Investor Stern Drew has raised serious concerns regarding Coinbase's recent handling of XRP reserves. In his analysis, he pointed out a significant reduction in holdings on the platform.
Decrease in XRP Reserves at Coinbase
Stern Drew noted that data from XRPScan shows Coinbase reduced its XRP holdings from 780 million to 199 million within weeks. This represents a 69% decrease, effectively removing the exchange from the list of major holders, pushing it toward the lower end of the top ten.
Trading Patterns and Outflows
According to Drew, Coinbase’s selloffs accounted for approximately 581 million XRP, valued at nearly $300 million at current market prices. He emphasized that 40% of the outflows were routed through over-the-counter desks connected to New York institutions, coinciding with notable dips in XRP’s price. Drew further noted that 72% of the selling activity occurred during low-liquidity hours, specifically between 2 a.m. and 5 a.m. UTC. He also highlighted that Coinbase allegedly fragmented the flows to disguise the scale of the movements.
Alleged Motivations Behind Coinbase's Strategy
Drew proposed three possible motivations behind Coinbase's actions. The first was external pressure from groups tied to 'ETHGate', citing Coinbase's links with ConsenSys and the Ethereum Foundation. The second motivation was Wall Street positioning, where institutional players could drive retail investors out before accumulating XRP at lower prices. The third potential motivation was to use XRP price pressure as leverage in U.S. policy negotiations.
Drew concluded that Coinbase's reduction of its XRP reserves should be interpreted as more than routine exchange management, indicating structural challenges for established systems.
