In a recent interview, ripple CEO, Brad Garlinghouse was asked if he is concerned that XRP could be declared a security. To this, he jokingly answered that considering the influence that any news of XRP being listed on Coinbase elicits, XRP is probably more of a Coinbase security than a ripple one if indeed it is a security. This comes from the strong attachment that the XRP community has to Coinbase and the expectation of a bull rally in case it’s listed. But the attachment to Coinbase is not random. In the past, a listing on Coinbase was usually followed by a huge pump that led to sustained bull rallies.
However recent listings on Coinbase have not boosted prices significantly. If anything they have ended up being pump and dumps. Case in point is basic attention token (BAT). After a slight pump prior to the listing on Coinbase, Basic Attention Token (BAT) has dumped by a huge margin. Yesterday, BAT dumped by over 20%. Today, it is down by 10% and is collectively one of the biggest losers in the last 48-hours.
It goes to show Coinbase, and exchange listings in general no longer hold much sway over crypto prices. This is attributable to the fact that accessibility is no longer the issue when it comes to crypto demand. Today cryptos are accessible through multiple avenues. XRP, for instance, is listed as a base currency on several exchanges, which makes it even more accessible and liquid than most other cryptocurrencies. This means that it’s not lack of access that is holding down XRP, but rather a declined interest in the crypto market, after the sustained 2018 bear run.
For cryptos to grow, adoption will have to catch up to the technical developments and the increased accessibility. This is one area where XRP (XRP) is doing well, and could do even better next year and beyond. That’s because, XRP has been making major inroads in the finance industry, through it strategy of working with a banks. Since XRP went live, it has been adopted by a number of financial institutions. According to Brad Garlinghouse, at least a dozen banks will be using XRapid by next year. This is the adoption that will impact on the price of XRP. Exchange listings, whether coinbase or any other cannot sustain its value in the market the way adoption will do.
Regulatory clarity will also play a huge role in the growth of XRP. At the moment, XRP has a significant edge over other cryptocurrencies in terms of market adoption. The level of institutional ties it has developed make it a real threat to SWIFT, the decades-old cross-border payments.
The only thing holding it back is regulatory clarity from the SEC. The moment they come out clearly and declare that XRP is not a security, there will be no reason for banks to hold back on a technology that makes them more efficient in terms of speed and costs. XRP is a tool that can save banks the costs of holding large amounts of foreign reserves in Nostro Vostro accounts. It also saves small banks the cost of having to rely on the big ones in cross-border payments. That’s a use case that could easily push XRP (XRP) to a trillion dollar market cap.