CoinBase rumours see Ripple’s price soar… only to splash back down
Following a significant buy in we’ve seen Ripple’s price soar, with rumours circulating that the popular exchange Coinbase may add it to its roster of offerings, in addition to Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
The surge represents the volatility of the current market, with unsubstantiated rumours fuelling a rise of 15%. XRP, the digital token offered by Ripple, is the third-largest token – only behind Bitcoin and Ethereum with a market cap of more than $41 billion.
But it’s not the easiest to buy – Ripple’s website lists all of the exchanges where XRP is available for purchase, including Bitstamp, Kraken, and Gatehub. So the promise of Coinbase support – meaning buyers could invest at the tap of button on their smartphone – is an exciting prospect.
“I’ve seen rumors spreading around Coinbase additions and Japanese banking partnerships and [Ripple CEO] Brad Garlinghouse’s upcoming appearance on Fast Money,” said Alex Sunnarborg, founding partner at cryptofund Tetras Capital. “Larger buys in advance of expected news in these markets are then compounded by retail investors buying out of FOMO and trying to chase gains,” he added, via CNBC.
But since then, CoinBase has thrown some cold water over those rumours in a twitter post linking to their blog, causing the spike to simmer down into something representing a bump. “Our mission is to be the most trusted and easy-to-use digital currency exchange. We believe sharing this process with our customers is an essential part of building that trust,” read the post.
“Coinbase will announce the addition of new assets only via our blog post or other official channels,” it continued. “As of the date of this statement, we have made no decision to add additional assets to either GDAX or Coinbase. Any statement to the contrary is untrue and not authorized by the company.”
Since we saw Ripple’s price soar yesterday, the price of XRP has crashed back down below $1.00, trading at 0.9500 at the time of writing.
With Ripple getting so much face time with the press over the past few days, it’s thrown up questions among traditionally Bitcoin-loyal buyers, including “what actually is XRP?!” popping up on Twitter. Every cryptocurrency has something of a USP and many have completely different functions from one another. Ripple’s XRP falls into the latter category with it’s main selling point being its liquidity (pun intended). The foundations of XRP are for it to be used less as a currency and more as a payment system for fiat currency. You can see why there’s some confusion.
Cryptocurrency purists are often critical of Ripple for precisely the reason it’s so successful; that its reason for being is to provide a platform for banks and other large financial institutions to make digital payments easily and quickly without the lag of the Bitcoins of the world. Pandering to banks is not what crypto is all about.
A great conversation was had on Twitter about this, vote first and then read the thread:
Can someone in the know please help me out here;
Is XRP a;
— Ran NeuNer (@cryptomanran) 6 March 2018