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RE: Ripple CEO & Coinbase President On CNBC March 6th - New Partnership ?

in #cryptocurrency7 years ago

Firstly let me preface my comments by disclosing I am a XRP holder.

Ripple is much more than an exchange coin. They are a company assisting banks and financial institutions facilitating cross-border payments. This is a 20 trillion + market. Thus should they take even 1% of the market they will have significant success. Ripple are an actual company with 200 employees. Where some of the negativity surrounding ripple comes from is in 3 parts:

  1. They are somewhat 'centralized' as they control who validates their transactions and also hold around 50 billion XRP tokens. The counter argument for this is that they are planning to decentralize the control of validators and that their XRP holdings can be used for growing the adoption of XRP by incentivizing clients.

  2. Their primary market is banks and financial institutions. Bitcoin was born out of disdain for these institutions and some feel that Ripple is helping keep these institutions in power. The counter argument for this is that banks and financial institutions aren't going anywhere soon regardless of any ideals held by those against the current system.

  3. Not all of Ripple's clients use or will use XRP. Ripple's core product is called Xcurrent which is a bank to bank messaging system like Swift but much more efficient and cheaper. This product does not utilize XRP. As a consequence of this people believe there is little value in XRP as most clients don't use XRP. The counter argument to this is that Ripple's strategy is to first gain the trust of clients by introducing them to the Xcurrent product before proposing client's switch to Xrapid (the product that uses XRP) as it produces the most cost savings.

As for Coinbase, while they certainly have some serious issues that need addressing, they are the most important exchange for investors wishing to purchase cryptocurrency with FIAT. At present it is a little difficult for investors to purchase XRP with FIAT, instead they need to buy another cryptocurrency and then trade into XRP. Being listed on Coinbase will solve the headache some investors have been facing with regards to trying to purchase XRP.

Every coin that has listed on Coinbase has seen significant gains, a lot of Ripple's run to all-time high was based on speculation that Coinbase would be adding XRP to their platform.

I personally am taking this interview with a pinch of salt as I don't want to get too positive on such speculation. No doubt the question will be asked on the show and we will get a response of some nature. Should Coinbase adopt XRP we will likely see significant gains, should they not we will see a decline.

Disclaimer: This is not financial advice, just my personal opinion.