Yes, XRP And New Coinbase Inclusion Has Already Sparked Ripple Insider Trading Rumors
XRP Sees Major Gains As It Is Listed On Coinbase – Is This The Work Of Insider Trading?
XRP seems to keep pushing itself into the headlines lately. Only last week, it kept being brought into the conversation on the JPM Coin, a new asset being publicized by JPMorgan, due to their similarities in their ledger and use cases. However, now, the attention turns to their recent listing on Coinbase, causing the token to jump up by about 10%.
Unfortunately, some users are accusing the platform of insider trading. It is believed that there were multiple people with advanced knowledge of the listing, who ultimately started trading before the listing happened. Sometimes, this effect is attributed to the popularity of Coinbase, but the fact that the rally of the XRP token happened ahead of the start of trading is leading some individuals to believe that insider trading is more likely. In fact, user Sir ฿itlord on Twitter posted an image to illustrate his point:
The announcement came yesterday that XRP would be added to Coinbase Pro, which is almost a relief to the supporters of the crypto asset after years of rumors and hope. According to data collected from the charts on these cryptocurrencies, the trading of XRP increased by six times over their typical volume within the hours before the announcement actually happened.
Whenever any new coin is listed to this platform, the Coinbase effect happens. Essentially, this effect simply means that newly listed tokens tend to skyrocket in their price when the token is listed as users prepare for full trading. The token usually tapers out after the first day or two, but this change in price ends up resulting in the accusations of insider trading.
Before the addition of Bitcoin Cash to the Coinbase Pro platform, a similar situation happened with the price and volume, which was also mere hours before the listing. Coinbase has consistently denied any possibility of insider trading, going as far as an internal investigation that ultimately “cleared” any and all employees of “improper trading.”
However, the listing of Bitcoin Cash was a while ago, and there has not been a comment yet in this situation if the employees are truly innocent of “improper” actions on the XRP listing.