Kraken Faces Criticism for the Naming Convention – Adds Margin Trading for XRP

A San Francisco based crypto exchange, Kraken, found in 2011 announced to the public in a blog post, stating that it is adding BCH and XRP margin trading to its platform. The news comes at a time where exchanges and many other platforms are adding XRP support. A week ago, Binance added XRP as a base currency. eToro also integrated XRP into their wallet.

XRP (XRP) Price Today – XRP / USD

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Backlash by the crypto community

It appears that Binance was spared the harsh criticisms that other exchanges have faced after they integrated XRP. Both Kraken and eToro face serious backlash by the XRP community in general. Most users took to Twitter to attack the exchange due to several reasons. eToro was attacked by users for requiring transfers to secure deposits in XRP on the platform. Also, they criticized the lack of clarification on this issue. Since then, the managing director of eToro UK, Mr Igbal Gandham responded to questions the community members raised. He said,

This is a risk management decision based on several factors including the fact that funds sent by wire are more secure and have a higher level of customer due diligence.

Also, when it comes to the launch of BCH and XRP Kraken margin trading, some weren’t happy with the naming convention. Now, the problem now lies in the fact that the exchange listed the asset as Ripple (XRP), rather than XRP (XRP).

One Twitter user asked,

“Why is it too much to ask that you list $XRP as XRP? Everybody is trying to be crystal clear here. Why aren’t you?

— Tiffany Hayden (@haydentiff)”

Kraken makes some clarifications about this complaint. They said that the exchange lists their currencies is by naming the protocol followed by the name of the digital asset. Kraken also claimed that the protocol is Ripple and the asset is XRP. So the naming convention is correct.

However, the community criticized the exchange on why XLM was listed as Lumen (XLM) rather than Stellar (XLM).

Twitter user, Man Got Crypto (@SacredToes) asked,

“Can you explain the use of Lumen: XLM on the platform then given it’s the native asset on the Stellar network?”

Ripple is independent of XRP

It is clear that the entire XRP community is resolute about differentiating XRP and Ripple. The issue now with the above naming convention is that it may confuse new users into believing that they are buying shares in Ripple, the company. Ripple is a privately held company and also has a stock of its own.

While Ripple is a financial technology company, XRP is a completely independent digital asset. If Ripple stops existing tomorrow, XRP will continue to function as long as its validators are still online.  Ripple controls roughly seven percent of the XRP network so its existence is not necessary for the functionality of XRP.

While it is true the success of XRP can benefit Ripple, the company mainly relies on its employees and board to make big things happen. The individual success of XRP hinges on the community members or anyone building on top of the XRP Ledger.”

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.


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