Coinbase has recently liberalized its listing policy. Anyone can suggest the cryptocurrencies which should be listed on Coinbase. Coinbase will then conduct its own due diligence in order to list these cryptocurrencies. Earlier, only the Coinbase team decided which cryptocurrencies and Altcoins will be listed on the exchange. However, all of that has changed.
Is the pending court case against Ripple (XRP) hindering its listing on Coinbase?
Ever since liberalizing the listing policy, Coinbase has added quite a few cryptocurrencies and Altcoins to its platform. Also, it is made pretty clear that just like a stock-market; it plans on providing a wide variety of choices to its members. They can buy and sell a wide variety of cryptocurrencies and Altcoins eventually. This is the reason why it plans on expanding the number of cryptocurrencies and Altcoins which are on offer.
However, this does not match with the decision of not yet listing Ripple (XRP). Ripple (XRP) is the 2nd largest cryptocurrency in the world when it comes to market cap. It has overtaken Ethereum (ETH). It has remained in the 2nd position for more than one month now. That is why; Ripple (XRP) is a cryptocurrency which can certainly not be ignored. This however has not prompted Coinbase to list Ripple (XRP) on its exchange.
Many Coinbase members as well as general cryptocurrency community members are puzzled by this behavior. The likely explanation is that the lawsuit which is currently in progress against Ripple (XRP) might be the reason why it has not been listed on Coinbase. The exchange would like to offer cryptocurrencies and Altcoins which are completely legal.
Coinbase in the past has also clearly stated that it plans on listing the legally compliant cryptocurrencies and Altcoins. This might be an indication as to why it is not listing Ripple (XRP). The lawsuit has to do with the decentralization of Ripple (XRP). There are many investors who have filed a lawsuit which states that Ripple is actually a security, disguised as a token or a cryptocurrency. This is because Ripple labs as a company, holds a large amount of influence over ripple.
Another factor in the lawsuit is that investors have stated that Ripple make them believe that the developments in the company will directly reflect in the price of the XRP token. This is same as a security. That is why; this lawsuit holds a lot of importance not just for the XRP token investors but also for the cryptocurrency community as a whole. It seems like this is exactly what is putting the Coinbase listing of Ripple (XRP) on hold. Up until now, Coinbase hasn’t released any official statement as to why it is not planning on listing Ripple (XRP).