Obtaining a listing on these exchanges is widely regarded as a stamp of approval, and not being on them can hurt the credibility of a cryptocurrency severely.
The art of getting listed
Ripple has, however tried to get on both exchanges – and they’ve offered a large sum of money to be listed on them.
This is by no means an unusual practice – cryptocurrencies have been known to pay between $1-$3 million to be listed on the exchanges.
This practice is furthermore not limited to cryptocurrencies: companies pay between $42,000-155,000 per year just to be listed on Nasdaq’s stock echange.
Rumour has it that Gemini was offered as much as $1 million in a direct cash transfer to list XRP on the exchange.
Coinbase was offered a different, but similarly impressive deal. Ripple would lend the exchange XRP units for a value of a staggering $100 million if they would just list the cryptocurrency on their exchange.
And yet neither of the exchanges have listed XRP.
The power of speculation
The fact that both exchanges have declined these proposals is very interesting, especially considering that the value of XRP would undoubtedly rise with a listing on the exchanges.
As a matter of fact, just the pure speculation that XRP would land itself a listing on either of the exchanges has cause the cryptocurrency to rise in value.
Just between December 12017 and January 2018, the cryptocoin has become 14 times as valuable as it was before.
Of course, the potential benefit for Ripple is even bigger: cryptocurrencies have been known to up their value by 100x their pre-listing value.
To get an understanding of how important a listing is for a cryptocurrency, it is worth bearing in mind that when Bitcoin was listed, it tripled its value in just 24 hours.
Bloomberg asked both exchanges for a comment on why that would be, but Gemini flat out declined to comment, and Coinbase refused to give any specific details – they simply referred to their listing framework.
A potential explanation?
]It appears even more strange when you consider that XRP is listed on most of the major international cryptocurrency exchanges. Why would two of the biggest US exchanges to want to be part of it?
The simple explanation could be that XRP is one of the most centralised cryptocurrencies out there – half the XRP tokens are controlled by Ripple.
This means that the currency could be considered a security – which is something the US exchange watchdogs are on the lookout for.
What do you think the future has in store for Ripple and XRP? Do you think it will eventually be listed on Gemini and Coinbase? Why or why not? And what do you think will happen to the value of XRP if it does or does not?
Leave your comments below!