XRP Faces More Exchange Suspensions Following Pump & Dump Activity

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In Brief
  • An increase in XRP volatility has raised the eyebrows of exchanges.

  • Coincheck halts XRP trading, Prime XBT removes XRP trading pairs.

  • A coordinated pump and dump may have been the culprit for recent price action.

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XRP is making the news again but for all the wrong reasons. The cryptocurrency has received negative enforcement from both the PrimeXBT and Coincheck exchanges.

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XRP has had a tumultuous day. The cryptocurrency has seen its activity on Japanese exchange Coincheck halted. Coincheck announced the move via Twitter stating that it would be suspending XRP sales.

Coincheck explained that the decision was due to the transaction status with Ripple. Fortunately for traders, the announcement was short lived. The exchange resumed trading ten minutes later.

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However, traders on rival exchange Prime XBT weren’t so fortunate, and the suspension wasn’t so short-lived. Prime XBT has finally relented along with several other high-profile exchanges. It will delist XRP pairs by Wednesday, 10 Feb. The delisting includes both BTC and USDT pairs. 

XRP Pump and Dump?

The news comes after XRP had one of the most volatile days in recent memory. The token managed to reclaim the third spot in terms of market capitalization after a 56% price rally from $0.48 up to $0.75. 

The euphoria of XRP making a massive comeback in one day was short-lived. The token dropped 48% from $0.75 down to $0.39, essentially erasing two days’ worth of gains. 

Source: Tradingview

The dump also saw Tether (USDT) reclaim the number three spot in market capitalization. Traders on Twitter have speculated that the move was possibly related to a large pump and dump group.

However, the ability to pump and dump a top-five cryptocurrency is rather concerning. This would mean the group could theoretically pump a coin of their choosing in the future. This is highly unlikely.

Ripple Rebuttal to No Avail

The recent news surrounding Ripple’s recent response to the SEC charges was one potential reason for the price rise. The firm’s rebuttal to the SEC claims that XRP is not a security. The rebuttal also states that FinCEN approved the sale of XRP in 2015 with no input or warning from the SEC at the time.  

The charges had held a negative cloud over the company, and the XRP price dropped dramatically after the initial claim. The price soared 50% following the news of a rebuttal from Ripple. But it appears the news was not the cause of the price rally. Rather it may have been a coordinated pump. 

A pump and dump is likely not a good look for Ripple. The price manipulation will only cast more shadows on the project in the future.

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Ryan is a Fintech specialist with a passion for cryptocurrencies and blockchain adoption. A keen trader and investor in the market since 2016, he enjoys keeping up to date with the latest developments within the industry while finding the next 100x altcoin.

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