After more than a year of intense consideration, Ripple (XRP), the world’s third most valued cryptocurrency by market capitalized found its way to Coinbase Pro on the 26th of February following a recent announcement from Coinbase. Shortly after Ripple (XRP) went live on Coinbase, the token surged by 10%, which is highly expected as a short term rally usually precedes a token’s first arrival on an exchange.
Amidst the celebration and excitement from both investors, traders and the Ripple (XRP) team, it didn’t take long for the cryptocurrency community to analyze an obvious loophole that may consequently lead to the delisting of the XRP token.
Back in 2018, Coinbase had revealed a Digital Asset Framework containing the procedures any coin/token would follow to gain listing eligibility. In the words of Coinbase ;
“The ownership stake retained by the team is a minority stake. There should be a lock-up period and reasonable vesting schedule to ensure the team is economically incentivized to improve the network into the future.”
According to CryptoDaily, the Ripple team controls a good 60% of the entire supply of the XRP token and as stated above, the team is expected to control only a minor percentage of these stakes. The contraction becomes clear and more worrying to cryptocurrency traders especially when the factors hindering XRP’s listing on Coinbase delayed the process and to a large extent, influence the rate of adaptability.
In fact, it was speculated that Coinbase had intended to fully back out on its decision to list Ripple’s native token upon learning that the Security and Exchange Commission (SEC) might term Ripple a security. However, seeing that the token has stayed 8 days on the Coinbase exchange and the Ripple team is get to make any statement concerning any violation of the rule in relation to stake holdings, perhaps the Ripple team is indeed in possession of only a minor stake.
Meanwhile, this very inability for Coinbase to clarify this alleged violation further fuels the rumors that the Ripple team may have paid its way through. Although the Ripple team had clarified this statement, the public holds this issue of violation as one that the rumors may still be true.