Why will not the popular Crypto Exchange add XRP coins?

  Coinbase vs. Ripple: Why does not the popular Crypto Exchange add XRP money?
  live cryptocurrency event

Why Will not be part of Coinbase and other Ripple XRP exchanges?

Ripple (XRP) is like the black sheep of the cryptic community. The purists say that it is not a true cryptocurrency because it is not decentralized. Important exchanges such as Coinbase refuse to list it.

Despite the criticism, however, the Ripple token, XRP, is one of the largest cryptocurrencies in the world. Aside from short-term market movements, XRP is consistently in the top 4 or 5 cryptocurrencies for the overall market capitalization. With the third largest market capitalization of all cryptocurrencies, XRP is clearly loved by investors – so why will not American cryptography exchanges like Coinbase and Circle Ripple be important?

The lack of XRP listings has made Ripple's investors angry. The cryptocurrency purists, meanwhile, continue to call XRP's currency as a banker. The investors of XRP, on the other hand, see it as a practical solution to the problems faced by the global banking world. Ripple has already formed partnerships with multinational banks, at the same time overcoming other cryptocurrencies. From the point of view of a stranger, it seems strange that XRP is not listed on the major stock exchanges.

So what's the real reason behind Coinbase's decision not to list XRP? Let's go to the end of this problem.

Defenders of decentralization are against

First and foremost, supporters of decentralization have problems with Ripple. These advocates, as BraveNewCoin explained, "consider cryptocurrency as an impostor, representing all the problems of centralization and the current financial system, but packaged like an altcoin."

It's true: Ripple's governance system is very different from bitcoin and other decentralized cryptocurrencies.

Ripple is controlled by a group of private centralized governance. That group launched Ripple with a huge pre-mine. This pre-mine means that the group can give XRP to whoever it wants. Reportedly, Ripple offered Coinbase a loan of over $ 100 million in XRP in exchange for entering the token on the exchange, although Coinbase refused the offer.

Ripple, meanwhile, insists that XRP is completely decentralized.

Ripple Goes Against Digital Assets Framework of Coinbase and Circle

Ripple centralization goes against the principles of exchanges like Coinbase and Circle. In fact, both these major US stock exchanges have published "Digital Asset Frameworks" which outlines the types of tokens to be listed on their platform.

Ripple's XRP does not satisfy this framework – at least in the eyes of Coinbase and Circle.

One of the fundamental principles of the structure of Coinbase is decentralization. Coinbase requires that the network of a token be "public, decentralized and allow consent without trust."

The Digital Asset Framework itself also underlines how the exchanges approach the titles. That is to say, neither Coinbase nor Circle have plans to list the titles. Coinbase has its own Securities Law Framework which states that the activities on the stock exchange should not be classified as security.

XRP could be declared a security

Ripple's centralization of XPP leads to another problem: in the eyes of regulators, XRP could be considered a security.

Indeed, it could be argued that among all the top 10 or 20 largest cryptocurrencies by market capitalization, XRP is the most likely to be declared a security. It is a digital token issued by a centralized entity and the value of the token increases and decreases according to the performance of Ripple (the company).

We may not have to wait long for XRP to be declared safe. Ripple is involved in a series of lawsuits about whether XRP should be considered security or not.

If XRP is considered a security, then it is not the end of the world. However, it would mean that any exchange listing XRP would be forced to comply with stricter regulations. Instead of selling digital tokens, they sell registered securities – something that only authorized authorities can do.

Ultimately, the reckless legal status of XRP – understandably – makes it difficult to sell for US-based exchanges wishing to avoid liability.

Coinbase is considering Listing Stellar (XLM), which is based on Ripple Codebase

XRP problems are clearly related to its questionable legal status and perceived centralization. How do we know this? Well, according to reports, Coinbase is considering adding Stellar (XLM) to its exchange.

XLM is based on Ripple's codebase but is much more decentralized.

Based on this, we can conclude that exchanges like Coinbase have problems with the decentralized nature of Ripple – not another aspect of its code base.

International exchanges are happy to list XRP

Ripple's problems are mostly with trade in the United States. Coinbase and Circle are two of the largest encryption exchanges in America, and no exchange seems to have plans to tap XRP in the future.

The same can not be said for international exchanges. The XRP has not dealt with jokes in other parts of the world. The Japanese exchange DMM Group, for example, has listed XRP since it was launched. This exchange has twice the number of users such as Coinbase – 27 million traders compared to 13 million Coinbase.

However, the addition of western trade would be a huge plus for XRP.

Conclusion: XRP could be listed on Coinbase and Others in the Future

It is important to remember that Coinbase, Circle and other exchanges have not explicitly banned Ripple. They have not ruled out the possibility of quoting Ripple in the future.

It is also important to note that Ripple states that XRP is completely decentralized. They do not see their token as a crypto outsider. They see him as a valuable member of the community that solves the problems faced by the big banks. They also insist that it is not a security.

Ultimately, it remains to be seen whether XRP will overcome these problems. For now, XRP remains the third largest cryptocurrency in the world by market capitalization with no signs of slowing down.

Feel free to read more about the purchase of XRP or the latest Coinbase news:

How to buy Ripple's XRP currency and keep it safe Token Cryptocurrency

The best Ripple hardware portfolios: How to keep XCR Cryptocurrency?

Coinbase PRO makes it official, Ethereum Classic (ETC) Transfers are LIVE

Coinbase increases Buy and sell daily limits for $ 25,000 for Crypto dealers [19659041] crypto training course "width =" 696 "height = "449" />

[ad_2]Source link