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Why did Coinbase go for Ethereum Classic (ETC) instead of Ripple (XRP)?

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The largest US-based crypto exchange, Coinbase, made an unexpected reveal yesterday, June 12, when it announced that it will list Ethereum Classic (ETH). This is a great news for this cryptocurrency, but many were left astonished that the exchange skipped over a dozen cryptos with larger volume and market value, especially Ripple (XRP).

Coinbase chooses Ethereum Classic

The big reveal by Coinbase, the largest crypto exchange of the United States, left crypto enthusiasts completely confused, and it revolves around the exchange’s decision to add Ethereum Classic (ETC) to its list of cryptos. Many expected that the exchange would add a larger crypto, like EOS or Ripple, which is why this decision is hard to understand.

ETC is currently the 18th most valued cryptocurrency as per CoinMarketCap, while Ripple (XRP) is at the third place. Because of this, it is easy to understand why the community is so confused. Coinbase’s general manager and vice president, Dan Romero, noticed the reaction of the Coinbase’s community and has said that ETC came before XRP because accepting it is in compliance with the current local regulations.

He also added that this is not the end and that the exchange will keep adding as many assets as it can, as long as it can be done in a secure manner, and be in compliance with the crypto laws.

Why ETC?

Ethereum Classic originally came to be as one of Ethereum’s hard forks. It was made by a group of developers who decided to fork Ethereum’s chain after it significant losses of DAO (Decentralized Autonomous Organization.) investors. In time, ETC’s development was shared between a few groups of developers, one of which was, and still is IOHK, the group that started Cardano (ADA).

ETC still shares a lot of Ethereum’s features. It is sustained by an open-source community, and it is completely decentralized. This is also one of the reasons why it came before cryptos like EOS and Ripple, which are company-owned cryptos.

Coinbase’s CEO, Brian Armstrong, commented on the exchange’s choice and said that this is only the start of the new project that will see many more cryptos added. The exchange, as well as Armstrong, seem to be pretty excited about this, but they will first support ERC-20 tokens, as well as those that came from Bitcoin forks, before moving on to the rest of the cryptos.

Why not Ripple?

As mentioned previously, one of the large reasons why Coinbase decided to pass on Ripple is the decision to first add ERC-20 coins and Bitcoin forks. However, there seems to be more to it than just that.

One of the biggest debates these days is whether Ripple is a cryptocurrency or a security. Ripple is trying to act like a crypto, but the problem lies in the fact that it is company-owned, or centralized. This is the opposite of what cryptocurrency is imagined to be, which is an online currency that doesn’t have a governing entity.

Despite this, Ripple is still a digital coin, and the arguments for both views on its nature just keep piling up. The answer whether Ripple is a security or not currently doesn’t exist, and until this matter is settled, Ripple will probably be left alone by Coinbase.

Still, Ripple’s development team has mentioned that XRP will join the decentralized cryptos in due time, which is something that it can look forward to. If and when it does, it is believed that many more exchanges would be willing to list it, which is expected to, in turn, increase its price.

As for ETC, its price already went up by 25% following the announcement that it will join Coinbase. However, in the last 24 hours, it dropped again by 14%, which puts its price at $13.52 at the time of writing.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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