Users in the crypto Twitter community speculated that the XRP reinstatement was a plan by Coinbase to confront regulators.
The largest cryptocurrency exchange in the United States of America, Coinbase, went through an unusual failure that once again introduced Ripple’s XRP token to the platform’s commercial listing.
On Thursday night, various users arrived on Twitter to express that the platform had re-listed XRP. Coinbase had removed the token from its platform in January this year for fear of a regulatory crackdown.
The news generated great enthusiasm among some users in the crypto community. The situation even created a boost in the price of the cryptocurrency.
However, the excitement soon met its end when Coinbase released a statement explaining that a technical glitch had allowed XRP to become visible on the platform but, it was not available for trading.
Coinbase shut down XRP trading earlier in the year after the US Securities and Exchange Commission (SEC) filed a lawsuit against the Ripple company and its staff of executives.
The legal battle with the regulator generated fear among various exchanges, who opted for a suspension of XRP trading.
Technical Glitch or a Message for the SEC?
The recent glitch that put Ripple’s token back on Coinbase’s trading listings is that it comes just a few days after the exchange received a warning from the SEC for an alleged regulatory breach.
The coincidence of events has pushed community users to hint that XRP and its momentary reinstatement might have been a company stunt to confront regulators after the threat.
Coinbase CEO Brian Armstrong got to Twitter on Wednesday to make the community aware of the threats that came from the federal agency.
He explained that the exchange was ready to launch a loan product that leveraged the USDC stable coin to yield returns to its holders. However, the SEC warned that the product could disrupt federal securities law.
The Violation of Federal Securities Law and Other Relevant Policies
The legal battle between the US regulator and Ripple has its basis on the allegations the SEC filed against the company due to violation of securities law in carrying out the XRP sale. Ripple has defended itself by pointing out that XRP is not a security.
Armstrong and his transparency about the communication the company sustained with regulators generated sympathy among members of the bitcoin community.
These sympathizers had fun with the interpretation of the XRP re-entry movement and the possibility of Coinbase starting a legal fight with the SEC.
Regardless of whether the momentary listing of XRP on the platform was part of a Coinbase plan to challenge regulators or simply a technical glitch, many users arrived on Twitter to have fun speculating around the first scenario.
Some even claimed that they had rushed to trade XRP as a strategy to support Coinbase against the SEC. In contrast, other users suggested that more than a technical error, the addition of the token might have been a manipulation to disrupt the market.
The XRP had reached a new peak after various reports via Twitter, but then the currency returned to the downtrend. The cryptocurrency has fallen 4% in the last 24 hours and more than 16% this week; It is currently trading at $ 1.07.
By: Jenson Nuñez