can't buy xrp on coinbase

Due to regulatory risk and a lawsuit filed by the SEC, Coinbase delisted XRP in 2020, but users can still trade XRP on other exchanges like Binance, Huobi, and Kraken.

Nov 06, 2024 at 11:56 pm

Why Can't I Buy XRP on Coinbase Anymore?

Background:

Coinbase is one of the largest and most popular cryptocurrency exchanges in the world, offering a wide range of cryptocurrencies to its users. However, in 2020, Coinbase delisted XRP, the native cryptocurrency of the Ripple network.

Reasons for Delisting XRP:

1. Lawsuit by the SEC: In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, the company behind XRP. The SEC alleged that Ripple had raised over $1.3 billion through the sale of XRP in an unregistered securities offering.
2. Concerns about XRP's Classification: The SEC's lawsuit raised concerns about the classification of XRP as a security. If XRP were classified as a security, it would be subject to additional regulations and might require companies like Coinbase to register with the SEC.
3. Uncertainty and Regulatory Risk: The ongoing legal battle between the SEC and Ripple created uncertainty and regulatory risk for Coinbase. The exchange decided to delist XRP to protect its users and shareholders from these risks.

Alternatives to Buying XRP:

While Coinbase no longer allows users to buy XRP, there are other exchanges and platforms where XRP trading is still possible. Some popular options include:

1. Binance
2. FTX (not available due to bankruptcy)
3. Huobi
4. Crypto.com
5. Kraken

Note: The availability of XRP trading on these exchanges may vary depending on the user's location and other factors. It is always recommended to research and compare exchanges before selecting one for trading.

Impact on XRP Price:

The delisting of XRP from Coinbase had a significant impact on its price. XRP's value dropped by over 60% in the days following the announcement. However, the price has since recovered somewhat and remains one of the top cryptocurrencies by market capitalization.

Conclusion:

Coinbase delisted XRP in 2020 due to concerns related to the SEC lawsuit and regulatory risk. While Coinbase no longer offers XRP trading, other exchanges still provide access to the cryptocurrency. The impact of the delisting on XRP's price was significant but has since diminished as the market has evolved.