Has Coinbase Withheld Action to Support Ripple XRP?

2018 was an exciting year for Ripple. The value of one XRP coin was $3, topping it second on the list of top digital currencies by market cap. The statistics were significant at the time, meaning it was only second to the world’s leading cryptocurrency- Bitcoin. When analysts and investors thought Ripple had a brighter future, the opposite happened. The current market value per coin is below $2.33, dropping the coin’s position down past Ethereum.

Why is the End Near for Ripple XRP?

These are hard times for XRP as the coin’s value dropped by 20%. The fourth-largest cryptocurrency is fighting for its life as it continues to fall freely from multiple delistings and suspensions. The event followed a lawsuit by the SEC alleging that Ripple marketed XRP illegally to retail investors. Tables turned for the company when Coinbase announced to stop exchanging XRP. As the world’s top cryptocurrency exchange platform, others would likely follow suit, leaving no future for XRP.

According to Coinbase, many factors are at stake now that there is bad blood between Ripple and the SEC. The exchange’s Chief Legal Advisor, Paul Grewal, emphasized the need to maintain good market metrics. Other minor platforms have pulled out already, making analysts and investors question the future of Ripple XRP.

Has Coinbase Withheld Action to Support Ripple XRP
Has Coinbase Withheld Action to Support Ripple XRP

However, Coinbase will continue to support XRP on its digital custody and wallet. Investors would still deposit XRP on their Coinbase wallets and withdraw after the trading suspension. It stands committed to providing trustworthy cryptocurrency services and customer access to multiple assets on the Coinbase Digital Asset Framework. The exchange’s mission is still to establish an accessible global financial system for customer assets.

Is CoinBase Partially Responsible for XRP’s Downfall?

While many exchanges delisted XRP, Coinbase suspended it. Its decision factored around the aggression of the SEC to file a lawsuit against Ripple. At first, a Coinbase spokesperson said the exchange was ‘considering’ its options when asked what it thought about supporting Ripple in light of the SEC allegations.

Financial analyst Frances Coppola publicly stated that exchanges engaging with XRP during the suit are against federal law. So, Coinbase, like other exchanges, was bound to take action. Users can buy ripple with PayPal using P2P Exchange though, which currently do support this type of trading. Despite claims that Coinbase has suspended all digital transactions with crypto, it promotes trading in Litecoin, Bitcoin, Bitcoin Cash, and Ethereum.

Business Considerations for CoinBase- Besides legal considerations, the company’s interests back up the decision to suspend XRP. Its Digital Asset Framework states assets should not be of illegal status in the company’s legal framework. Therefore, XRP’s suspension was paramount to maintain its reputation, although it meant a loss of significant revenue for CoinBase.

The Bottom Line- CoinBase has Had Major Wins than Ripple XRP

CoinBase has established itself well to impact digital currency prices with a large customer circle. As one of the largest platforms for trading Bitcoin Cash, investors can now transact easily. Ripple might have had significant gains separately without CoinBase’s influence, so it might not have played a big role in the exchange’s offerings.

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