Ripple is currently experiencing a major problem. They are known for being the third-largest cryptocurrency in the world. Banks have also signed onto their very own network and they have purchased equity stakes in the business as well. They want to change how money is sent and rewired across the world, and this is all looking very positive. When it comes to obtaining a coveted listing for XRP however, Ripple just hasn’t been able to get the job done. It’s not that they haven’t tried, because last year the San Francisco-based company even suggested paying the venues with some kind of financial incentive. Coinbase and Gemini are involved and this is according to four different people who all have direct knowledge of the situation. Unfortunately, they have asked not to be named when discussing any private information.
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With all of the hype surrounding XRP and even Ripple, the absence on such markets is very eye-opening. Ripple have tried to dangle money in front of the exchanges but any future success really does rest on getting XRP listed as one of the top trade venues. One major problem with this is that US officials have been warned that any unlicensed exchanges that don’t list tokens could be deemed as being securities. XRP’s level of control as a single and stand-alone company could mean that it falls under that description.
Last year, a Ripple executive asked whether a $1 million cash payment could persuade Gemini, and they also tried to explore strategies such as rebates and any other related costs. During the preliminary talks with providers such as Coinbase, Ripple stated that they would even be willing to lend the exchange way more than $100 million XRP so that traders could then start to use the assets. This is according to someone who was at the discussion. Ripple have not yet put the proposal in writing but they did tell Coinbase that they would also pay back the loan in dollars or XRP. If the exchange had happened to choose the latter then they would have profited even more had they been let on the market.
Apparently both Gemini and even Coinbase declined to pursue the proposal even more. When provided with an outline of Ripple’s proposals, Emmalee Kremer who is the company spokesperson said that some of the information was in fact inaccurate. She refused to say which details were incorrect, but either way, Ripple has always been very transparent about their focus on building and even growing a very strong XRP ecosystem. It has also been said that a lot of people want XRP to be the most liquid digital asset to try and make global payments happen even faster.
Gemini who was actually co-founded by both Tyler Winklevoss and Cameron both refused to comment. Coinbase also stated that they would not comment on any specific assets, but they did say that the framework to the exchange listing plays a part. Of course, it’s important to know that it is not uncommon at all to pay for a listing on the cryptocurrency exchange. The cost can range from $1 million for a standard token to $3 million if you wanted to get quick liquidity.
A few things have really helped to propel the XRP price even more in the last few months. There has also been a lot of speculation that says the token is set to graduate to the United States exchange as well. This will mean that they are going to face much stricter rules in regards to the regulatory purview when compared to markets in other parts of the world.
A US listing would help to cement XRP and their standing with other cryptocurrencies such as Bitcoin. XRP is also a very valuable link in the world of banking. It also plays a major part in the world of cryptocurrency as well. This is especially the case when you consider the fact that it comes with all of the backing required from Silicon Valley. XRP really is designed to change the way that banks move their money across borders, meaning that the whole thing would be much faster and much easier. This would help market makers to buy and even sell XRP and the token to investors. This is all according to the website, but it does make sense. The coin doesn’t represent an ownership state in Ripple itself and the concern lies with the fact that such a close relationship will mean that XRP is still classed as being a security.
If it turns out that XRP is still classed as being a security then it would be moved and then subjected to the governing asset checks, the same way that stocks are. The exchanges that offer it would also have to adhere to these regulations.
Investors aren’t giving up, even though things are looking bleak. When you look at how fast Ripple are gaining new customers, it isn’t hard to see how fast it is gaining momentum. It shot up 14 times its own value between December and January and that was way before Coinbase dismissed any idea that they had offered XRP a place on the market. The second surge came on the 5th of March. If you have been following this story, you’ll see that CNBC’s very own Brad Garlinghouse and Asiff Hirji from Coinbase appeared on the same program. This happened the very next day after they were apparently going to make an announcement for a listing.
Of course, paying for a listing is legal and markets are known for charging these kinds of fees. If it were going to be listed as an unregistered security however, the exchanger and even the issuer could both face penalties, opening up a ton of risk. A listing on the exchange is a huge part of the process and it helps to stop unregistered, illegal and even unlawful securities from providing to those who are not allowed to buy.
Companies often have to pay for a listing on the US stock market but before they can do this, they will need to maintain a listing requirement. Nasdaq for example have the ability to charge a yearly fee and this can change from $155,000 to $42,000. This is in the rule book for the company and Gemini and Coinbase are working to try and limit the amount of cryptocurrencies that are able to trade on their network. Those who are customers through Gemini can only trade in Ether and Bitcoin. The Winklevoss brothers have stated that they want to expand to Bitcoin Cash and even Litecoin. Coinbase currently has Ether, Bitcoin Cash, Bitcoin and Litecoin. Neither have decided if they want to add more coins.