Posted on

Ripple Recap: A Week to Remember for XRP

Ripple, the blockchain-based startup and parent company to the XRP currency, has a week for the history books. Despite the overwhelming success of getting the XRP coin listed on top U.S. cryptocurrency exchange Coinbase, the company has had an embattled start to 2019.

It began in mid-February with the announcement by J.P Morgan to create the JPM Coin, a internal payment network stablecoin that would function similar to that of Ripple’s xRapid protocol. Immediately connections were drawn between JPM Coin and Ripple, with the former being poised as a threat in the space of blockchain based transfers. While industry research has since cast doubt on the idea of J.P. Morgan being a serious competitor, Ripple still went through the ringer of analysts claiming the Wall Street bank would put them out of business.

On Feb. 25th it appeared Ripple had turned the corner in terms of fortune. After nearly a year of rumor, U.S. based cryptocurrency exchange Coinbase announced the addition of third largest market cap coin XRP. However, the excitement for the listing was somewhat short-lived. The price of XRP failed to appreciate more than 10 percent on the day, and quickly saw those gains eroded in the market fall that followed. Analysts pointed to the general negative press surrounding Ripple and XRP through the first part of the year as a contributor to the lackluster performance, with most Ripple investors still uncertain following the J.P Morgan announcement.

Nonetheless, the majority of the disappointing price movement was attributed to factors out of the control of Ripple and XRP. As one analyst put it, “Nothing has moved the market,” over the last year of “crypto winter.” While XRP on Coinbase in January 2018 could have taken the currency to unimaginable heights beyond its bullish $4 valuation then, the same action in this current bear climate hardly saw any price movement.

Several more  debacles piled onto the XRP pairing with Coinbase. To start, Weiss Ratings and several Twitter users questioned suspicious market behavior in the hours leading up to XRP being announced on the exchange, leading some to accuse Coinbase of insider trading. Ripple was also targeted by community members with allegations of the company paying for XRP to be listed on Coinbase. While there is nothing inherently illegal about companies paying for cryptocurrencies to be listed on exchanges, it does draw into question the nature of decentralization in XRP and the broader industry. Ripple has yet to be implicated of actually facilitating the listing, and senior exec Miguel Vias addressed the situation directly in a tweet on Feb. 27,

“Coinbase’s listing of XRP (also, not “our token”) was Coinbase’s independent decision – we did not give them anything to make it happen.”

However, some users are still not fully convinced of the atmosphere around Ripple and Coinbase. As if the lackluster price appreciation was not enough, research firm Diar has pointed out that XRP violates the Coinbase digital asset listing policy. According to the Digital Asset Framework guideline posted on Coinbase, Ripple’s majority stake in XRP–even if it happens to be through their escrow protocol–goes against the company’s selection criteria listing new cryptocurrencies.

Despite the otherwise eventful week, still appears in a strong position for 2019 and moving forward in the industry of blockchain-based solutions. On Mar. 4, the company was named one of the top employers in the San Francisco Bay Area. In addition, Binance Research published a report contending that Ripple, with over 100 institutional partners, is trailblazing the field of blockchain-based global transactions and will be hard pressed to lose its lead over newcomers such as the JPM Coin.

The post Ripple Recap: A Week to Remember for XRP appeared first on Ethereum World News.

Posted on

Ripple Senior Executive Denies Paying Coinbase for XRP Listing

Coinbase’s surprising move to list XRP earlier in the week is beginning to create headaches for both the exchange and blockchain-based startup Ripple.

Ripple, the parent company behind the XRP coin, has had to deal with several accusations that the company paid for the currency to be listed on the exchange. After nearly a year of being tied to rumors of a Coinbase addition, during which the XRP currency experienced a series of price dips and rallies in investor anticipation, the actual result of the listing has been lackluster.

XRP pumped 8 percent in the 24 hours following the announcement and official onset of trading on Coinbase, with the currency then seeing an erosion of gains in the days following.

Now, both Coinbase and Ripple are having to handle a series of accusations over the long-awaited pairing.

As previously reported by EWN, several analysts including the prominent firm Weiss Ratings have implied potential insider trading occurring from Coinbase in the hours leading up to the listing.

4 hours prior to the announcement of the #XRP listing, crypto spiked 3.5%. Now the rumors have surfaced concerning the possible XRP ‘insider trading’ among #Coinbase employees. Internal investigation yielded no results.  What do you think – Did they do it?

Another Twitter user, Sir Bitlord, pointed to irregular behavior on the XRP charts in the immediate hours leading up to the Coinbase announcement, again causing community suspicion.

Want to know how insider trading works?

This $XRP listing on coinbase breaks it down:

Ripple has likewise been questioned by members of the crypto community for its role in the Coinbase addition. The company has made a concerted effort to distance itself in terms of control from XRP, thereby promoting decentralization. However, some community members are now accusing Ripple of buying XRP’s way onto the cryptocurrency exchange.

Ripple’s Head of Markets Miguel Vias has heard the allegations against his company and responded promptly. In a twitter exchange with U.K.-based investor Alistair Milne, who promoted the accusation of Ripple paying for XRP on Coinbase, Vias responded that his company had nothing to do with the listing. Instead, Vias claimed that the addition of XRP was an independent decision by Coinbase, stating

We’re happy to go on the record. Coinbase’s listing of XRP (also, not “our token”) was Coinbase’s independent decision – we did not give them anything to make it happen.

