Recent controversy in the cryptocurrency world has focused on allegations that Coinbase manipulated XRP prices. The allegations were filed by XRP community activist Stern Drew.
According to Drew's analysis, Coinbase's XRP Holdings fell from 26.0 million to 300 million by the end of August, from around 970 million in June. During the same period, the number of XRP wallets in exchange also decreased from 52 to 16.
Drew claimed that Coinbase sold XRPs during a period of low liquidity and distributed them to multiple wallets, consistent with XRP not breaking the $1.20 resistance level at the time. He also argues that these transactions are directed at over-the-counter (OTC) desks belonging to traditional financial institutions, suggesting that price control strategies may be designed to create opportunities for institutional purchases.
Currently there is no official evidence to support these claims. Coinbase has not commented on the issue and there are no investigations or sanctions in the research.
Experts believe that Coinbase's XRP Holdings decline is primarily due to liquidity management and portfolio adjustments. Similar trading patterns have also been observed at major exchanges and at OTC desks.
“We all know that Coinbase doesn't like XRP, but the price movement was similar when it was delisted from Coinbase in the past. Actual price movements are linked to overall market trends,” said XRP advocate Bill Morgan.
Ripple CTO David Schwartz rejected the allegation of market manipulation, claiming that XRP prices are determined by market uncertainty, regulatory issues and macroeconomic trends.
The claim that Coinbase is manipulating XRP prices is currently merely a speculation based on internal community analysis.
*This is not investment advice.
