Why Have Coinbase and Gemini Exchange Been Reluctant to Add XRP?

Earlier in the week Brad Garlinghouse, the CEO of Ripple, stated that ‘it was in Coinbase’s best interest to list XRP.’ The suspected reason for the reluctance of exchanges to list Ripple is the centralization of XRP. This level of centralization has the potential for XRP to be classified as a security which would require additional licensing from U.S. regulators. However, there may be underlying reasons why XRP has not been listed. As a result, Ripple’s price has been heavily manipulated over the past year.

On January 4th, XRP reached its peaked at $3.63. For a brief moment, Ripple passed Ethereum and became the second ranked cryptocurrency. This run-up was primarily based around speculation that Coinbase was going to list Ripple. This sentiment grew strong, especially after the exponential gains seen by Bitcoin Cash after its Coinbase listing, and most recently Ethereum Classic. But Coinbase sternly responded the very same week by stating they were not going to list new coins anytime soon. After the announcement, the growing wave of hype behind XRP slowing dispersed.

It is assumed that Coinbase does not want to deal with the uncertainty regarding the categorization and regulation of XRP as a security. It is plausible to imagine how listing a security could be a headache for crypto exchanges such as Coinbase and Gemini, but in 2015 FinCEN chose to define the token XRP as a currency, not a security. In addition, a recent lawsuit led Ripple to arm itself with former high-ranking SEC officials. This is speculation, but Coinbase and Gemini probably understand that Ripple is not a security due to the historical and present treatment of XRP. An alternative motive for price manipulation may be possible.

The Winklevoss twins are known to have invested in bitcoin when it was $5, they are also known to be highly invested in Ethereum. A sudden rise in XRP would presumably cause investors to remove money from bitcoin and Ethereum and put it into XRP. Although Coinbase has much more impact than the Gemini (Winklevoss) exchange, there could be a possible quarrel between Brad Garlinghouse and others in the crypto community. Additionally, Ripple could be hated throughout the community simply because it is one of the most centralized cryptocurrencies to date, which ultimately undermines Satoshi’s vision of decentralization.

Ripple even tried to bribe its way on to exchanges such as Coinbase and Gemini. Ripple is reported to have offered $1 million for a Gemini listing, and offered $100m worth of XRP for a Coinbase listing. Both exchanges declined to list XRP.

If Gemini exchange claimed it was not interested in XRP due to the potential scrutiny of regulation, there is no way this could be the true reason. This is mainly due to the fact the Winklevoss exchange recently added the privacy coin Zcash. If any category of cryptocurrency is risky when it comes to the scrutiny of regulators, it is privacy coins. When observing the behavior of these exchanges one must ask, ‘are there alternative motives when it comes to the price manipulation behind XRP? Could there be a rift between the Ripple CEO, Coinbase and the Winklevoss twins?’

Still the question remains; When will XRP be added to Coinbase or Gemini? Once Coinbase adds Ethereum Classic they will inevitably add more coins. Due to the fact Ripple is one of the largest cryptocurrencies by market cap, it is almost an obligation to list the coin. Nevertheless, listing several coins at one time would be a way to defuse an exponential increase in the token XRP. Either way, some of the motives presented are not entirely clear.

Disclaimer: I am not a financial advisor, this is not financial advice. Please do your own research and make objective decisions. This article is intended to educate readers on the possible price manipulation of XRP. The author owns cryptocurrency but does not have positions in XRP.