The issue of Coinbase and Ripple’s XRP (XRP) just won’t go away. XRP (XRP) investors are reading malice into the whole issue. One investor just contacted FINRA, and wants them to investigate Coinbase for market manipulation. Surprisingly, FINRA did respond, and might be looking into it. Take a look at the tweet below.
So what is FINRA, and what possible obligations could Coinbase have in this issue? FINRA is an independent body that is tasked with overseeing relations between dealers and investors. Basically, it’s all about fairness in the securities industry.
But isn’t Coinbase a private company one that has the capacity to choose which cryptos to add, and which ones to leave out. Well, that may be the case for small companies, but as a company gains dominance in the market, obligations change. That’s because their actions at that point have effects outside of the company. To give you context on this, one needs to look at Google. Google is a business like any other, and can ideally decide, which companies appear on its search, and which ones don’t. However, things don’t work like that. If Google were to do this, it would be sued for abuse of its dominance in the market. Maybe the same can apply to Coinbase with regards to crypto.
Coinbase is without a doubt the most recognized crypto exchange in the United States. As such, whatever cryptos they list stand a chance to grow in value. This can be seen in their recent announcement to list Ethereum Classic (ETC). Its price pumped, in spite of the whole market being in bearish. This means that Coinbase could possibly be a dominant player, and its decisions have a direct effect on market prices. Now how does this all connect to XRP (XRP)?
Well, XRP (XRP) is the third largest cryptocurrency by market cap. Therefore, when they decide to list the number one crypto, number 2, then skip the number 3 crypto in favor of others below it, including those below the top 10, then there is course for concern. That’s because such moves could create doubts in investors’ minds about XRP (XRP), and as a consequence adversely affect its price.
While no one knows what angle FINRA will take when looking into this issue, chances are that they will seek to know the motivation for Coinbase to skip XRP (XRP). Are there valid reasons?
Whatever decision they take, XRP (XRP) is increasingly outgrowing the whole Coinbase issue. Bigger exchanges outside of the U.S are listing it, including SBI. Even in the U.S other exchanges such as Uphold are trading it. Besides, by singling out XRP (XRP), it could have the opposite effect of drawing in investors, especially when you factor in its wide and growing partnerships in the banking industry.
At this point, all investors can do is wait. If FINRA finds something and requires Coinbase to list XRP (XRP) it will drive its price through the roof. If nothing comes out of it, XRP still has a future.