The Ripple Effect: XRP’s Price Surge and Coinbase’s Optimism
Ripple’s Legal Victory Sparks Crypto Exchange Surge
On a momentous day in the cryptocurrency world, a favorable ruling in the lawsuit between Ripple and the US Securities and Exchange Commission (SEC) has had significant implications. The judge’s decision in favor of Ripple prompted Coinbase, one of the leading American exchanges, to immediately reintroduce XRP to its trading platform. As a result, Coinbase experienced a remarkable surge in its share price.
The Return of XRP to Coinbase
Following the positive news, Coinbase swiftly resumed offering XRP for trading, following the lead of some other competing exchanges. This move had an immediate impact on Coinbase’s performance, with its share price (ticker symbol: COIN) spiking by 29% on the day of the announcement and rising 25% throughout the trading session.
Notably, XRP had been absent from Coinbase’s offerings since January 2021. Consequently, its reopening on the platform came with a price nearly 200% higher than when it was last available.
Coinbase’s Battle with the SEC
Coinbase finds itself in a legal tussle not only with Ripple but also with the SEC. The government agency accuses Coinbase of listing various cryptocurrencies as unregistered securities. Therefore, the reintroduction of XRP has potential implications for Coinbase’s ongoing litigation, as a favorable outcome for Ripple could bolster Coinbase’s position against the SEC.
Questioning the Optimism: Is Coinbase’s Success Hyped?
Despite the jubilation surrounding Coinbase’s resurgence, not everyone shares the same level of enthusiasm. German investment bank Berenberg, in a research report cited by CoinDesk, contends that the optimism is exaggerated. While Ripple’s legal victory might improve prospects for other altcoins on Coinbase, Berenberg argues that the lawsuit against Coinbase encompasses more than just other tokens.
The investment bank points out that Coinbase allegedly functioned as a broker, exchange, and clearinghouse without the necessary licenses. This aspect of the lawsuit against Ripple has no direct bearing on Coinbase. Therefore, the two legal cases are largely unrelated, according to the analysis by Berenberg.
Ultimately, the true impact of Ripple’s legal win and Coinbase’s decision to offer XRP again remains to be seen. This development undoubtedly adds a new layer of complexity to the evolving regulatory landscape, with both Coinbase and Ripple at the forefront of scrutiny.