XRP causes huge increase in value of crypto exchange Coinbase

The day before yesterday was marked by a huge price increase of XRP. In the lawsuit between Ripple and the US Securities and Exchange Commission (SEC), the judge has ruled favorably on XRP. Coinbase immediately decided to offer XRP to its customers again, and the share of the American exchange has experienced another significant growth spurt.

Bitcoin exchange rises 25% in value after Ripple news

Immediately after the news, the crypto exchange decided to offer XRP again on the trading platform, just like some competing exchanges. Coinbase’s share price (ticker symbol: COIN) rose 29% immediately after the news on Thursday, and 25% from the opening to the close of the exchange.

Since January of 2021, XRP was no longer part of Coinbase’s offering. The price was a lot lower at the time, so the reopening took place at a price that was almost 200% higher.

Ripple is not the only one in conflict with the SEC, as Coinbase is also involved in a lawsuit with the government agency. The SEC finds that Coinbase has offered several cryptocurrencies as unregistered securities.

It is possible that investors are not alone bullish are on Coinbase because it is offering the popular cryptocurrency again, but also because it could potentially affect Coinbase’s chances in court. If the lawsuit ends favorably for Ripple, Coinbase may also have better odds against the SEC.

Is the optimism surrounding the crypto exchange due to XRP unjustified?

But not everyone is equally positive about it Coinbase’s success. The German investment bank Berenberg wrote according to CoinDesk in a research report that the optimism is exaggerated. Berenberg also thinks that investors Ripple’s success increases the chances for other altcoins from Coinbase’s offering, but the lawsuit against Coinbase was not just about other tokens.

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The company would also operate as a broker, exchange and without a license clear house function. The lawsuit against Ripple has no influence on that. The two lawsuits are therefore largely unrelated, according to the investment bank.

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