By
Bhushan Akolkar
May 14th, 2024
Ripple is said to have made lucrative offers to the crypto exchanges which could have possibly ensured huge liquidity for the XRP tokens.
The San Fransico-based blockchain startup Ripple has earned a lot of reputation for itself for transforming the way traditional global transactions take place using the blockchain technology and thereby establishing a potential link between digital currencies and global banking institutions.
Using the revolutionary blockchain technology Ripple has demonstrated how effective funds transfer across the globe can take place instantly at a very low cost by challenging the traditional banking system. Many global banking institutions and other money transfer or payments companies have tied up with Ripple for its established technology.
However, in spite of being the third-largest cryptocurrency by market cap, Ripple still struggle to find its way and get registered on the top two crypto exchanges in the U.S. According to the latest report by Bloomberg, the blockchain technology company made a very hard-hitting attempt last year to get listed on Coinbase and Gemini exchange, and even considered the option of paying lucrative financial incentives to the two exchanges.
According to the people familiar with the matter who refused to get identified due to privacy reasons, Ripple executives had made an offer of $1 million to the Geminin exchange in return to getting the XRP tokens listed on their platform. When this did not work out, Ripple also tried to persuade them with other offers like paying out rebates and covering the related costs.
Also, during the negotiating talks with Coinbase this fall, Ripple offered to lend the largest U.S exchange with a whopping amount of $100 million in XRP token and allows its customers to trade in the cryptocurrency. Ripple said that Coinbase could later repay the amount either in U.S Dollars or in form of XRP tokens. The simple reason behind Ripple pushing so many efforts was that getting listed on these exchanges would mean a lot of liquidity for the XRP tokens in return. this would have further helped the cryptocurrency valuations surge to new peaks.
One of the major reasons for Ripple’s rise to fame as well as its price earlier this year was a rumor which said that Coinbase is likely to list XRP tokens on its exchange. However, the sad thing is that the blockchain startup still struggles to find luck in this matter.
One of the major reasons the two crypto exchange have been hesitant enough to list Ripple’s XRP tokens is the fact that the U.S regulatory watchdog, the Securities and Exchange Commission (SEC) has warned unlicensed exchanges to not list tokens that may deem as securities. The control of the XRP tokens by a single organization has sparked a discussion that it could possibly fall into this category.
While commenting on this report about Ripple’s proposals to the exchanges, company spokeswomen Emmalee Kremer said that the information looks to be inaccurate. She said: “Regardless, Ripple has always been transparent about our focus on building and growing a strong XRP ecosystem. We want XRP to be the most liquid digital asset possible to enable faster, cheaper global payments.”