XRP Falls 10% as Coinbase Pro Refutes Claims of Relisting
Thousands of Coinbase Pro users thought the crypto trading platform had made a U-turn on its delisting decision after they saw XRP pairs trading on the platform. Back in January, in a move that was informed by the US SEC’s regulatory pressure on Ripple, the blockchain technology firm behind XRP, Coinbase Pro had deactivated trading pairs for the cryptocurrency consisting of XRP/GBP, XRP/BTC, XRP/USD, XRP/EUR.
Earlier on Thursday, the seventh-largest cryptocurrency capitalized on the relisting rumors and gained 12% on the day as its trading volume surged. However, the crypto exchange has denied such claims attributing the incident to a technical error, perhaps in a bid not to have a run-in with the US SEC. Following the denial from the crypto exchange, XRP lost its 12% gain and dipped by 10%.
Coinbase Pro Blames Technical Error for Alleged XRP Relisting
As of press time, the trading pairs on XRP were no longer available as Coinbase Pro made efforts to rectify the supposed technical error. Addressing the issue via its official Twitter account, Coinbase Pro noted that the pairs were briefly viewable on its mobile application, but could not be traded by its users.
The temporary relisting of the XRP token may likely be the response of Coinbase Pro to the myriad of requests from some members of the XRP community after the exchange had a fallout with the US SEC on one of its products. They had requested that the exchange showed solidarity by relisting XRP, thereby proving to the US regulator that it had overstepped its bounds. A Twitter user suggested that it would be a good time for the crypto industry to stand together.
US SEC Threatens Coinbase With Lawsuit Over New Product
Despite the argument, it does not seem likely that Coinbase would accede to the request as it has already had a run-in with the commission on its yield product in which users can lend their USDC holdings in exchange for a 4% interest. The product was due for launch this month.
According to the regulator, the product had the outlook of a security. While notifying users of the development, Coinbase noted that the US SEC refused to offer any explanation despite its compliance and threatened it with a lawsuit if it went ahead to launch the product. As per Coinbase, the launch has been moved to October.
Meanwhile, Ripple has been in a protracted lawsuit with the US SEC since November 2020. At the time, the US regulator claimed that Ripple sold $1.3 billion worth of unregistered securities to investors without recourse to a relevant regulatory body which is the SEC itself.
In the wake of the lawsuit, several exchanges aside from Coinbase Pro delisted XRP and related trading pairs. Notwithstanding, XRP maintained its listing position on other exchanges including leading crypto exchange, Binance.
Despite its woes with the US SEC, XRP has gone ahead to achieve new milestones including an all-time high of $3.04 back in April. The regulatory woes have not affected its growth; XRP has grown by more than 40,000% since the all-time low of $0.0026. XRP was the sixth-largest cryptocurrency by market cap but lost the spot to Solana after the latter’s impressive performance earlier this week.
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