Coinbase has continually been adding new listings to their platform, aiming to provide a welcoming atmosphere for consumers that want to trade a wide variety of tokens. In a new Medium blog post on Monday, Coinbase Pro announced that the latest addition to their platform is XRP, the cryptocurrency developed by Ripple.
When XRP?? Now! XRP/USD, XRP/EUR, and XRP/BTC order books will soon enter transfer-only mode, accepting inbound transfers of XRP in supported regions. Orders cannot be placed or filled. Order books will be in transfer-only mode for a minimum of 12 hours. https://t.co/MWUtUm4wRh
— Coinbase Pro (@CoinbasePro) February 25, 2019
The blog stated: “After 10 am on February 25, 2019, we will begin accepting inbound transfers of XRP to Coinbase Pro. We will accept deposits for a minimum of 12 hours prior to enabling full trading. Please note that inbound transfers require the specification of an XRP destination tag.”
While these transactions will be available for users within the United States, regulations in New York prevent Coinbase Pro from offering the same services to those investors. Other countries included with this new listing are the “supported European Union member nations,” UK, Canada, Singapore, and Australia, though others may soon be added.
Describing the addition, the Coinbase blog says,
“The [XRP] ledger is powered by a network of peer-to-peer servers. All accounts on this network can send or receive XRP to/from each other, while XRP can be used to send underlying fiat currencies between two parties. In this way, XRP can function as a bridge currency in transactions involving different currencies such as US dollars, Japanese yen, Euros, Francs, and others in use on the XRP network.”
Coinbase always releases the new listing in four stages, considering that there needs to be a sufficient supply of XRP on the platform to actually begin the trading process. The four stages include transfer only, post only, limit only, and full trading. The blog elaborates on each of these steps, explaining the duration that consumers can expect to be subjected to them.
- Transfer only: “Starting after 10 am PT on Feb. 25, customers will be able to transfer XRP into their Coinbase Pro account. Customers will not yet be able to place orders and no orders will be filled on these order books. Order books will be in a transfer-only mode for at least 12 hours.”
- Post only: “In the second stage, customers can post limit orders but there will be no matches (completed orders). Order books will be in a post-only mode for a minimum of one minute.”
- Limit only: “In the third stage, limit orders will start matching but customers are unable to submit market orders. Order books will be in a limit-only mode for a minimum of ten minutes.”
- Full trading: “[F]ull trading services will be available, including limit, market, and stop orders.”
The addition of XRP as an available listing brings the total amount of tokens to 17. However, there has been some controversy around the XRP token, saying that it should be considered unregulated security and that it does not fall under the typical use cases of a crypto asset. However, the CEO of Ripple has adamantly denied that it is a security at all and has even said that their classification outside of a security has been verified by Mary Jo White, the former chairwoman of the Securities and Exchange Commission.
As most people in the crypto industry have learned, the listing of any new cryptocurrency on the Coinbase platform comes with a certain effect. No sooner than the announcement of listing is made public, the token quickly jumps in price as consumers clamor to gain a piece of the token. These purchases push up the value of the coin quickly, and that is exactly what is happening with XRP right now.
According to the recent data collected from CoinMarketCap at 11:40 am MST, the XRP token is worth $0.334870, jumping by 10.39% in the last 24 hours. If the Coinbase effect is true to its nature, then the price will continue to rise throughout the day.