Cryptocurrency enthusiasts saw clearly this week that Coinbase is a market mover, and that even rumors about its trading platform can swing the price of a cryptocurrency. When Coinbase denied that it had any plans to add Ripple to its trading platform, Ripple “rumor gains” were lost in a hurry. After rallying on Monday to $1.08, Ripple's XRP token fell back under $1 on Tuesday.
All eyes had been on the Ripple XRP token over the weekend as its price rose on speculation that it would finally take a spot on the Coinbase exchange. Ripple’s CEO Brad Garlinghouse and Coinbase President Asiff Hirji were scheduled to be on the same panel at CNBC's "Fast Money" TV program on Monday. A partnership announcement seemed imminent to many Ripple enthusiasts. Ripple is both the most heavily traded and largest currency by market cap that isn't on Coinbase yet. But no such announcement was made.
Before the TV show aired, Coinbase tweeted out a reminder of its “measure twice, cut once” policy process for adding a new cryptocoin:
"We wanted to give our customers details about our process for adding new assets to our trading platform … A committee of internal experts is responsible for determining whether and when new assets will be added to the platform in accordance with our framework ... Coinbase will announce the addition of new assets only via our blog post or other official channels. As of the date of this statement, we have made no decision to add additional assets to either GDAX or Coinbase. Any statement to the contrary is untrue and not authorized by the company."
Coinbase’s platform only allows the trading of coins that its management feels are stable enough for novice investors to put money into safely. Coinbase supports only Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Any new coins that might be added to Coinbase must be stable, secure, backed by outside investors, and decentralized. Ripple is not decentralized and might even be thought of as a competitor to Coinbase’s GDAX exchange, the one designed for professional traders and institutions.
Many observers are questioning whether a listing on Coinbase would have had much of a long term impact on Ripple’s value anyway. Ripple is already a cryptocurrency behemoth without Coinbase, with the third-highest market cap of all cryptocurrencies after Bitcoin and Ethereum. Ripple’s management has always been more interested in working out partnerships with traditional financial institutions, like it has with Western Union and Spanish banking giant Banco Santander, than in finding ways to enable higher trading volumes of its coin. Rumor of another such institutional level partnership is the kind of news that really should be moving Ripple in the future.
By: BGN Editorial Staff