Coinbase and XRP Come Off Week of Controversies

Home » FinTech » Cryptocurrencies » Coinbase and XRP Come Off Week of Controversies

Coinbase and XRP Come Off Week of Controversies

In the week since the Coinbase Pro announced it was adding XRP to its platform, controversy has surrounded both the exchange and the asset in question. Between criticisms about one of Coinbase’s acquisitions to questions about what role Ripple played it the platform listing XRP, both companies have found themselves on the defensive.

Starting with Coinbase, their largest current controversy actually revolves around their acquisition of Neutrino earlier this year. As Gizmodo reports the purchase raised some eyebrows as several members of Neutrino’s senior team were also associated with Hacking Team — a group that is alleged to have sold its services to oppressive governments in the past. It’s also interesting to note that Hacking Group reportedly sold tools to the U.S. DEA and FBI as well.

In response to concerns, Coinbase said this week that those who previously worked for Hacking Team would be leaving the company. Coinbase co-founder and CEO Brian Armstrong wrote in a blog post, “[W]e had a gap in our diligence process. While we looked hard at the technology and security of the Neutrino product, we did not properly evaluate everything from the perspective of our mission and values as a crypto company.” He added, “We took some time to dig further into this over the past week, and together with the Neutrino team have come to an agreement: those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase.”

Meanwhile this week the team at Ripple has been answering to rumors that the company paid or compensated Coinbase to add XRP to the exchange. CoinTelegraph notes that, while Coinbase director of communications Elliott Suthers declined to comment publicly on the matter, Ripple’s head of markets Miguel Vias said, “Coinbase’s listing of XRP (also, not ‘our token’) was Coinbase’s independent decision – we did not give them anything to make it happen.” You’ll notice that Vias made a point of mention that XRP wasn’t the product of Ripple. However, that very topic has also been a source of controversy that relates to the debate of whether XRP is a security. To that point Binance CEO Changpeng Zhao actually defended XRP in a live stream this week, saying “I think people are aware that there is a lawsuit against XRP on whether they’re a security asset or not. Our judgment is they’re not, and until proven that they are, we listed them, and luckily we actually dragged other exchanges to list them. That’s a good thing.”

Surely none of these controversies have been great news for the world of cryptocurrency as it continues to fight for legitimacy in the public eye. That said it doesn’t seem as though either issue has really entered the mainstream this time around, as such ink is typically reserved for assets hacks and the like. Still here’s to hoping those involved will be able to learn lessons from these mini-scandals and keep moving the digital currency space forward.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

What is a 401(k) Loan and is it a Good Idea?

For many employees, their 401(k) plan is their main means of saving for retirement and it may also represent the bulk of their net worth. Given this reality, it's no wonder that some individuals might look at their retirement savings and wish that they could utilize some of those funds...

Sales of Existing Homes Fall to Near 10-Year Low

During these interesting times, are you in the market for a house? If not, you certainly aren't alone. As CNN Business reports (and according to data from the National Association of Realtors), sales of existing homes dropped by 17.8% in April compared to the previous month. Similarly sales were down...

FinTech Numerated Announces Automated PPP Loan Forgiveness

Among the many ways that the coronavirus pandemic has changed life in America and around the world is that it's made FinTech more relevant than ever before. From contactless payments becoming a growing preference to digital banking proving essential, these innovations have been thrust into the spotlight. Similarly, while select...