For the past several weeks, there have been rumors circulating about Coinbase's plans to integrate Ripple XRP on their GDAX platform. The anticipation about a possible launch grew even higher when Ripple broke a new all-time high record the other day. However, yesterday Coinbase confirmed that they are in fact not planning on launching Ripple.
Ripple XRP has been writing headlines across the internet for the last few weeks which naturally has created several rumors about the cryptocurrency. One of the most popular rumors was that Coinbase was planning to launch XRP on the GDAX exchange – something Coinbase neither confirmed nor denied until now.
At the beginning of this week, Ripple surged like never before and ended up dethroning Ethereum as the second largest cryptocurrency. The development led to an increased hype around Ripple and the rumors about Coinbase launching the cryptocurrency was everywhere.
Eventually, in order to calm the market and stop the rumors, Coinbase felt forced to confirm that they have no plans of adding any cryptocurrency to either GDAX or Coinbase. In a statement on their official blog Coinbase’s CEO Brian Armstrong said the following:
“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.”
Just hours after the statement was published Ripple’s market cap plummeted from 150 billion dollars to just above 120 billion. Additionally, XRP dropped from $3.85 per coin to $3.07. However, the currency has since regained some of its value.
Coinbase, Insider Trading, and Doubts About Ripple
We were actually quite surprised when we first heard the rumors about Coinbase launching Ripple since they started circulating just days after the company experienced major issues trying to launch Bitcoin Cash. At the time, Coinbase was accused of insider trading and were forced to initiate an internal investigation. Because of this, we found it difficult to understand why they would try to launch another asset in the middle of the turmoil.
Ripple has also received quite a lot of negative feedback from the cryptocurrency community saying that the majority of XRP is owned by a small group of developers and that Ripple is not a decentralized currency. In fact, after the cryptocurrency’s latest surge, the founder of Ripple Chris Larsen has become a billionaire who now ranks as the fifth wealthiest man on the planet. According to Forbes, Larsen owns a 17% stake in Ripple as well as XRP worth over $50 billion.
This naturally presents another reason why an influential company like Coinbase would want to stay away from the asset, at least for the time being. Just remember that this doesn’t mean that there aren’t any legit ways to buy Ripple.