Allegations of Coinbase Manipulating XRP Prices
A recent issue within the cryptocurrency community has focused on accusations that Coinbase manipulated XRP prices. These claims were introduced by XRP community activist Stern Drew, who utilized the on-chain analysis tool XRPScan.
Drew’s analysis indicates that Coinbase’s XRP reserves decreased from approximately 970 million in June to between 260 and 300 million by the end of August. Additionally, during this timeframe, the number of XRP wallets held by the exchange dropped from 52 to 16.
According to Drew, Coinbase sold XRP during times of low liquidity, redistributing it across various wallets. This coincided with XRP’s inability to surpass the $1.20 resistance level during that period. He further alleged that these transactions were aimed at over-the-counter (OTC) desks linked to traditional financial institutions, implying that the strategy may have been intended to set the stage for institutional purchases.
At present, there is no official evidence to back these accusations. Coinbase has not provided any comments on the situation, and there are no current investigations or penalties being pursued.
Experts suggest that the reduction in Coinbase’s XRP holdings is primarily due to liquidity management and adjustments within its portfolio. Additionally, similar trading behaviors are being noted across major exchanges and OTC desks.
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“We all know Coinbase doesn’t like XRP, but the price movements were similar when it was delisted from Coinbase in the past. The actual price movements are tied to overall market trends,” remarked XRP advocate Bill Morgan.
Ripple CTO David Schwartz has also dismissed the claims of market manipulation, stating that the XRP price is influenced by market uncertainties, regulatory factors, and macroeconomic conditions.
Currently, allegations of Coinbase manipulating XRP prices remain speculation fueled by internal community analysis.
This is not investment advice!
