Miguel Vias, the head of XRP markets at Ripple, denied allegations of paying off Coinbase to list XRP on their cryptocurrency exchange.
The response followed a series of bribery accusations shot towards Coinbase after its sudden announcement of adding XRP trading pairs to its platform on Feb 26. In contrast, the US exchange had earlier remained cautious of the said listing. As many speculate, Coinbase’s careful approach was due to XRP’s controversial history with Ripple Labs, a San Francisco startup that owns 60% of XRP – a stock worth billions of dollars.
What also concerned the company was a pending $167.7 million class-action lawsuit against Ripple which would determine whether or not XRP is a security asset.
However, all the genuine concerns Coinbase had were washed aside almost too suddenly, at least according to Allistair Milne.
The CIO of Altana Digital Currency Fund reached Coinbase’s communications’ director, Elliott Suthers via an email with a set of interrogative questions. He asked Suthers whether or not Coinbase sought the permission of either the Securities and Exchange Commission (SEC) or Commodity and Futures Trading Commission (CFTC) before offering XRP to the public. Milne also asked whether there was a private deal between Coinbase and Ripple for listing XRP pairs.
According to a screenshot published February 26, Suthers told Milne that Coinbase was happy to discuss his questions “off the record.” Milne took the response as a piece of evidence proving that Ripple had bribed Coinbase.
“You god damn right they did,” Milne hashtagged.
— Alistair Milne (@alistairmilne) February 26, 2019
Vias: XRP Not Our Token
Miguel Vias contradicted Milne’s statement in a February 28 tweet. He clarified that Ripple didn’t pay Coinbase anything to make the XRP listing happen. Vias also claimed that XRP was not their token.
We’re happy to go on the record. Coinbase’s listing of XRP (also, not “our token”) was Coinbase’s independent decision – we did not give them anything to make it happen. https://t.co/xTVvACqsQa
— Miguel Vias ⚡ (@miguelvias) February 27, 2019
The “not our token” theory signified that Ripple, as a company, didn’t issue XRP tokens.
Ripple had faced a lot of flack for holding a majority of XRP stakes. In response, the company decided to lock their 55 billion XRP tokens away from themselves – in a cryptographic escrow account. The time-based smart contracts would release 1 billion XRP on the 1st of every month. At the end of each month, Ripple would place the remaining unused tokens into a new escrow account set to expire in another 55 months from creation.
Still, Ripple had a say when it came to distributing XRP tokens.
On October 13, 2017, Ripple launched a RippleNet accelerator program to increase the “XRP utility.” The company allocated a $300 million XRP fund from its escrow holdings and declared that it would reward those financial institutions with XRP that test RippleNet payment framework. As a result, Ripple was able to attract partnerships from mainstream financial firms.
“This rebate — available in XRP or USD — is designed to accelerate adoption and usage of Ripple solutions.” the post read.
Incentivization, or free distributions, became one of the significant tools for Ripple to boost XRP adoption. And a Bloomberg report published in April 2018 revealed the same.
The $100 Million Incentive?
Bloomberg reported that Ripple had suggested paying financial incentives to crypto exchanges Gemini and Coinbase for XRP listing. In Coinbase’s case, Ripple had allegedly offered to lend $100 million in XRP to start letting its users trade the token. The firm had reportedly made a similar offer to Gemini – albeit amounting to $1 million.
Milne reiterated his accusation with the Bloomberg article. He asked Vias whether Ripple and Coinbase exchanged any assets in over the past 12 months or more. Milne also found it hard to believe that Coinbase, a company embroiled in multi-lawsuit accusations of insider trading surrounding its Bitcoin Cash listing, didn’t take a single penny but yet listed XRP.
Has there been *any* transfer of assets between Ripple and Coinbase in the past year or so? Of any sort (loan, donation, deposit, etc.)?
Extremely hard to believe Ripple offered $100mil of assets and then Coinbase decided to receive 0 benefit https://t.co/O9KETqsQuS
— Alistair Milne (@alistairmilne) February 27, 2019
The Coinbase Nostalgia
On December 19, 2017, Coinbase had made a surprise announcement that it was adding Bitcoin Cash trading option to its platform. Earlier, the company had refused to list the said crypto asset, so the u-turn took the trading community by surprise. Indeed, the price of Bitcoin Cash surged on the news within minutes, reaching as high as $1,000. In response, Coinbase canceled and all the further BCH trades citing liquidity issues.
