When will XRP be back on Coinbase?

Ripple is a firm that intends to disrupt the cash transfer market by making it more affordable for banks to transmit money internationally. In 2013, the business created XRP as its digital currency.

XRP is the coin that powers the XRP Ledger, once known as Ripple, after the crypto payments startup formed by XRP’s inventors. The XRP Ledger is a blockchain network created to assist banks and other financial organizations move money quickly and without costs. The market capitalization of XRP is present at $19.6 billion.

Once a popular asset, XRP, the native crypto of the blockchain-based virtual payments system Ripple, has been embroiled in a series of scandals in recent years. The Securities and Exchange Commission charged Ripple Labs Inc. and its founders in 2020, saying that they deceived investors and benefited financially from unregistered securities.

According to CoinMarketCap, the token remains the seventh-largest crypto in the world, with a $20 billion market value, even though the total market capitalization of the crypto industry has declined from more than $2 trillion to around $850 billion in recent months.

Because of an SEC lawsuit, the price of Ripple has deviated from other digital currencies in recent weeks. According to the lawsuit, XRP is a security, not a currency, and hence should be licensed and supervised by the government. Ripple has categorically disputed the allegations, claiming that XRP is a cryptocurrency like Bitcoin and Ether.

The price of Ripple has dropped since the SEC announced the complaint. This is because most traders have no idea what will occur to the currency. In addition, numerous online brokers and exchange platforms have banned trading in the currency. One of these platforms is Coinbase.

Why delist XRP from the Coinbase platform?

Coinbase has removed several major cryptocurrencies from its wallet software, including Ripple’s XRP, the seventh biggest digital asset by market valuation. America’s largest exchange said that from December 5, it would no longer offer Bitcoin Cash, Ethereum Classic, Ripple (XRP), or Stellar on Coinbase Wallet.

Coinbase stated that the decision was made “due to low usage” of the platform’s assets. Coinbase Wallet is a self-custody smartphone app comparable to other software wallets like MetaMask, but with a broader range of crypto asset functionality. According to Coinbase’s statement made at the end of November 2022, customers will no longer be able to purchase, sell, send, or receive assets using this app beginning next year.

The statement mentions Coinbase’s software, Coinbase Wallet, rather than the exchange itself. The business previously banned XRP trading in January 2021 in reaction to the Securities and Exchange Commission’s legal action against Ripple, which is currently continuing. It’s unclear what caused its wallet app to stop supporting BCH, XLM, ETC.

Why was XRP initially suspended by Coinbase?

Coinbase Inc, a cryptocurrency exchange, said it would stop trading in the cryptocurrency XRP after US regulators charged connected blockchain startup Ripple with making unregistered security offering worth $1.3 billion last year.

Coinbase’s action came as the company was prepping for a stock market listing and had filed a secret application with the US Securities and Exchange Commission to go public. This would be the first major cryptocurrency exchange in the United States to go public. Coinbase stated that XRP trading had been limited and would be completely halted on January 19, 2020, at 10 a.m.

Will the Token prices be affected?

It is worth noting that, despite this huge move by one of the world’s top crypto exchanges, no negative influence on the values of the impacted coins has been observed. In fact, according to CoinMarketCap statistics, XRP increased by more than 4% on the announcement of the delisting.

Coinbase made no public comment about the delisting, which is unusual given that delisting the world’s seventh-largest cryptocurrency is a huge step. The announcement was made on Twitter after users spotted Coinbase Wallet’s new policy. One thing is certain: Coinbase has no concerns with these assets and has even backed XRP in its SEC lawsuit.

What does delisting imply for your investments?

Delisting can have major consequences since firm shares that may not be listed on popular marketplaces are more difficult for investors to research and purchase. This means that the company cannot issue additional shares to the market to fund its new business activities.

Importantly, the assets removed from the Coinbase Wallet will not be lost due to this action. According to a business statement, any unsupported assets that remain with Coinbase beyond the January timeframe will still be attached to each user’s address and accessible via the owner’s Coinbase Wallet recovery phrase.

“You will need to import your recovery phrase into another non-custodial wallet service that supports these networks in order to see or transfer these funds after January 2023,” Coinbase added. This implies that the current assets are fully safe even beyond January.

While the non-listed assets are secure, Collins cautioned that keeping them in the Coinbase wallet is not the safest option. That would be equivalent to storing cash in a vault in some place. You must remove them from Coinbase at a certain point to trade or sell them.

The good thing is that the coin is still quite popular in the cryptocurrency industry. There are numerous choices for storing and using it long-term, including moving it to the Coinbase exchange itself.

Can XRP be re-listed with Coinbase in the future?

After resolving the issue and meeting the listing conditions, the company can request that its shares be re-listed. Investors sometimes have mixed sentiments about re-listing a company, and it could only have little success throughout its second stint on the market.

What happens if XRP’s lawsuit is lost?

Ripple CEO Brad Garlinghouse stated that if the crypto business loses its legal battle with the SEC, it will relocate to another nation.

The lawsuit, anticipated to go until early next year, might have far-reaching consequences for the cryptocurrency business. The SEC, led by Chairman Gary Gensler, has argued that various cryptos should be subject to the same stringent reporting and registration requirements as securities. If XRP does not win the case, re-listing on Coinbase will not be possible. Therefore XRP investors should look for other platforms to trade the coin, but only if there will be platforms willing to list this coin.

Conclusion

Historically, the fact that coins and tokens are considered security has not aided their price movement. For the time being, the Ripple versus SEC lawsuit is producing hopeful indicators of a good outcome for Ripple, which would increase XRP price movement.

While current developments in the Ripple vs. SEC lawsuit imply that XRP is unlikely to be categorized as a security, if it is, acquiring XRP would be the same as purchasing a Ripple share.