Ripple: Coinbase allegedly manipulated XRP holdings
- XRP proponent Stern Drew noted that Coinbase's XRP holdings declined sharply over the summer—from nearly a billion tokens in June to less than a third by the end of August. The number of wallets also shrank from 52 to 16. He claims that Coinbase moved XRP to multiple wallets and sold it during periods of low liquidity, allowing institutions to accumulate XRP more cheaply via OTC desks.
🚨 COINBASE IS MANIPULATING XRP
XRPScan data shows Coinbase cut its stash from 780M → 199M XRP in weeks – a 69% slash.
Once the 5th-largest holder, they're now barely in the top 10.
This isn't normal selling. It looks like coordinated manipulation. Let's decode 👇🧵 pic.twitter.com/yGrxPRku2l
— Stern Drew (@SternDrewCrypto) September 5, 2025
- Experts warn that on-chain data alone does not prove market manipulation. Exchanges regularly adjust their wallet structures for liquidity reasons. Similar declines have been observed on other platforms. Ripple lawyer Bill Morgan pointed out that XRP price fluctuations are common across the market, even when Coinbase delisted the token earlier.
- Ripple CTO David Schwartz called the manipulation allegations unfounded, saying the XRP price is determined by regulatory uncertainty and macroeconomic factors, not by the actions of individual exchanges. Coinbase has not yet commented. Regulators have also not yet initiated any investigations. The case thus remains a community-driven controversy, once again highlighting the distrust many XRP supporters have toward major US exchanges.
- XRP is the native token of Ripple Labs and was developed to enable fast and cost-effective cross-border payments between financial institutions. Unlike traditional proof-of-work or proof-of-stake systems, XRP is based on a consensus algorithm that allows for particularly fast transaction confirmations. However, the token has been the focus of regulatory debates for years, particularly due to the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), which has significantly influenced its price.
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- X-Post from Stern Drew | X
