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Coinbase-Xapo FUD: Top Coinshares official clears ongoing allegations

Akash Anand



Coinshares official tries to clear up ongoing Coinbase-Xapo 'FUD'
Source: Pixabay

The news of Coinbase planning to acquire Xapo, a Bitcoin wallet and cold storage provider had stirred up the cryptocurrency market, with many speculating that the Brian Armstrong-led company was trying to acquire other assets without increasing their prices.

In a way to dissipate the FUD surrounding the planned acquisition, Meltem Demirors, the Chief Strategy Officer of Coinshares shared a Twitter thread detailing the effects of the buyout. Demirors’ first tweet read:

“the @xapo FUD is so silly

  1. the company itself is not being sold. only the *institutional* custody component.

  2. i assume xapo is going to keep the cash on its balance sheet, and continue operations

  3. xapo does not charge for custody. the acquirer will (likely) charge.”

The institutional wing of Xapo has been in Coinbase’s sights for some time now as the world’s largest cryptocurrency exchange in terms of users tried to grapple with integrating institutional funds and normal cryptocurrency assets. Meltem Demirors furthered her argument on the acquisition by tweeting:

“      4. if customers have to now pay, they will likely evaluate the dozen or more competitors

5.xapo may ask large custody clients to sign a 12 month agreement to stay, but difficult to implement

6.liability on institutional custody is *huge*”

Coinbase’s movement towards institutional custody was also evidenced by the company’s launch of Coinbase Custody. The service, although peppered with several critical comments, stood its ground in maintaining customer security as the number one priority. This was made clear again when Sam McIngvale, the Head of Product for Coinbase Custody, claimed that the organization was putting its own funds and not the customers’ funds at risk. He had stated:

“Now, your point about how do you actively participate, there’s bonds [security deposit] for these networks. The way we’re are getting around that is Coinbase custody is actually purchasing the bond on behalf of our clients.”

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XRP TipBot comes back online after a tiny downtime; Nothing to be worried about, says Wietse Wind




XRP TipBot goes online after a tiny downtime
Source: Unsplash

XRP TipBot’s website and the corresponding application suffered a downtime on June 23, 2019 for a few hours, during which the application wasn’t showing the balance of users. The website and the API for TipBot instead, displayed a “500 Internal Error.”

A Twitter user, @BlueNETGaming, tweeted Wietse Wind, inquiring the same. Wind confirmed that it was just an “infrastructure blip,” and that there was nothing to be worried about.

Wind tweeted,

XRP TipBot is probably the first and most widely accepted use-case of XRP. It leverages the transaction settling time of XRP Ledger to make tipping easy among peers on Twitter, Reddit, and other platforms, and this was the brainchild of developer Wietse Wind.

After TipBot, a lot of other cryptocurrencies have tried to mimic this idea of facilitating tipping; an example being Bitcoin’s, Tippin.Me which leveraged Lightning Network for tipping users. Although successful, it isn’t as popular as Wind’s TipBot.

The reason behind the same is that XRP Ledger allows transaction settlement in under 5 seconds, which makes tipping fast and efficient, unlike Bitcoin’s transactions which take a few minutes for transactions to be confirmed.

This is same reason why XRP is being used as a liquidity provider for cross-border payments in Ripple’s proprietary product, xRapid.

XRP community is a tightly-knit community with people who are very bullish about XRP’s success. There are equally talented developers in the community who are developing apps that help create more use-cases for XRP.

SchlaubiDev is one such developer known for developing plugins for Gmail and Microsoft Office, plugins that allow a user to send XRP over e-mails.

Ripple has identified Wind and his team’s talent and inducted them into Xpring, which finances them to help develop more community-based apps for increasing XRP use-cases.

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