Ripple News Update
Ripple prices dropped nearly 11% overnight after investors saw their hopes of seeing XRP on Coinbase dashed by a sudden, unexpected tweet.
The original fervor began when Melissa Lee, host of CNBC’s Fast Money, tweeted out the schedule for Tuesday’s show. It showed that Ripple’s CEO Brad Garlinghouse was set to appear on the same program as Coinbase’s President Asiff Hirji. Believe it or not, this seemingly innocuous detail set off a firestorm on cryptocurrency forums and discussion boards.
Ripple prices surged more than 16% on these rumors.
If you’re wondering why one exchange is worth 16% in prices, you need to consider the state of crypto trading in the U.S.
XRP is only available on a handful of exchanges—like Kraken, Gatehub, and Bitstamp—which have awful trading platforms. They aren’t user-friendly at all. Coinbase, by contrast, is the smoothest and easiest to use, making it the most popular platform for U.S. investors.
However, Coinbase only allows USD trades to BTC, ETH, LTC, and BCH.
The idea is that making it possible to swap U.S. dollars for XRP on a reliable exchange would draw in investors who are currently sitting on the sidelines.
Investors were excited about this prospect, but then Coinbase unleashed a devastating tweet:
Our January 4th, 2018 statement continues to stand: 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. https://t.co/X04oN6BcGp
— Coinbase (@coinbase) March 5, 2018
As you can imagine, this announcement knocked the wind out of Ripple’s sails. The XRP to USD exchange rate fell 10.59% to $0.948449.
I’m confused about why Coinbase is holding out against Ripple. More than 20,000 investors have signed a petition asking for XRP functionality. Clearly, it is a popular idea that would give Coinbase some positive PR at a time when it’s besieged by negative stories about its excessive fees.
Nevertheless, these detours mean very little over the long haul.
We maintain our view of XRP prices for this year, keeping our $10.00 Ripple price prediction unchanged for 2018.