Right when Bitcoin got off of the bumpy roller coaster ride, Ripple jumped on it. Ripple had really been messing around with investors and enthusiasts with its simultaneous lows and highs.
From the last week of December, the cryptocurrency showed great inclines in value and started the New Year at the same pace. XRP reached an all-time high in the first week of January, with its price climbing over $3. The cryptocurrency surpassed ethereum to become the second-largest cryptocurrency by market cap. And right when the investors and enthusiasts became sure that the cryptocurrency will continue its upward journey, it fell. XRP value dropped slightly above $2 and the cryptocurrency claimed the third spot again.
Is Coinbase responsible for this?
Coinbase is the largest cryptocurrency trading platform and has a huge influence on cryptocurrency values. Any coin when introduced on Coinbase doubles in value within hours.
Coinbase had been responsible for big moves in the cryptocurrency prices earlier too. It is also one of the reasons behind Ripple’s wild upswing and downfall.
From the very start
In 2015, when a single bitcoin was valued at US$218, and the cryptocurrency owned about 80 percent of the market, Coinbase’s CEO Brian Armstrong referred altcoins as a waste of time.
Ripple, Stellar, and Altcoins are all a distraction. Bitcoin is way too far ahead. We should be focused on bitcoin and sidechains
— Brian Armstrong (@brian_armstrong) 23 February 2015
However, things changed in the last four month of 2017. Although bitcoin soared dramatically, its market shares fell from 80 percent to 33 percent only. Many smaller and unnoticed digital currencies came to the front and contributed to the market share, thus stealing the spotlight from bitcoin.
As a significant amount of market shares was also owned by altcoins, it was very challenging for Armstrong to keep his words. It would’ve been really stupid of the exchange to unfollow the market and direct it towards others who followed it.
So for this reason, Armstrong changed his stance and released a statement on 15th December saying:
“Everything started here with Bitcoin about five-years ago, but it’s now turned out that there are dozens of these digital currencies. In fact, I think there are 50 to 100 now with a market cap over US$100 million. It’s almost becoming Stock Market 2.0 if you want to think of it that way. The ones that are the most exciting to us that we have on the platform today are Bitcoin, Ethereum and Litecoin, but there’s many more that are going to be added to the platform in 2018 and I think this is going to be a really exciting space for all kinds of institutional investors to make money.”
He clearly indicated the arrival of altcoins on Coinbase and not just one but “many more”. XRP was the most eligible coin to make its way on the exchange and therefore, the statement played a prominent role in its growth.
Bitcoin Cash Launch on Coinbase and its immediate termination
On 19th December, Bitcoin Cash was launched on Coinbase. Within minutes after its launch, Bitcoin Cash trading was disabled from the exchange following an insider trading investigation call.
The value of the coin surged up to three times and continued skyrocketing until Coinbase suspended all its operation and called for an insider trading investigation.
The incident clearly showed the influence, Coinbase had on the market and hinted the risks involved with disclosing too much information before time. Another thing that was proved that day was the ‘volatility of the market’.
With passing time, the cryptocurrency community fully believed in Ripple’s arrival on the Coinbase platform and Ripple’s value wildly inclined. As Coinbase had said that new cryptocurrencies would be introduced in 2018, Ripple grew dramatically between this time span i.e. from 29 December to January 4th.
As rumours regarding Ripple’s listing were very strong and Coinbase had learned its lesson from the BCH launch, the hype was killed by none other than Coinbase itself.
On January 5, Coinbase published a statement on Twitter saying that the site will not be adding new assets.
“We wanted to give our customers details about our process for adding new assets to our trading platform. Our mission is to be the most trusted and easy-to-use digital currency exchange. We believe sharing this process with our customers is an essential part of building that trust.”
“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.”
Coinbase left an impression on investors that Ripple may not be so important, thereby causing the cryptocurrency to smash back.
Although Coinbase said that it is not offering new assets soon, it doesn’t mean it wouldn’t launch new cryptocurrencies at all. According to Armstrong’s earlier statement, new altcoins will be introduced on the platform in 2018. The year hasn’t ended yet. And most importantly Coinbase itself had its hands tied up because of earlier insider trading accusations and the last thing the exchange would want will be repeating the same mistake.
Coinbase’s January 5 statement might be a clue that altcoins will be added to the platform but with a timely decline.
XRP will be added on Coinbase in future
Though Coinbase is not adding XRP for now, investors should not be disheartened, as the cryptocurrency has already proven itself and will surely be added to the platform in near future.
Their virtual currency has all the potential to be listed on the largest cryptocurrency exchange.
- XRP is gaining popularity and has achieved a high adoption rate.
- It’s one of the top three biggest cryptocurrencies by market cap.
- There is a well-run company behind it to manage its PR and applications.
- It has a mainstream application. Ripple powered international money transfer system is adopted by a number of high profile financial institutes and is soon to replace the current money transfer system.
- Much faster transaction speed and low charges as compared to bitcoin and ethereum.
XRP has everything that it takes to be on Coinbase and with increasing competition and (XRP’s) popularity; Coinbase wouldn’t keep it away for longer.