Ripples (XRP) Insider Trading Allegations Emerge Amidst Coinbase Listing
XRP’s Coinbase announcement has been linked with allegations of insider trading as community points out buying patterns leading up to it.
However, allegations of insider trading are emerging amidst this development, stating that certain people with advance knowledge of Coinbase’s announcement bought XRP leading up to the official Tweet, and sold shortly afterward for a quick 9% - 10% profit.
The official Coinbase Pro account announced the listing yesterday via Twitter:
However, trading charts show an increase in XRP buying volume leading up to the Tweet, after which regular “outsiders” bought the token expecting an appreciation, only to be “dumped” upon.
One of the vocal community members regarding this is Sir ฿itlord on Twitter, @Crypto_Bitlord - who shared his views on this via a periscope video:
He also posted a chart he followed closely prior to and after the official announcement:
The chart clearly shows an increase in XRP buying leading up to the announcement, and then a bit of a sell-off during the actual hype buying phase after it.
Whether or not anyone had insider knowledge of XRP’s listing on Coinbase Pro, this is not the first time we are witnessing this. A similar trend was observed during prior listings, such as the Bitcoin Cash listing on Coinbase, which also resulted in lawsuits. However, Coinbase, after conducting an internal investigation, refuted such claims.
Given how the crypto market is largely unregulated compared to traditional financial markets, such practices go unchecked and are hurdles in the way of institutional adoption of crypto-based financial products. It remains to be seen whether Coinbase will comment on these allegations or not.