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3 reasons why Coinbase is not adding XRP

3 reasons why Coinbase is not adding XRP

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Answer 3 reasons why Coinbase is not adding XRP

Ripple (XRP) is one of the most important cryptocurrencies nowadays, ranking third in terms of market size. It has long been a controversial currency in the cryptocurrency community.

As opponents of Ripple (XRP) call it “the digital currency of banks” and as a kind of sarcasm on the centralization of the project, we find that supporters focus on its practical role and its capabilities in solving a number of problems facing the encrypted bitcoin.

But despite all that, the most famous American cryptocurrency exchanges (Coinbase and Circle) ignored XRP and did not add it, which made some wonder about the reasons behind this decision.

controversial coin

Among the advocates of decentralization, hatred for XRP has become commonplace. This community believes that the project brings together all the problems of centralization and the current financial system, but only the name of the digital currency has been added to it.

Read:Circle is preparing to launch a stablecoin based on the euro and working on the Solana blockchain

The reason behind this is that the technology behind the Ripple program (XRP) contradicts the basic principles of decentralization such as: the central governance system, the number of coins before the mining stage, the huge number of coins allocated to the work team.

It seems that these reasons prevented XRP from being added to the major US platforms despite the physical incentives. As it was previously reported last April, that Ripple offered Coinbase a loan of more than $100 million in XRP coins in exchange for adding the coin to the platform, and this was not enough to convince the Coinbase team.

Although Coinbase has not released an official and explicit statement explaining the reasons for not adding XRP, they have published a “Digital Asset Framework” which outlines the requirements that the project must meet for each to be included on the platform, which are as follows:

decentralization

One of the basic principles mentioned by Coinbase is decentralization. This means that it must be public, decentralized and capable of consensus on the principle of trust.

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Despite the insistence of the XRP team that the system is completely decentralized, this matter is disputed by a large number within the cryptocurrency community because the company can control the XRP system on its own.

Many believe that centralization is the real reason behind not adding it to the Coinbase platform, especially that the platform is considering the inclusion of Stellar and its token (XLM), which was initially based on the encrypted base of the Ripple network, but has become more decentralized now.

Regulations and Regulations

In addition to the centralization obstacle, we find that XRP is involved in a series of lawsuits over whether XRP is classified as a security.

And if it is classified as a security, it is likely that the currency will become unattractive to trading platforms at the present time, as all securities are subject to stricter laws and regulations.

Read:Now you can use Bitcoin at one of the largest travel and tourism agencies in the world

There are currently alternatives

Ripple (XRP) does not face obstacles in its spread as it is traded on the largest cryptocurrency exchanges, as it was added to the Japanese DMM Group, which has a customer base that exceeds the number of Coinbase customers.

But the reason for the company’s interest in adding its currency to the Coinbase platform, as it represents the main gateway to enter Western money (the residents of Europe and North America), and the CEO of Ripple (XRP) believes that the Coinbase platform will be interested in the currency if we implement our business on a large scale globally.


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