With the third largest market capitalization of all cryptocurrencies, Ripples' XRP hit investors. But however attractive it is for some, it is equally disgusting to others.
Denounced as a "bankers' money" by cryptic purists, but praised by its supporters as a practical solution to the problems faced by bitcoins, XRP has divided the cryptographic community. However, this has not stopped its prolific ascent to successful partnerships with banks and beating other cryptocurrencies to become the best interpreter of 2017.
But despite this, XRP has been given to the cold shoulder by trade recorded in the United States. Two of the largest fiat-crypto-gateways, Coinbase and Circle, have refused to list the token – infuriating the Ripple community and casting doubt on the legitimacy of cryptocurrency.
Among the devotees of decentralization, disgust for XRP has become a commonplace This community sees cryptocurrency as an impostor, which represents all the problems of centralization and the current financial system, but packaged like an altcoin.
This is because the technical structure of XRP goes against the ethos of decentralization, incorporating central governance, a large pre-mine and a significant allocation of tokens to its founders
Along with exasperating the irreducible , some aspects of this structure have prevented the cryptocurrency from infiltrating the best exchanges, even with an incentive. Reportedly, Ripple offered Coinbase a loan of over $ 100 million in XRP in exchange for a list, but this was not enough to influence them.
Although Coinbase and Circle have not issued explicit statements explaining the exclusion of XRP, they have published the "digital resource frameworks" that define the requirements to meet the cryptocurrencies to be listed:
One of the key principles cited by Coinbase is decentralization: that the network should be "public, decentralized and allow consensus without trust."
Despite Ripple's unshakable affirmation that XRP is completely decentralized, this is widely disputed within the community, as the company probably exercises a singular control over the XRP register.
This centralization could be one of the key issues that prevent the RPR from getting listed, a thesis supported by the fact that Coinbase recently announced is considering listing Stellar (XLM), which was initially ba sed with the Ripple codebase, but now it is much more decentralized.
The alleged centralization of XRP has caused other problems, and Ripple is currently involved in a series of lawsuits about whether XRP constitutes security.
If XRP were classified as such, it would be likely to become very unattractive for the cryptocurrency trade at the moment, as both titles and exchanges that offer them are subject to significantly stricter regulations.
Although Coinbase and other stock exchanges operate against "broker-dealers" regulated blockchain state, they are unlikely to hire a resource with unstable legal status. This is clearly excluded in the Digital Asset Framework, which states that assets should not be classified as collateral by Coinbase's own Securities Law Framework.
In Unchained Podcast in July, the Circle the founders reiterated this sentiment, stating that "questions about the legal status" prevented XRP from being listed on Circle Invest. However, the token still remains on the Poloniex exchange they acquired at the start of this year. When questioned about the fact that he would remain there, the founders did not provide any closure, citing only the difficult procedure that must be undertaken to eliminate the tokens.
It is a global market
While the great US exchanges have proved problematic, in other parts of the world XRP is not faced with such jokes and unregulated exchanges throughout the world lists the token. Among these there is the Japanese exchange DMM Group, which has listed XRP since the beginning and has twice as many subscribers as Coinbase-27 million, compared to 13 million Coinbase.
Coinbase and Circle, however, remain the key Western gateway to the fiat currency that enters space and the exclusion of XRP has not escaped the news of Ripple's CEO, Brad Garlinghouse, who expressed the desire that Coinbase takes an active role in the development of XRP at the Future of Fintech conference in New York in June:
"As we solve the large-scale problems for institutions, I think it is in Coinbase's interest to participate in this," Garlinghouse said adding that XRP is clearly not a security.