Coinbase platform and Ripple XRP
Few days ago, Ripple XRP grew exponentially in value at the start of this week, making it rising from 0.90$ to 1.06$. The reasons for that were the rumors that the Coinbase platform was planning to add it to currencies that can be traded.
It is well known that the American company Coinbase enjoys a great reputation and confidence from American investors in the digital currency and they are using it to buy and sell Bitcoins in addition to Bitcoin Cash, Litecoin and Ethereum. They are the four currencies that can be traded on this platform.
After hours of rumors and claims from thousands of fans of the world’s third-largest digital currency, the platform responded, as it did the time before, that didn’t plane currently to add any digital currency.
As every time, they said that they were very keen to maintain the security of their users and that they planned and studied adding any cryptocurrency they thought to be in the interest of investors on the platform.
The official statement published by the company pushed the price of the famous digital currency to a decline of about 0.80$, supported also by the strong decline in prices of other digital currencies.
Although thousands of investors have asked the company to add this currency to the four currencies that can be traded, but its rejection made us look for the real reason behind this mystery.
In this article we will look at the hidden reasons behind the refusal of the Coinbase platform to add Ripple XRP.
1- Decentralized digital currency:
The first reason as it seems for which the Coinbase company didn’t want to disclose was that this digital currency is a decentralized currency and there is a company behind it.
The Ripple company owns billions of this currency and can manipulate the price of the currency by displaying the currency units for sale and thus leading to the collapse of their value.
Although the company is making good profits for itself mainly from the services which it is providing to banks, and although it enjoys the confidence of large financial institutions, but the billions of this currency scare the defenders of the decentralized and mineable digital currencies.
The company put forward a plan to offer 55 billion of XRP. This plan means that each month it will offer 1 billion units to sell and that over the next 55 months it will end its monopoly of this currency, stressing that the mechanism of selling this quantity will be safe and good and will not adversely affect the price of supply. The company started this plan since the end of the last year.
2- Competition and different vision:
There is another reason behind this unjustified and indirect rejection of this successful digital currency: competition and differing vision.
It is clear that Coinbase supports Bitcoin and its family which are the currencies that can be modified on their own technology by their enthusiasts, while Ripple XRP which is owned by one company that will continue control it, is a very fierce competitor and different from Bitcoin and her sisters.
Ripple company has successfully concluded agreements with dozens of banks and financial institutions including Western Union, MoneyGram and other institutions, and offered its currency as the best in all respects as it is less expensive and faster in remittances and safe.
The most horrifying point for the Coinbase platform and the Bitcoin community is that this digital currency has a vision of rapprochement with the global financial system rather than fighting it.
The competition between Coinbase and Ripple shows an important issue: the first is providing GDAX, a cryptocurrency exchange platform for businesses and professional traders that provides solutions to traders to accept payments by digital currency, and who knows they may have plans to target banks as well.
This is the second time that rumors have been circulating about the direction of the Coinbase to add Ripple XRP to the trading, and the company published an official statement denying the rumors. While thousands have submitted an electronic petition for approval without responding to their demand to keep the third largest cryptocurrency outside the largest trading platform in the United States.