Ripples Continuing Efforts to Buy Itself Onto a Major Exchange Prove to be Futile
By: Chris Douthit
Tags: Finance, Cryptocurrency, Blockchain, Bitcoin, Ripple

In recent times, investing in cryptocurrencies is a topic that continues makes headlines. This is not news to the people who invested early in Bitcoin, as these people have a reason to smile today. More people are now investing in other cryptocurrencies with the hope that the cost of the digital coins will continue to grow over a short period. One of the crypto coins that have been favored with this belief of imminent growth is XRP, which is a digital coin that’s operated by a startup known as Ripple and is deemed to be the third largest cryptocurrency in the United States after Bitcoin and Ethereum.

XRP fans harbor the belief that it can grow even larger than Bitcoin, but the cryptocurrency has failed to acquire a listing on popular exchanges like Coinbase and Gemini. Meanwhile, it has been reported that the failure to obtain a listing on one of these major exchanges cannot be attributed to lack of trying, as Ripple has offered to make payments to secure a spot on the top exchanges. However, it’s not clear if these details hold any truth, because both companies are yet to release any public statement in this regard.

The inability of the company to obtain a listing on the major exchanges has led many financial experts to conclude that the future of the virtual currency may be hanging on a thread. This is in addition to the recent announcement by the United State’s officials warning exchanges that are not licensed to avoid listing cryptocurrencies that are regarded as securities.

During the same period, XRP tokens suffered heavy losses after Coinbase publicly debunks rumors of an imminent listing. Other reports suggest that the executives of Ripple offered a cash payment of $1 million to Gemini to persuade the exchange to list XRP on its platform. Rumors also have it that the company resorted to strategies such as offering to cover cost and rebates to convince the exchange to list its token.

An unidentified person who was privy to a preliminary discussion between Ripple and Coinbase last year reportedly revealed that the former stated that it’s willing to lend XRP tokens worth a massive $100 million to the latter to kickstart the exchange of the tokens on the exchange platform. However, updates earlier this year revealed that both Coinbase and Gemini declined the offer from Ripple without stating their reasons publicly. Financial experts hold the opinion that it’s not unusual for a cryptocurrency company to pay for its token to be listed by an exchange. The procedure is estimated to cost about $3 million as revealed by an update from Autonomous Research.

Moreover, it‘s believed that if XRP is categorized as a security, then it will become even more difficult for the company to obtain a listing on any cryptocurrency exchange. This is because the digital coin will go from being classified as a cryptocurrency to a stock thereby requiring it to meet the conditions that regulate similar assets. The financial company reportedly intends to create a payments system for banks across the globe, and many individuals have used the coins as securities as well as an alternative way to move money across different continents without any difficulty.

A massive sum of money is transferred across the globe on a daily basis via numerous network of banks, thereby leading to a slow distribution of funds or even inflation. Since its inception, the San Francisco based company has taken active steps to change these by improving the cash circulatory system using what is referred to as an internet of value.

Although XRP has encountered some setbacks just like other tokens in the industry, it recorded a whopping 1,300 percent increase in value in 2017 thus leading to the financial success of many of its executives. It’s believed that banks are the primary investors in XRP. They reportedly use tokens to transfer cash from one place to another at a lesser cost. In contrast, banks have claimed that they are not interested in using XRP.

Reports have revealed that the past and current executives of seven banks across the globe stated that the chances of entrusting the assets of clients to a cryptocurrency are thin. It’s important to report that the executives who pleaded anonymity have previously partnered with the company. Even with the ups and downs encountered by the company, its investors are not backing out any time soon. Words on the street reveal that Ripple may be able to obtain a listing of its tokens in the United States very soon. The company’s official website stated that there are 100 billion tokens of XRP with Ripple holding up to $80 billion of the entire asset. The company also indicated that it had sold over $185 million XRP tokens since 2016.

The Chief Executive Officer of Ripple, Brad Garlinghouse stated that the tech company is currently working with over a hundred banks including Banco Santander SA and Standard Chartered Plc to change the way these institutions handle their client’s payments. It’s reported that United Kingdom division of Standard Chartered Plc is currently working on a mobile application that uses Ripple technology to transfer payments across the globe.

Cryptocurrency enthusiasts believe that now is the best time to invest in Ripple as more substantial profits could be recorded in the nearest future because of the low price of the token which falls below a dollar.

The company offers a better way for the financial institutions to adopt the use of cryptocurrencies with its swift transaction speed and more than one hundred have already embraced it. There is also a high possibility in the increase of the price of XRP as a token of the cryptocurrency cost about $0.006 at the beginning of last year, which is about 15,000% at the end of the same year.

The tech company could be the much-anticipated catalyst in making virtual coins more mainstream. It’s also important to focus on building awareness for the digital coin as well as making it available to interested buyers just like other cryptocurrencies that can be purchased in fiat. Garlinghouse also stated in another interview that Ripple has to walk hands in glove with regulators if it intends to progress and achieve its objective.

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