Trending: ‘Coinbase is Coordinatingly Manipulating XRP’ – Pundit Explains How

• Coinbase’s dramatic XRP selloff sparks suspicions of coordinated market manipulation.
• Expert uncovers patterns in Coinbase’s XRP moves, questioning market integrity.
• Institutional interests and timing raise concerns about Coinbase’s XRP strategy.

A prominent crypto expert, Stern Drew, recently raised concerns about Coinbase’s actions regarding XRP, accusing the exchange of orchestrating a coordinated manipulation of the cryptocurrency’s price.

According to the expert, Coinbase’s drastic reduction of its XRP holdings — from 780 million to just 199 million — within a few weeks has raised alarms in the crypto community. The 69% cut in XRP holdings is seen as more than a regular trade, suggesting that Coinbase’s actions are part of a strategic effort to suppress the cryptocurrency’s value.

Also Read: Ripple Expands Custody Service to Spain With New BBVA Partnership

Decoding Coinbase’s XRP Movements

Drew highlights the suspicious scale of Coinbase’s XRP selloff, which amounted to a loss of 581 million XRP, valued at around $300 million. Much of these outflows were channeled by the over-the-counter (OTC) desks connecting to New York-based institutions, further casting doubt on the integrity of the transactions.

The timing of these outflows is also alarming, given that they coincide with the downward movements of the prices of XRP. This suggests that Coinbase is strategically seeking opportunities to implement large-scale sales at its weak points.

Also, more than 70% of these sales were made during low-liquidity hours, which generally fell between 2 AM and 5 AM UTC. This is at a time when market activity is at its lowest, indicating an effort to press down the price of XRP by introducing additional volatility.

Coinbase also used different wallets with different exchanges, which spread the sales and concealed the magnitude of the XRP outflows. According to the expert, this is a well-planned method of restricting the asset’s price potential and averting rallies.

The Expert’s Theory: Why Coinbase Might Be Manipulating XRP

Drew proposes several theories to explain why Coinbase may be manipulating XRP’s price. One potential reason lies in Coinbase’s relationship with the Ethereum ecosystem, especially its ties to ConsenSys and the Ethereum Foundation. The analyst postulates that Coinbase could be attempting to secure the supremacy of Ethereum by such actions as maintaining the price of XRP at a low level.

Another theory is that institutional investors are interested. By selling XRP at a cheaper price, Coinbase may be making the asset more utilitarian to high-volume investors, who would enjoy the asset at a discounted price. This would probably harm retail investors, who could be left holding devalued XRP.

How Coinbase’s Actions Could Affect the Market

If Drew’s claims are correct, Coinbase’s actions could have far-reaching implications for the crypto market. XRP has a high chance of disrupting the conventional banking system and is, therefore, a serious threat to established organizations involved in the financial sector.

The analyst notes that Coinbase may be assisting the traditional participants and hindering the expansion of Ripple and XRP. Moreover, as XRP is cascading down to institutions, such as BlackRock, the analyst believes that institutional investors are setting themselves up to see a recovery in the future, so that the moves made by Coinbase can be more than simply short-term price inflation.

Also Read: Bitcoin, Ethereum, XRP Surge as Top Coins See Massive Gains in Just 24 Hours

The post Trending: ‘Coinbase is Coordinatingly Manipulating XRP’ – Pundit Explains How appeared first on 36Crypto.