Could Ripple be added to Coinbase anytime soon?
Ripple, the third-largest digital currency after Bitcoin and Ethereum, had an extremely dramatic end to 2017.
The price of XRP climbed massively in the last few days of the year.
As the value for the tokens rocketed to more than $3 each, it was catapulted past Ethereum to become the second-largest cryptocurrency by market cap.
In the first few days of 2018, this value has fallen by a significant margin, yet, Ripple is generating a great deal of excitement.
Many investors were counting on Ripple to soon be added to the world’s most popular exchange, Coinbase, which would have sent prices to the moon.
Perhaps that is why many investors found it odd when Coinbase announced in early January that it had “not made any decisions” to add any new coins to its service, including Ripple.
As time goes by, though, many investors believe there is still a chance Ripple could eventually end up on one of the favored digital currency exchange.
Is Ripple Not Being Added Ever, Or Just Not Now?
When Coinbase announced that it would not be adding any new digital currencies in January, the value of Ripple fell by about one-third in immediate response.
Still, though, the announcement must be considered carefully, as they didn’t say they were not adding it at all.
Was Coinbase indicating that XRP tokens would not be available for trade in the near future, but could be added at a later date?
According to Investopedia, Coinbase, like many cryptocurrency exchanges and even like many digital currencies themselves, has been overwhelmed by the new interest in digital currencies, particularly in the last few months.
In mid-December, Coinbase indicated a need for expanding its office space by more than six times in order to keep up with increased demand, according to Hacker Noon.
Perhaps the lack of infrastructure helped to explain why Coinbase added bitcoin cash to its limited offerings; the addition would help with liquidity and serve to pull back bitcoin’s early bull run.
Bitcoin Cash As a Model
It’s useful to spend a bit more time looking at bitcoin cash to get a sense of how ripple might eventually come to Coinbase.
Coinbase would not wish to alert investors of its plans to add bitcoin cash to the platform, as investors would then buy up as much cheap bitcoin cash as they could before the launch, in the hopes that it would gain upon being added to Coinbase.
The same situation would likely be true for ripple; investors holding ripple when it’s added to Coinbase would likely gain a good deal of money very quickly.
Coinbase also has to deal with the fact that, for the time being, it is one of the most popular exchanges for U.S. customers.
The cash flow problem, exacerbated by issues with transaction completion, does not reflect well on Coinbase from a publicity standpoint. If there’s a way that they can better control these issues when they roll out ripple trading, it’s a safe bet they will.