Shortly after Coinbase announced it is adding Ripple’s XRP to Coinbase Pro today, renowned cryptocurrency analyst Sir ฿itlord has accused the popular exchange of involving in insider trading.
The Bitcoin analyst raised the observation after Coinbase Exchange’s CEO uploaded a smiling Emoji on Twitter and latter deleted it.
Sir ฿itlord then came on Twitter to raise his allegations:
“Want to know how insider trading works? This $XRP listing on coinbase breaks it down,” he said.
Want to know how insider trading works?
— ฿ITLORD 01 (@Crypto_Bitlord) February 25, 2019
Before Coinbase announced it is listing Ripple’s XRP on Coinbase Pro, the digital asset had gained 3.5%. This, to many, is unusual.
The fact that XRP has been gaining some 3.5% before Coinbase announcement inferred that the listing information has been leaked out before the official announcement. Based on observations, Ripple’s XRP rallied for less than an hour before declining 3% afterward.
Before the listing became public, different individuals have alleged that some people have the knowledge of it and hence, what happened. It is possible those who bought the digital token before the listing became public dumped their asset after gaining a 8% profit.
brian_armstrong deleted after 10 minutes pic.twitter.com/xgBXqUm5po
— Crypto_Deleted_Tweets (@CryptoDeleted) February 25, 2019
Coinbase has been alleged of in-house trading in the past. Last year, the crypto exchange was faced with two distinct in-house trading lawsuit over Bitcoin Cash listing.
History of Coinbase In-house Trading
In March 2018, Coinbase was first hit by a class action lawsuit over alleged insider trading during its launch of bitcoin cash. The case was brought by Jeffery Berk, who represented a number of investors who placed trading orders on Coinbase or on GDAX.
However, the lawsuit was denied hearing for not comprehensively defining Coinbase’s duties and failures relative to the accusation. Another lawsuit by Jeffery came in around November.
An Alleged $100 Million Incentive From Ripple (XRP) Couldn’t Do
In April 2018, the third largest cryptocurrency by market cap was accused of offering Coinbase incentive to buy its way into the platform.
According to an update from Bloomberg and Steemit, the San fransisco tech company, Ripple allegedly handed in $100 million worth of XRP to the US based cryptocurrency exchange platform, but the offer was claimed to be rejected by the receiving end.
Despite the fact that Ripple had partnered with countless of banks to make use of its technology as well as its coin for cross border transactions, the tech company still sees the exchange as a Sine qua non in the crypto space, probably because Coinbase is undeniable a top exchange platform in US.
While there have been several claims around the crypto space that trading platforms like Binance, KuCoin, amongst others accept fund from crypto projects to list them, Ripple, allegedly made the incentive offer in a similar manner since it felt its possibility to land on the platform is actually dangling.
While Ripple goes live on Coinbase Pro, there has been no claim of weather any incentive was involved.