric rise at the time. The digital asset had risen from its mainstay of $0.20 and jumped to over $1.00.
XRP, being the third largest cryptocurrency in the market is a currency with high liquidity. Additionally, the price per coin being lower offers an advantage to investors. And the users of the exchange platform would have benefitted from the distinct asset variation. But Coinbase’s announcement from January 2018 stating that they wouldn’t add new currencies at the time dashed their hopes. The cryptocurrency, which was trading at almost $4.00 at the time, plummeted. The downward spiral has continued for the coin which is currently trading at $0.444.
Is Coinbase making it clear that it won’t add XRP?
The exchange’s list announced on Friday includes Stellar Lumens (XLM). By favouring XLM over XRP, is the exchange saying it doesn’t intend to work with the digital currency? Well, it seems so, at least for the foreseeable future. One major reason could be the exchange’s criteria for adding new cryptocurrencies to the platform. Coinbase places great emphasis on the decentralization aspect of cryptocurrencies. And the ongoing debate over the level of decentralization in XRP could’ve played a part in this.
While the Ripple has distanced itself from the cryptocurrency, the company still holds a large number of XRP. And even though the coins are held in escrow, several questions have been raised about the digital asset’s decentralization. Moreover, the company has been hit with several lawsuits which allege that XRP is a security. This also could be a deterrent for the exchange platform to list the cryptocurrency.
However, it doesn’t look like the cryptocurrency’s potential will be dampened by Coinbase’s decision. But this negative stance will hurt investors who want to capitalize on Ripple’s exposure to over 13 million customers.
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