‘Pay-to-Play’ or Business Deal? XRP Debate Revives Gatekeeping Claims

• The XRP community argues that Coinbase demanded millions to list XRP.
• Schwartz says claims of payments are exaggerated; listings involve complex business deals.
• XRP supporters claim exchange listings reflect gatekeeping over merit.

New controversy in the XRP community suggests that Coinbase may have demanded millions of dollars to list XRP, with CTO Emeritus at Ripple, David Schwartz, offering context to the narrative.

XRP community figure Pumpius cited past statements by Schwartz and framed the situation as a “pay-to-play” scheme. He questioned whether major exchanges gatekeep listings for financial gain.

Notably, the discussion dates back to 2023, when Schwartz published a series of posts addressing claims that Ripple paid exchanges to list XRP. 

At the time, Schwartz avoided confirming specific details but made it clear that the situation was not as simple as critics suggested. 

He explained that claims about Ripple paying millions were often exaggerated and ignored how exchanges and token issuers actually do business.

What has attracted most attention was a hypothetical example he shared. In it, an exchange refuses to list XRP and instead demands that Ripple pay millions.

Ripple first refuses, leading to a standoff, but later agrees to a deal. The payment isn’t to artificially boost XRP but to avoid harming its market access. Schwartz remarked:

“Had we not existed, the exchange would have listed XRP months ago. We paid money to not let our existence hurt the XRP ecosystem.”

Meanwhile, once listed, XRP quickly becomes a strong source of revenue for the exchange.

Business Reality or XRP Market Manipulation?

Pumpius and some XRP supporters interpret the scenario as evidence of exploitative practices by exchanges, arguing that it reflects a “gatekeeping” culture in crypto where listings may depend on financial negotiations rather than merit.

However, Schwartz’s framing pushes back against that conclusion. His explanation suggests that what may appear to be a listing fee could instead be part of a complex business arrangement.

Lingering Questions Around Exchange Power

The renewed debate highlights ongoing concerns about the influence centralized exchanges like Coinbase have over which assets gain exposure and liquidity.

It also raises questions about transparency in listing processes and whether the crypto industry’s ideals of openness and fairness are fully reflected in practice.

Importantly, Schwartz has not confirmed that the hypothetical scenario directly involved Coinbase. But the discussion has once again drawn attention to the behind-the-scenes negotiations.

Notably, after the SEC filed a lawsuit against Ripple in December 2020, Coinbase removed XRP from its platform. Following Ripple’s legal win in July 2023, the exchange restored XRP trading, where it remains listed today.

Related: Coinbase XRP Reduction Fuels Rumors, Lawyer Says Price Stable