Following Coinbase’s decision to list XRP – the cryptocurrency commonly associated with Ripple – many analysts and investors alike questioned whether or not there was an element of insider trading associated with the listing. The concerns come after the exchange faced similar criticism back in late-2017, when investors accused the exchange’s employees of profiting off of the listing of Bitcoin Cash onto the platform.
Now, one analyst claims that XRP’s daily chart may point to the fact that it is a highly manipulated market, which he believes may end badly for investors in the cryptocurrency.
Ripple Separates Themselves from Coinbase Listing
It has long been known that Ripple has tried on multiple occasions to get XRP listed on Coinbase, as the additional trading volume incurred from a listing on the exchange would undoubtedly make XRP significantly more liquid.
A listing on Coinbase would also decrease the chances of manipulation, as it is more difficult to manipulate cryptocurrencies with higher average trading volume than it is to manipulate those with low average trading volumes.
A Bloomberg report from April of last year claimed that Ripple was offering large financial incentives to exchanges that would list XRP, with Coinbase being one such exchange that was offered incentives in exchange for listing XRP.
According to the report, Ripple told Coinbase that it would loan the exchange more than $100 million worth of XRP in order to allow users to instantly trade the asset.
Despite this offer, Coinbase declined to pursue it, and has now apparently listed the cryptocurrency on their own accord.
In a recent tweet from Miguel Vias, the head XRP markets at Ripple, he spoke on behalf of the company, claiming that Coinbase’s decision to list XRP was their decision alone, and that the exchange was not offered any incentives to list the crypto.
“We’re happy to go on the record. Coinbase’s listing of XRP (also, not ‘our token’) was Coinbase’s independent decision – we did not give them anything to make it happen,” he noted.
We’re happy to go on the record. Coinbase’s listing of XRP (also, not “our token”) was Coinbase’s independent decision – we did not give them anything to make it happen. https://t.co/xTVvACqsQa
— Miguel Vias (@miguelvias) February 27, 2019
Could XRP Markets Be Increasingly Manipulated Post-Listing?
Following the listing earlier this week, Coinbase’s CEO Brian Armstrong responded to allegations that his company, or its employees, engaged in insider trading of XRP just prior to its listing with a laughing face emoji in a since-deleted tweet.
brian_armstrong deleted after 10 minutes pic.twitter.com/xgBXqUm5po
— Crypto_Deleted_Tweets (@CryptoDeleted) February 25, 2019
In the time since the listing, XRP has surrendered nearly all of the price gains it incurred prior to the listing, which is leading some analysts to view the cryptocurrency’s price as being highly manipulated.
Peter Brandt, a renowned trader and analyst, told his nearly 260k followers that XRP’s daily chart has “all the earmarks of a manipulated market,” which could ultimately spell trouble for the crypto’s investors.
“The $XRP daily chart has all the earmarks of a manipulated market. Manipulated markets historically have not ended well for the bag holders,” he noted.
The $XRP daily chart has all the earmarks of a manipulated market. Manipulated markets historically have not ended well for the bag holders. pic.twitter.com/1tU75qYNnv
— Peter Brandt (@PeterLBrandt) March 1, 2019
Despite this, others were quick to fire back, with Crypto Joe, a popular figure within the XRP Twitter community, responding to the tweet, claiming that manipulation is standard in the crypto markets, and that XRP is creating utility regardless of its price action.
“Newsflash: Crypto markets are manipulated. Took a while for you to figure that out. You think Bitcoin is any different? Difference is, $XRP is set for enterprise utility that will hopefully erase significant manipulation in the future. Very little others can say the same,” he said.
Newsflash: Crypto markets are manipulated. Took a while for you to figure that out. You think Bitcoin is any different? Difference is, $XRP is set for enterprise utility that will hopefully erase significant manipulation in the future. Very little others can say the same.
— Crypto Joe (@Dave_Jonez_02) March 1, 2019
XRP has been able to climb slightly today and is currently trading up over 3% at its current price of $0.323.
Featured image from Shutterstock.
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