eToro via a blog post on December 13th announced that it would implement XRP support to its user wallets as from December 25. eToro announced on Christmas day that their wallet supports XRP. However, because of a few restrictions within the wallet, the XRP community has criticized the platform via Twitter.
XRP (XRP) Price Today – XRP / USD
There Will be no Fees Charged for Wallet Creation and Coin Transfer for Now
After announcing the launch on Christmas day, eToro revealed that there would be no charges for XRP wallet creation and coin transfer for a limited period. eToro is not comparable to the traditional digital currency exchange. Rather it comprises of two services including a crypto wallet and a regulated brokerage service. To further understand how the exchange operates, it must be stated that users won’t be able to withdraw their XRP holdings directly from the wallet at this point in time because the addition of more features to the integration is still in progress.
Before Withdrawing XRP Holdings Users Must Fund Their Wallet With the Equivalent Transfer Sum
When eToro was asked to provide an ETA regarding when all the features will be in full swing, company representative Igbal Gandham said:
“Regarding this issue, you can expect it to be fully ready in the next few weeks, as part of our gradual rollout we will broaden the new product by offering more features to our customers. “
The oToro executive said if users want to withdraw their XRP holdings from their account, they will need to fund it first with the equivalent amount of money via wire transfer. You cannot just withdraw your XRP holdings from your account. When asked about this feature, eToro explains via a blog post that the concept behind this feature is as a result of risk management. They said funds sent via wire transfer to user wallets is a more secure option.
XRP Community Claims Wire Transfer Feature Creates Confusion
While the goal behind the implementation of wire deposits makes sense for the crypto exchange, the community believes that it creates confusion among users. According to one user who allegedly bought $9000 worth of XRP from eToro, he only managed to withdraw $1500 of the total sum because he bought the tokens with a credit card instead of via wire transfer. Gandham claims that eToro has offered a workaround for users facing this situation. The solution here is to switch their method of deposit and withdraw the initial amount.
There are three primary issues that the XRP community has with eToro’s new technology. The first is about the wire transfer requirement, while the other two issues relate to the 133 XRP minimum deposit requirement and the disclosure of eToro’s cold XRP wallet address. Because eToro advertises itself as an exchange that holds assets for people, it is natural that traders will want to have knowledge of their cold wallet addresses for the XRP token. That way the crypto traders can have the type of transparency they want and be certain that their coins are actually held by the exchange. Regarding the issue of minimum deposit, eToro clarifies it via their blog post.
The company said that the requirement for XRP account creation and facilitating a multisig address is just 45 XRP.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.