A recent controversy in the cryptocurrency world has centered on allegations that Coinbase manipulated XRP prices. The allegations were raised by XRP community activist Stern Drew using the on-chain analysis tool XRPScan.
According to Drew’s analysis, Coinbase’s XRP holdings fell from around 970 million in June to between 260 and 300 million by the end of August. During the same period, the number of the exchange’s XRP wallets also fell from 52 to 16.
Drew claimed that Coinbase sold XRP during periods of low liquidity and distributed it across multiple wallets, coinciding with XRP’s failure to break through the $1.20 resistance level at the time. He also claimed that these transactions were directed to over-the-counter (OTC) desks affiliated with traditional financial institutions, suggesting that the price suppression strategy may have been designed to create opportunities for institutional buying.
There is currently no official evidence to support these claims. Coinbase has not commented on the matter, and there are no investigations or sanctions in the works.
Experts believe the decline in Coinbase’s XRP holdings is largely due to liquidity management and portfolio adjustments. Similar trading patterns are also being observed on major exchanges and OTC desks.
“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,” said XRP advocate Bill Morgan.
Ripple CTO David Schwartz also rejected allegations of market manipulation, arguing that the XRP price is determined by market uncertainties, regulatory issues, and macroeconomic trends.
Claims that Coinbase is manipulating XRP prices are currently just speculation based on internal community analysis.
*This is not investment advice.