Uphold CEO Simon McLoughlin elaborates on why the XRP army continued supporting the platform after XRP started trading on rival exchanges.
In an interview with Uphold exchange CEO Simon McLoughlin, the discussion turned towards the recent re-listing of XRP on various exchanges.
Lewis Jackson, the interviewer, expressed that the return of XRP to top exchanges likely eased strains on Uphold’s trading system. While McLoughlin acknowledged the positive impact of the re-listings, he pointed out a fascinating observation.
Uphold CEO Simon McLoughlin explains why the #XRP community continues to stand by Uphold after the SEC ruling.
▪️ Uphold's loyalty to XRP
▪️ Trust & Transparency
▪️ 100% Reserved
▪️ Security? Watch the full interview with @cryptolewlew: https://t.co/xqFMVODT1B pic.twitter.com/YuCLyEPJi0
— Uphold (@UpholdInc) August 19, 2023
McLoughlin noted that when rival platforms like Coinbase began re-listing XRP, it was priced higher than on Uphold. Despite the favorable competitor offering, the CEO revealed that Uphold saw a consistent influx of net deposits.
The turnout was particularly contrary to Uphold’s initial expectation of outflows. They had projected that the XRP investors would move their XRP bags from Uphold to other XRP trading platforms.
…We saw net deposits into Uphold. We expected to see outflows, but actually, we consistently saw net inflows, which was pretty interesting, and I think it’s partly to do with the fact that for two years, we supported the XRP community when all of the other exchanges didn’t. And we feel very proud to have taken that risk.” McLoughlin said.
Why XRP Army Support Uphold
McLoughlin attributed the unexpected result to Uphold’s unique history of supporting the XRP community for the past two years. Uphold allowed the trading of XRP while other exchanges delisted the digital asset amid Ripple’s regulatory lawsuit.
The Uphold CEO expressed pride and a sense of vindication for taking the risk of not delisting XRP. Furthermore, McLoughlin ascribed the turnout to users’ trust in Uphold, especially regarding its security practices.
“I do think that in this climate, people put a huge premium on trust and security and transparency,” McLoughlin remarked.
Moreover, McLoughlin argued Uphold is the only platform that publishes its customers’ real-time assets and liabilities on a public website. According to him, the information about users’ assets under its watch has continuously updated itself every 30 seconds since 2014.
Also, he highlighted that RSM Robson Rhodes, a well-regarded audit firm in the US and UK, has vetted Uphold’s transparency practices.
Uphold’s Driving Principle
Meanwhile, McLoughlin delved into Uphold’s foundational ideals. According to him, it traced back to the aftermath of the 2008 financial crisis. McLoughlin highlighted that Uphold emerged as a response to the vague operating procedures of traditional banks.
In his words:
“[People] didn’t know what financial institutions were doing with customer money behind the scenes because banks are inherently opaque.”
Therefore, Uphold created a financial institution that never lends out customer funds and openly displays its assets and liabilities.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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