Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Other Popular Cryptos / Coins => XRP - Ripple Forum => Topic started by: PRIBO247 on December 12, 2018, 08:56:30 PM
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Coinbase, the dominant US-based crypto exchange that
was once known for only offering Bitcoin, Litecoin and
Ethereum, has been on a coin listing spree.
After listing Ethereum classic, Steller, Cardano, Basic
Attention Token, Zcash and 0x earlier in the year, the
company recently announced that they would be
‘exploring’ whether or not to list 30 more tokens on
their exchange.
Among the 30+ tokens being explored is none other
than XRP, the token that many in the crypto space have
suspected Coinbase or curving for months for unknown
reasons.
Almost every announcement of a new token to be added
on Coinbase would create an uproar amongst members
of the XRP community who feel that their favorite coin
is unfairly omitted.
There are several reasons why Coinbase may be
hesitant to list XRP. For most of 2018, Ripple has been
involved in a class action lawsuit filed by investors who
feel that they were sold unregistered securities when
they bought XRP. They claim this led to significant
financial losses, and are also accusing Ripple of
manipulating the markets. The plaintiffs are seeking a
settlement of $5 million.
The case has now been taken to Federal Court, with
Ripple arguing that XRP is not a security and that the
company and the cryptocurrency are separate entities.
Ripple lawyers believe moving the case the federal
court will give them an advantage because Federal
Court has been known to favor corporate defendants.
Regardless of how the case turns out, such a high
profile lawsuit is unlikely to have been ignored by
Coinbase, which would make sense to be the primary
reason why they have been hesitant to list XRP.
US Regulations First
Unlike Binance, Kucoin or other major exchange,
Coinbase is aiming to position itself as one of the most
regulatory compliant exchanges. This is likely because
it is the only way they can tap into the American
institutional investor base, and hopefully one day
launch their own Bitcoin ETF . Prematurely listing a
token that is currently involved in a legal case which
could determine if it is, in fact, an unregistered security
would be too risky for Coinbase and its users. The fact
that XRP is now the second largest cryptocurrency by
market cap only magnifies that risk.
“The court case may take years.”, Says CZ –
Binance CEO, “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.”
Therefore, we are likely to see many other smaller, less
significant tokens may their way onto Coinbase before
XRP gets approved if it ever does.
Source : https://cryptopotato.com/