Over the years, the largest cryptocurrency exchange in the US Coinbase has always embarked on changes it feels could contribute to the advancement of its aim to remain relevant in a market with more than 200 cryptocurrency exchanges in the world according to Coinmarketcap.

One of the changes is the addition of XRP, the third largest cryptocurrency in terms of market capitalization. This has led to an outburst by its users that their account with the exchange should be deleted.

As of November 2017, Coinbase could boast over 13 million active users. However many have started a Twitter war against them with the hashtag #deletecoinbase. This is due to their belief that XRP did not satisfy the requirement for it’s listing in the exchange. They also beleive that the exchange is using its user base to satisfy its end purpose of making huge gains and that XRP has a lot of court cases to answer with respect to if it is a security or not since the US Securities and Exchange Commission has not arrived at a conclusion on the coin.

XRP did not satisfy the requirements for its listing in Coinbase

In 2018, Coinbase has said that they will not be listing XRP irrespective of the push by the Ripple team, the San Francisco based technology giant company that owns the native token XRP. XRP is used in processing transactions in its blockchain and also to facilitate payments between banks and financial institutions through its products XCurrent, Ripplenet, and the recent XRapid that was introduced in the last quarter of 2018.

This stand endeared Coinbase to much of its users since it suggested that they preferred credibility over profits. However, the users were surprised that the exchange did not give sufficient reasons to list the coin on February 25 2019.

The exchange could be using its user base to satisfy it’s end purpose of making huge gain

A lot of activities are revolving around the XRP market as they have over 200 financial institutions using their Ripplenet and XRapid products to facilitate transactions. This has attracted other exchanges in the market like Binance to introduce XRP trading pairs. This could add a lot to the revenue it generates through transactions fee.

The Ripple team had previously promised the Coinbase team that they would give them millions of dollar worth of XRP if they should list the coin, with no time given for the exchange to repay.

So, considering the Crypto winter of last year which saw XRP lose more than 80% of it’s value after attaining its highest price of $3.84 by mid Jan last year. Many of it’s users assume that the exchange was coerced into a deal that will be a win-win for the Coinbase and Ripple team respectively.

Court cases revolving round XRP by some of its investors

The Ripple team had always maintained that the coin is not a security token. They have also maintained that its blockchain is more decentralized than the Bitcoin and Ethereum blockchains.

However, Some of its early investors have a case against XRP parent company Ripple, and some of its management members like the founder, Chris Larson for selling a security token to them that was not regulated thereby exposing them to unnecessary loses due to the volatile nature of the crypto market.

The US Securities and Exchange Commissione(SEC) are yet to decide if the Coin is a security or not. Hence, Coinbase users are of the belief that the exchange should have waited for SEC decision, if favourable to the coin before listing it in the platform.

Get updated with the latest Ripple Price action in our latest market analysis.


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