XRP News Today: XRP's Market Drama: Manipulation Accusations or Strategic Supply Shift?

Coinbase's reduction of its XRP holdings has sparked debate over potential market manipulation, particularly as claims have emerged suggesting the exchange is artificially influencing the price of XRP. According to recent data from XRPScan, Coinbase slashed its XRP holdings from 780 million tokens down to 199 million—representing a 69% reduction within weeks [1]. This significant drop has placed Coinbase, once the fifth-largest XRP holder, at the 10th position in the rankings [5]. Critics argue that the reduction in holdings may not be a natural market outcome but instead a strategic move to manipulate the asset’s price and suppress its growth potential [2].

However, several voices within the XRP community, including prominent supporters such as CryptoSensei, have challenged the narrative of a "dump." They argue that a drop in exchange reserves does not necessarily equate to the exchange itself selling XRP. Rather, it could indicate that large institutions and investors are moving their XRP holdings into cold storage or custodial solutions, effectively reducing the token’s immediate tradable supply [2]. Such a shift can reduce selling pressure and potentially lead to price appreciation if demand remains stable or increases [2]. The bullish interpretation is further reinforced by the fact that other major exchanges such as Bitget, Binance, and Bybit continue to see substantial XRP trading volumes—each reporting over $1 billion in daily XRP trades [1]. In contrast, Coinbase's XRP trading volume and open interest have not surpassed the $50 million threshold, indicating a relative lack of competitive trading activity for the asset on the platform [1].

The issue of price manipulation has also extended beyond Coinbase to include Binance, with some analysts alleging that the exchange is actively working to suppress XRP’s price. Crypto analyst Pumpius claims that Binance is not just selling XRP but also coordinating strategies to prevent the token from breaking out of its current price range [3]. According to Pumpius, Binance views XRP as a threat to its existing business model, particularly because XRP’s unique role as a cross-border payment solution could disrupt the liquidity pools that underpin Binance’s market-making operations [3]. He further notes that Binance’s actions are part of a broader effort involving powerful investors and legacy financial institutions, all of whom allegedly see XRP as a disruptive force [3].

Despite these allegations, Pumpius also cautions that such suppression efforts may be backfiring as XRP’s fundamentals continue to strengthen. Ripple has expanded its payment corridors in key markets like Japan and the UAE, and innovative projects such as DNA Protocol are leveraging the XRP Ledger to tokenize real-world assets, including genetic data [3]. Each instance of selling pressure, according to Pumpius, results in XRP moving into self-custody wallets, further decentralizing the asset and bolstering its long-term resilience [3].

Adding to the complex landscape surrounding XRP, concerns have also arisen about deepfake scams targeting Ripple’s leadership. A deepfake video falsely depicted Ripple CEO Brad Garlinghouse discussing XRP plans, attempting to deceive community members into a fraudulent scheme [4]. Ripple’s Chief Technology Officer, David Schwartz, raised alarms about the growing threat of impersonation fraud, which uses deepfake technology to manipulate footage of prominent industry figures [4]. Ripple has taken proactive steps to enhance security, including joining TRM Labs’ Beacon network, a real-time crime response platform aimed at combating crypto fraud [4]. Garlinghouse himself has warned XRP holders to remain vigilant against fake YouTube accounts and scams that mimic Ripple’s branding, emphasizing that the company never solicits XRP transfers [4].

Looking ahead, the XRP market appears to be at a pivotal point. The reduction in exchange holdings may indicate a shift in supply dynamics, while the ongoing legal and institutional developments—such as the potential filing of a BlackRock iShares XRP Trust or the approval of an XRP ETF—could signal broader acceptance of the asset [5]. As XRP continues to navigate regulatory and market challenges, the interplay between supply shifts, institutional demand, and strategic manipulation allegations will likely shape its future trajectory.

Source:

[1] Coinbase Dumps 83% XRP; Reserves Down From 60 To ... (https://dailycoin.com/coinbase-dumps-80-xrp-reserves-down-from-60-to-10-wallets/)

[2] Is Coinbase Really Dumping XRP? Here's What the Data ... (https://captainaltcoin.com/is-coinbase-really-dumping-xrp-heres-what-the-data-actually-shows/)

[3] Is Binance Manipulating XRP Price And Driving The Crash ... (https://www.mitrade.com/insights/news/live-news/article-3-1093759-20250904)

[4] Ripple CEO Deepfake Alert: Scammers Exploit XRP Hype (https://www.fxleaders.com/news/2025/09/07/ripple-ceo-deepfake-alert-scammers-exploit-xrp-hype/)

[5] XRP Price News: Token Steadies Near $2.80 as ETF ... (https://www.fxempire.com/forecasts/article/xrp-price-news-token-steadies-near-2-80-as-etf-hopes-build-1546634)