Did Insiders Trade XRP Before the Coinbase Listing?

XRP was trading up at approximately 7 percent 15 minutes after the announcement, proving once again that Coinbase listings have a material effect on the price of a cryptocurrency.

Coinbase announced on Feb. 25th that they would be adding XRP as a tradeable asset on Coinbase Pro, following years of speculation from XRP supporters and the broader market that it would eventually be listed.

It is unlikely that XRP would experience such a volume increase out of line with the broader market without news driving the event, hinting at the conclusion there was likely an information leak during the listing discussions.

It's not without precedent for Coinbase listings.

Bitcoin Cash, the third major listing on Coinbase after LTC and ETH, was plagued by similar accusations of insider trading from multiple parties.

Prior to the listing of BCH, there was similar price action with the price and volume of BCH increasing substantially in the hours leading up to the listing.

Coinbase vehemently denied accusations of insider trading, and after a six-month internal process, "Cleared" all employees of "Improper trading."

Cryptocurrency itself is a market driven by insiders in many ways, as there is a large body of evidence pointing to concentrations of wealth and information among those with access to high profile companies and protocols.

For most traders, it is critical to acknowledge that they are typically trading at a disadvantage when there is information asymmetry.

Many traders pride themselves in being able to catch exchanges as they list assets in order to ride the following price appreciation.