According to Jeffery Berk, the primary plaintiff in the lawsuit filed May 2018, insiders were able to flood GDAX – a crypto trading platform owned by Coinbase – with BCH orders soon after the news went public. Coinbase, based on an internal investigation’s outcome, claimed that no such Bitcoin Cash insider trading took place.
If both companies go on the record that there has been no transference of value in Coinbase's favour whatsoever (easy to do) I'll retract and apologise. So far, both are being careful with their choice of words.
— Alistair Milne (@alistairmilne) February 28, 2019
Ripple (XRP/USD) forecast and analysis on July 17, 2019
Cryptocurrency Ripple (XRP/USD) is trading at 0.3162. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Ripple. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator.
Ripple (XRP/USD) forecast and analysis on July 17, 2019
As part of the forecast Ripple course is expected to test the level of 0.3270. Where should we expect an attempt to continue the fall of XRP/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 0.2620. The conservative area for Ripple sales is located near the upper border of the Bollinger Bands indicator at 0.3450.
Cancellation of the option to continue the decline in the Ripple rate will be a breakdown of the upper border of the Bollinger Bands indicator bands. As well as the moving average with a period of 55 and the closing of quotations of the pair above the 0.3620 area. This will indicate a change in the current trend in favor of the bullish for XRP/USD. In case of a breakdown of the lower border of the Bollinger Bands indicator bands, one should expect an acceleration of the fall of the cryptocurrency.
Ripple (XRP/USD) forecast and analysis on July 17, 2019 implies a test level of 0.3270. Further, it is expected to continue falling to the area below the level of 0.2620. The conservative area for selling Ripple is located area of 0.3450. Canceling the option of falling cryptocurrency will be a breakdown of the level of 0.3620. In this case, we should expect continued growth.
Ripple price analysis: XRP/USD defends falling wedge support; breakout still lingers
- The bear pressure further pushed Ripple below $0.29 before forming lower support at $0.28.
- “I agree that crypto isn’t likely to replace fiat currencies,” Garlinghouse.
Ripple continued to press against key support areas yesterday. The downside momentum was augmented by the broad-based selling pressure in the market. As discussed yesterday, the upside was capped at $0.32 while XRP/USD sustained above $0.30. However, the bear pressure further pushed Ripple below $0.29 before forming lower support at $0.28.
The debate surrounding Facebook’s Libra project has seen the CEO of Ripple Brad Garlinghouse advise the crypto industry to work hand in hand with regulators to guarantee success. In a series of tweets, Garlinghouse said that it unlikely that crypto will take the place of fiat currencies in the financial economy.
“I agree that crypto isn’t likely to replace fiat currencies – I have been very vocal that crypto isn’t likely to disrupt the US dollar and other G20 currencies in my lifetime,” he wrote.
Meanwhile, XRP has recovered stepping above $0.3 as the bull’s push towards the falling wedge pattern breakout. Although movement north is still hampered by the selling pressure, XRP/USD has a positive technical picture as seen on the 2-h chart.
Also Read: Cryptocurrencies are not substitutes for fiat currencies – Brad Garlinghouse
The Relative Strength Index (RSI) is currently horizontal at 46 following a recovery from the levels at 30. At the same time, the Moving Average Convergence Divergence (MACD) is stuck in the negative side but moving sideways at -0.004 in addition to having an inclination to the upside.
BTC/USD 2-h chart source
Has #XRPArmy Turned Against Ripple? Not Really
XRP’s recent drop below the $0.30 level was a major test for Ripple’s Twitter army, but they won’t abjure their allegiance
Tiffany Hayden, one of the most vocal members of the XRP army, has been suspected of becoming a non-believer after questioning the strength of the Ripple network.
That conveniently coincided with the XRP price nose-diving below the $0.30 mark due to the continuous market sell-off.
Everyone who keeps tabs on crypto Twitter has hardly seen any negative comments about Ripple posted by Hayden. However, she recently assumed that the network wouldn’t last much longer if Ripple shuttered that night.
There were legitimate reasons to believe that this might be the case given the painful experience of Stellar, which is considered to be Ripple’s direct competitor.
However, despite these concerns, Hayden made it absolutely clear she hasn’t lost her faith in XRP, claiming that she would rather sell a kidney than her bags of Ripple’s native token.
She later clarified that the kidney wouldn’t be her own (hopefully, she was joking).
Notably, Ripple’s XRP turned out to be one of the best-performing currencies during the recent sell-off, clinging onto the $0.30 price tag.
Image by CoinMarketCap
Still, its underwhelming overall performance in 2019 made many XRP investors reconsider their loyalty.