Barely two weeks after the launch and inclusion of Ripple’s token on Coinbase Pro’s listing, there are already signs that the coin index might be taken down soon.
Long Battle Not Yet Won?
The battle for Ripple’s XRP listing on Coinbase Pro has caused debates and online wars for a long while, with crypto enthusiasts questioning whether XRP was not worth the attention that was being accorded to peers Bitcoin (BTC) and Ethereum (ETH). Following the Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) listing, the crypto community, wondered why Ripple’s XRP was late to the game.
Analysts and skeptics pointed to the class action lawsuit on Ripple as the sole reason for the delay, with uncertainty resting on the fate of XRP being classified as a security. However, according to Jake Chervinsky of Kobre and Kim law firm, Coinbase finally decided on betting on XRP to yield greater returns regardless of other factors that might materialize after.
“It’s tempting to speculate about the legal implications of Coinbase’s decision to list XRP,” he said, “but there are too many variables at play to draw any solid conclusions. The only reasonable inference is that Coinbase believes the benefits outweigh the costs (including legal risks).”
It turns out that Coinbase might have placed the wrong bet, with the Ripple Liquid Index (RLX) already showing loopholes and flaws within two weeks of its listing.
More Than What Meets the Eyes
After its listing on the 26th of February, Ripple’s XRP surged up by 10 percent within 24 hours, an expected short term reaction to any listing by a major exchange. The listing which went through intense consideration that exceeded a year has raised eyebrows however onto why Coinbase decided to list XRP now. This has caused ripples of rumors to circulate through Twitter and Reddit that Ripple had probably paid their way through the requirements delaying its listing.
Last year, when the RLX was still under consideration of being listed, Coinbase had released a set of rigid procedures and rules in the form of a Digital Asset Framework that must be met before a coin is considered for listing. One of the requirements read:
“The ownership stake retained by the team is a minority stake. There should be a lock-up period and reasonable vesting schedule to ensure the team is economically incentivized to improve the network into the future.”
However with the revelation that the Ripple Team controls 60 percent of Ripple’s stake in contrast to the minority stake required by the DAF, many have called Coinbase attention to the major flaw. If nothing is done soon regarding RLX’s listing, it just might reinforce beliefs that Ripple paid their way onto Coinbase Pro’s elite listing.