Ripple (XRP Coin) Investors Ask FINRA to Probe Coinbase on Price Manipulations
Finra Urged by XRP Users to Carry Out a Probe On Alleged Price Manipulation by Coinbase
Coinbase has recently found itself dealing with new allegations of price manipulation after making a decision to tests coins that have been deemed to be smaller than XRP. The XRP community is reportedly furious with Coinbase after it announced that it would be testing new assets that include OX (ZRX), Cardano (ADA), Zcash (ZEC), Stellar Lumens (XLM), and Basic Attention Token (BAT).
The investors lashed out at Coinbase and accused it of attempting to manipulate exchange prices. The allegations stem from the fact that Coinbase chose to go with the smaller coins, instead of considering major coins such as XRP.
XRP Investors Request FINRA to Investigate Coinbase For Price Manipulation Allegations
As soon as Coinbase made its decision known to the public, XRP investors such as Pete Dakin asked the U.S regulator to get involved and investigate the exchange for price manipulation. The investor used his twitter handle to make this appeal to the regulator.
According to the investor, he believes that Coinbase may be using its powers to manipulate market prices. To those who were following the conversation, it came as a surprise when FINRA replied to the tweet sent out by Pete.
The reply can be taken to mean that the regulator will indeed be looking into the allegations put forward by the investor. If you were to look at the list based on Coin Market Capitalizations, it would seem that this exchange has missed out on coins deemed liquid and attractive by many investors.
It, therefore begs the question why an exchange would choose a smaller coin, as opposed to a much larger one. This is primarily because of the fact that many exchanges choose to go for coins that are attractive to investors, and which are likely to bring better returns. Investors are, therefore, left trying to determine what Coinbase plans may be.
Past Price Manipulation Claims
It seems that this is not the first time that Coinbase is facing such allegations, as it also underwent the same heat last year. Last year, the exchange was blamed for taking advantage of the Bitcoin Cash rollout.
Many investors were of the belief that people working for the exchange tried to profit from advanced knowledge of BTC roll out. The allegations started when the value of the token started to swell even before it had been released. People in the know believe that Coinbase may have been forced to investigate these allegations as the launch of the token was not only delayed, but it was also characterized by service outages.
The service outage led to price fluctuations. While some accuse the platform of trying to manipulate prices, those supporting it believe that XRP may have been excluded due to the fact that it has been facing some serious issues when it comes to the centralization of all its digital assets.
Coinbase is on record emphasizing that cryptocurrencies ought to be decentralized. The involvement of FINRA in this matter will help things to become clearer. In addition, it is also expected that Coinbase may choose to release a statement on this issue in order to make its stand well-known.