Coinbase blamed for another price manipulation as exchange tests much smaller coins than XRP. XRP community has been furious since the time Coinbase has announced that it is testing 5 new assets Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), 0X (ZRX).
XRP investors lashed the exchange with blames of price manipulation as the exchange ignored much larger coins including XRP which could have been considered.
XRP investors involve FINRA to check Coinbase price manipulation
As Coinbase announced its decision, XRP investor Pete Dakin, took the twitter handle, appealed to the U.S. regulator to investigate the matter, claiming that the exchange could possibly be abusing its market power.
Please look into the way they are using their power to manipulate token prices inc harm to #xrp
— Pete Dakin (onymous, and you?) (@dakisan) July 14, 2018
What came as a surprise that FINRA replied to the tweet, which can be understood that the regulator will be looking into the matter.
Thank you for bringing this to our attention.
— FINRA (@FINRA) July 15, 2018
If we go according to the list on CoinMarketcap- in order of the size based on MarketCap, Coinbase has missed out on EOS and XRP if we believe its plans to list the best and most liquid coins like most exchanges do and that where the blame comes in that why would a exchange select smaller coins skipping larger ones.
Price manipulation blames not new for Coinbase
Coinbase had faced similar heat last year surrounding the rollout of Bitcoin Cash after several users accused the site’s employees of profiting from advanced knowledge of the news after the token’s value swelled preceding the announcement. It is believed that Coinbase was forced to investigate after the launch was delayed with service outages as the price of the new addition fluctuated wildly.
While this news is surfacing, supporters of Coinbase believe that Coinbase is refraining from adding XRP to its exchange since it is facing serious issues over the level of centralization in the digital asset. Coinbase strongly emphasizes the decentralization aspect of cryptocurrencies.
The other school of supporters believes that Coinbase is interested Ethereum based protocols because it already has the tested technology as Ethereum trades on the exchange. To list a completely new protocol would require additional tests and integration which currently might not be a priority for Coinbase.
With FINRA being involved (if we believe that is), things would soon clear-out. Also with this kind of uproar, it could be expected that Coinbase may come with a statement to clarify its stance.
Is Coinbase actually manipulating prices or is it technological roadblocks that are keeping it away from XRP? DO let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.