Following reports that popular US-based cryptocurrency exchanges Coinbase and Gemini turned down payments from Ripple to list the company’s XRP token, a top executive from the real-time gross settlement system, currency exchange, and remittance network has tried to set the record straight.
The third largest cryptocurrency by market capitalization, Ripple (XRP), is not a security — at least, not in the minds of its parent company.
In an interview with CNBC, Ripple’s chief market strategist, Cory Johnson, stated:
We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law.
Johnson’s statement follows reports from unidentified insiders that Ripple attempted to buy a spot on popular US-based cryptocurrency exchanges Gemini and Coinbase — either of which would’ve undoubtedly caused an increase in the token’s trading volume and valuation.
Those with knowledge of the situation claimed that a Ripple executive reportedly offered a $1 million cash payment to Gemini to list XRP, which preceded various other attempts to persuade the Winklevoss twins’ cryptocurrency exchange to list the third largest cryptocurrency by market capitalization — including offering to pay rebates and cover associated costs.
Insiders also claimed that Ripple offered to lend Coinbase more than $100 million worth of XRP, in addition to offering to let the popular San Francisco-based exchange pay back the loan in either XRP or USD — potentially allowing Coinbase to reap massive profits following the appreciation of XRP’s value.
Both Gemini and Coinbase allegedly turned down the offers due to concerns over the U.S. Securities and Exchange Commission’s potential classification of XRP as a security.
Ripple didn’t exactly deny the claims, though the company does firmly deny that talks over XRP’s potential regulation as a security ever took place. Says Johnson:
Coinbase never ever raised the issue of whether or not XRP is a security in our discussions about listing XRP. We’re 100 percent clear, it’s not a security. We don’t meet the standards.
A spokesperson for Coinbase confirms Johnson’s claim that discussions over regulation never took place. Rather, the conversation centered mostly on the exchange’s criteria to add a cryptocurrency to its exchange.