Fails to Get XRP Listed on Major Cryptocurrency Exchanges

Fails to Get XRP Listed on Major Cryptocurrency Exchanges

April 20, 2018 Off By dan saada

Ripple controls XRP, the third largest cryptocurrency in the world. While banks have purchased equity stakes and signed onto its network, Ripple failed to get XRP listed on two of the major cryptocurrency exchanges in the U.S.

In 2017, Ripple suggested paying financial incentives to Coinbase and Gemini. By trying to buy its way onto major cryptocurrency exchanges, the company indicated that its future depends partly on getting XRP included in the major trading venues. U.S. officials, however, have cautioned unlicensed exchanges against listing tokens that could be considered securities. XRP is controlled by one company, fueling speculation that the cryptocurrency could fall under that category.

Last year, a Ripple executive asked whether $1 million could coax Gemini to include XRP in its listing in the 3rd quarter. The company also offered to cover related costs and pay out rebates, but Gemini declined the proposals. Ripple’s preliminary talks with Coinbase didn’t produce fruitful results even though the company said that it would lend the exchange over $100 million worth of XRP to begin allowing users to trade the cryptocurrency. Ripple told Coinbase that it could repay the loan in dollars or XRP.

Emmalee Kremer, Ripple’s spokeswoman, said that some of the information about the company’s proposals to the exchanges was inaccurate. However, she declined to state which specifics she was referring to. Kremer said that the company has always been clear about its focus on growing a resilient XRP ecosystem. Coinbase didn’t talk about specific assets, while Gemini declined to comment on the matter.

According to an Autonomous Research report, it is not uncommon to pay for cryptocurrency listings. Getting a reasonably regarded token listed on an exchange may cost $1 million to $3 million. A listing on the top U.S. exchanges would strengthen XRP’s standing among cryptocurrency giants such as Bitcoin.

XRP is an important link between digital currencies with the backing of a Silicon Valley tech firm and the world of banking. The cryptocurrency is designed to change how banks move money across borders, speeding up transactions and lowering costs for all parties involved. Ripple uses incentives to tempt market makers to purchase and sell XRP. The company also sells its digital token once in a while to institutional investors. XRP doesn’t signify an ownership stake in the company, but the close relationship might cause regulators to consider the coin as a security.

XRP would be removed from the unfettered Wild West of cryptocurrencies if it’s deemed a security. It will become bound by requirements similar to those that control assets such as stocks. Investors, however, are not losing hope. Speculation that XRP would be listed in the United States and Ripple’s success in getting new customers have caused the cryptocurrency to increase over 14 times in value between December and January. XRP’s value increased further after CNBC scheduled Brad Garlinghouse (Ripple Chief Executive Officer) and Asiff Hirji (Coinbase Chief Operating Officer) to appear on the same program, creating speculation that a listing would be announced.

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