While there is nothing new about coin projects paying for their currency to be listed on larger exchanges–or at least it has been rumored as a frequent industry occurrence–the connection between Ripple and Coinbase has been tough for community members to stomach. For one, it makes Ripple’s position with XRP more problematic in terms of centralization, an association the company has done a commendable job of combating. However, it also places too much control in the hands of cryptocurrency exchanges as gatekeepers to coin adoption.

Last year Vitalik Buterin stirred the industry with his claim that centralized cryptocurrency exchanges could “burn in hell.” At the time, the statement appeared directed at the record profits being made by crypto exchanges despite the falling market prices. Now, after a year of “crypto winter,” industry focus has turned once again towards development and adoption. The emphasis on driving growth through cryptocurrency exchanges alone, as both Coinbase and Ripple would likely attest, should remain a relic of the past.

The post Ripple Senior Executive Denies Paying Coinbase for XRP Listing appeared first on Ethereum World News.

Posted on

How Does Coinbase Exploring Stellar Lumens Impact Ripple XRP?

Stellar Lumens (XLM), Ripple (XRP)–The massive Coinbase announcement that came out on Friday has created a stark divide for several cryptocurrency communities.

Published in a press release on the official Coinbase blog, the company confirmed that they are “exploring” five new cryptocurrencies–Stellar Lumens (XLM) the largest by market capitalization–with the potential to be added to the exchange’s offering at some point in the future.

The move by Coinbase has created a wave of positive price appreciation for the currencies, with Stellar posting a gain of 22% since the news was first released. While XLM fans rejoice over the reversal in 2018’s bear cycle, which saw their coin fall nearly 85% in value since the start of the year, it’s Ripple XRP investors that are left questioning the exchange’s decision–in addition to the price outlook for their own currency.

Coinbase and Ripple have long been tied for a potential partnership, going back to the end of 2017, when Coinbase CEO Brian Armstrong reported his company was planning to expand into more altcoins beyond their four-coin selection. At the time XRP was in the middle of a meteoric rise (along with much of the industry) that saw the price jump from its mainstay of 0.20 USD to over 1.00 USD. Following the massive pump in price Bitcoin Cash experienced during its addition to Coinbase (albeit one that cost the company it’s reputation over insider trading), many investors flocked to XRP as the next obvious listing. The coin was Top 3 by market capitalization, just behind Bitcoin and Ethereum, and offered a distinct asset variation to Coinbase customers by being a high liquidity, low price-per-coin currency. The aftermath ended poorly for XRP. Just as the currency neared 4.00 USD in value, and the hysteria at a pitch, Coinbase published a press release in the early days of January stating it had no intention to add new currencies at that time. Ripple subsequently began its plummet in valuation, falling from 3.84 USD to its current price of 0.44 USD.

With the announcement of Coinbase pursuing Stellar Lumens and Cardano’s ADA, the void for a high supply, low priced cryptocurrency will have been filled ahead of a potential XRP listing. While coin supply has little impact upon intrinsic value or investment interest, the lack of a similarly priced token on Coinbase provides a novelty to investors looking to make their dollars go a little further. At the very least, the psychology of being able to purchase a cryptocurrency for under one dollar, as opposed to the next cheapest offering in Litecoin valued at ~80 USD, will be appealing to the vast majority of Coinbase investors who have yet to venture outside of the exchange.

While Coinbase has not published data on what percentage of their user base is exclusive to Coinbase, given it’s U.S. base of operation and emphasis on user-friendly, mobile functionality, it’s fair to say a significant chunk of Coinbase users only use Coinbase. This provides the opportunity for exposing one of the five mentioned cryptocurrencies to a broad audience of new cryptocurrency investors, thereby increasing value and adoption. Ripple could have benefited significantly from reaching this new audience ahead of other currencies. Now, it appears as if the coin may never come to Coinbase.

Conspiracy theorists have it that Coinbase is run by Bitcoin fanboys that have little intention of making decisions that will eat away at BTC dominance in the marketplace. Given that rival exchanges, with much shorter time frames on the market, are eyeing billion dollar profits in 2018, it stands to reason that Coinbase is less concerned with Bitcoin dominance than expanding their platform trade volume. Trading brings fees, and the Coinbase app charges some of the highest in the industry (Coinbase Pro, formerly GDAX, has a much more favorable fee structure).

However, by pursuing Stellar Lumens over Ripple XRP, which share a significant amount of similarity in that XLM was spawned as a fork of XRP by former Ripple founder Jed MCcaleb, Coinbase is making it clear that it has no intention to work with Ripple–at least in the foreseeable future. Coinbase has regularly pointed to a post on its criteria for adding new currencies to the exchange. As stated in the outline, the language emphasizes decentralized cryptocurrencies. Despite Ripple’s efforts to distance itself from the coin XRP, the company still holds a disproportionate amount of the total supply (albeit locked in escrow) that has led to more than one debate over the level of XRP decentralization. In addition, the coin is embattled in a series of lawsuits over whether the coin constitutes a security, which creates further distance for a Coinbase union.

In all, being neglected by Coinbase does not dampen the potential for XRP or its implementation in Ripple’s fintech, but it does hurt investors looking to capitalize on the exposure to nearly 13 million customers. With XLM or ADA likely the first new token listed on the exchange, Coinbase has taken a decidedly negative stance against the world’s third largest cryptocurrency.

On a lighter note, to give perspective for XRP investors, Kraken had a witty response to the Coinbase “exploring” new currencies:

loading…