Coinbase had made a prior announcement that it would be adding Ripple XRP, the world’s third most valuable cryptocurrency to its platform and the token finally went live on February 26.
Although Ripple XRP token did surge by 10% shortly after making its way on to Coinbase Pro, it wasn’t long before XRP dropped down to its earlier price value following speculations about underhand dealings involving Ripple and Coinbase.
Rumours began circulating on the internet, after Alistair Milner tweeted an image containing emails shared by Coinbase’s director of communication Elliott Suthers, implicitly referring to a payoff made to Coinbase for listing XRP.
Based on a supposed allegation Bloomberg, claims have been made that Ripple XRP had earlier attempted to pay Gemini as well, in exchange for listing.
Miguel Vias, the head of XRP markets at Ripple in response to the tweet and fud articles published post-listing of XRP, tweeted-
“We are happy to go on a record. Coinbase’s listing of XRP (also not ‘our token’) was Coinbase’s independent decision. We did not give them anything to make that happen.”
Controversy surrounding Ripple XRP lisitng
According to CryptoDaily, the Ripple team holds about 60% of the overall supply of XRP tokens which is contentious as it violates the terms of Coinbase which says,
“The ownership stake retained by the team is a minority stake. There should be a lock-up period and a reasonable vesting schedule to ensure the team is economically incentivized to improve the network into the future.”
Ripple and Coinbase have equally received heat from within the crypto community, as critics claimed Ripple paid off Coinbase to list its digital token, while on the one hand Coinbase is said to have violated its own policy by registering a crypto firm that hold majority share raising questions about centralisation of XRP tokens.
Miguel Vias took to twitter saying the accusations were false, and the decision made by Coinbase was completely autonomous. Vias clarified that there was no direct link between the Ripple company and the XRP token since the issued token was created through an ‘open source’.
The director of regulatory relation at Ripple, Ryan Zagone explains:
“XRP is open source and it was not created by our company, so that existed as an open source technology”
He further elaborates on how it works.
“We do own a significant amount of XRP, it was gifted to us by the open source developers that created it. But there is no direct connection between Ripple the company and XRP.”
With a number of fud articles discrediting the much anticipated listing of XRP on Coinbase Pro, supporters of XRP and analysts say that the value of XRP token will rise in the long run, however the XRP token which technically isn’t a cryptocurrency may pose a challenge for existing cryptocurrencies, such as Bitcoin and Ethereum.
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