Ripple Falls as Coinbase Inclusion Rumor is Officially Quashed

John McMahon | March 6, 2018 | 9:00 am

Ripple Falls as Coinbase Inclusion Rumor is Officially Quashed

John McMahon | March 6, 2018 | 9:00 am

The price of Ripple’s XRP token which spiked on Monday falls back beneath a dollar as the Coinbase rumor is officially quashed on twitter.

Ripple Falls Back Under One Dollar Mark

The third largest trading cryptocurrency Ripple lept up 17 percent on Monday amid rumors it was to be listed on Coinbase, one of the worlds most popular exchanges. Only to fall back beneath $1 today as Coinbase officially denied the listing on Twitter.

The rumor which gained momentum on social media over the weekend and through to Monday was based in large part from announced appearances of both Brad Garlinghouse CEO of Ripple and Coinbase CEO Asiff Hirji on CNBC’s “Fast Money” program.

Although there was never an official announcement nor even an indication the two would be appearing together or if it was just a coincidence the news helped push XRP’s price over a dollar to trade at $1.05, a 17% increase over 24 hours according to coinmarketcap.com.

Coinbase which is the leading U.S. marketplace for buying and selling cryptocurrency currently trades bitcoin, bitcoin cash, litecoin, and etheruem. The addition of a new coin to the lineup would likely bring in many new buyers and boost its selling price.

As it turns out the rumors were false. The appearance by the two CEO’s on “Fast Money” was just a coincidence and even though Coinbase made a statement on Monday there was no agreement made it reiterated the news on Twitter today.

Our January 4th, 2018 statement continues to stand: we have made no decision to add additional assets to either GDAX or Coinbase.

Any statement to the contrary is untrue and not authorized by the company.

Since the official announcement was made XRP has fallen back beneath a dollar to just about where it was pre-rumor at $.96.

Rumors Fuel FOMO

This isn’t the first time Ripple has experienced gains because of rumors of a Coinbase partnership. It also saw a price surge to an all-time high of $3.84 in December 2017 that was driven by speculation it would be added to Coinbase.

A spokesman for Ripple declined to comment on the trading activity telling CNBC only that the company doesn’t respond to rumors or speculation.

The quick spike and drop in the price of XRP are demonstrative of the capricious nature of the cryptocurrency market where rumors spread on social media sites like Twitter and Reddit can create a buying frenzy based on FOMO (fear of Missing out).

Larger buyers will make moves based on market scuttlebutt and are inevitably followed by retail players who are most likely to suffer the loses when the rumors turn out to be false and prices fall.

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  • Stuart H

    Did you notice how Ripple said they do no respond to rumors or speculation? That is business 101. Coinbase was reckless to even respond because it was only a rumor and a reply either way would manipulate the price in the market. It is a basic rule: a business does not reply to rumor to either deny or confirm. So why in the WORLD would Coinbase deny a rumor? Sounds to me like once the price hit a certain level someone traded off then decided to bring to price down by replying to the rumor on Twitter. Because businesses do not do this. Which makes me think now Ripple is going to Coinbase.

    • Justin

      I think you are right about Ripple going to Coinbase just because of this.

      • Stuart H

        Its like in Spakespeare when it was said “me thinketh the lady doth protest too much”. To come out and deny what was simply conjecture based on a TV show was putting the cart before the horse and unnecessary. Yet they felt compelled to deny it (but only after the price ran up). Kind of like you would deny it if your surprise birthday party was exposed…your first instinct is to deny. Same here…I am not alone…I was talking to a friend of mine who runs a PR firm and he said their actions indicate they are hiding something and trying to control the narrative. Otherwise they simply would have said nothing like any other business would have.

    • Danilo Tomic

      Your comment is 100% true

    • Frank Wechsel

      Coinbase has already some trouble and is on court under suspicion of inserder trading while BCH was released. The one who really thinks, that they are making a 2nd statement that they are “NOT” adding any more assets to coinbase in the near future has to be pretty foolish… 🙂 just my 2 cents…

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