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does my ripple wallet store my other coins also if i got them on gatehub


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i created a new ripple wallet on gatehub and i bought some xrp and some ethereum. when i take my ripple address and ripple secret key and plug it into another wallet like rippex or theworldexchange.net. i can see both my ethereum balance and my xrp balance. does that mean that in the case that gatehub shuts down i will be able to access both my ethereum and xrp or any other coins i have on gatehub on another website if i have my secret key? or can i just access my xrp.


Edited by fuzzymodo
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In the case of your XRP, then definitely yes, if Gatehub shuts down then your XRP will be accessible like you say from any other wallet.

Technically your ETH will be accessible also, BUT remember that they are not actual ETH, they are ETH IOUs. If you bought them using Gatehub then it's likely you bought "Gatehub Fifth" ETH IOUs (you can see this on your wallet page in Gatehub). Gatehub Fifth is Gatehub's cryptocurrency gateway. If Gatehub shuts down then it's likely that Gatehub Fifth will also shut down, which would make IOUs issued by them worthless. In that case, you could not send the ETH IOUs to a "real" ETH wallet because the gateway is gone. And no-one on the XRP Ledger would buy the IOUs off you for the same reason.

The same goes for any other currency or asset that you have stored in your wallet - if it's not XRP, then it's an IOU backed by whoever issued it, and by holding their IOUs you're exposed to the risk of them shutting down.

Holding IOUs makes me very uneasy because of the lack of regulation at the moment - my opinion is that Ripple is still too young for the IOU system to be reliable for long-term storage of significant amounts. Holding them short-term for trading is obviously useful, but until your funds stored in gateways are backed by some third-party (like stock brokers can be), then I find it all very risky.

Is anyone aware of any gateways that do have their IOUs secured by a third party yet?

Edited by at3n
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