The Ripple CTO David Schwartz regrets missing out on an opportunity to buy Coinbase stock immediately after XRP won against the SEC.
The recent ruling on the SEC vs. Ripple case has significantly impacted the crypto market and beyond. Amid XRP’s price pump on the back of the ruling, Coinbase also saw its stock, COIN, surge. Ripple’s CTO, David Schwartz, regretted not capitalizing on this opportunity.
In a tweet, David Schwartz expressed his hindsight regrets, stating, “The first thing I should have done when I heard about the ruling was buy Coinbase stock.”
The first thing I should have done when I heard about the ruling was buy Coinbase stock.
— David “JoelKatz” Schwartz (@JoelKatz) July 14, 2023
Schwartz’s comment highlights his realization that the positive outcome of the SEC vs. Ripple case had a ripple effect on the market beyond XRP. The recent events underscore the unexpected correlation between the legal victory and Coinbase’s stock price surge.
Coinbase Stock Rallies Following XRP Victory
Notably, Coinbase, one of the most prominent cryptocurrency exchanges, experienced a significant surge in its stock price after Judge Torres’ decision. Recall that Coinbase announced plans to relist XRP shortly after the ruling.
The ruling by Judge Torres, which clarified that XRP is not a security, instilled confidence among investors and traders. Following the news of the judgment, COIN surged from $84.41 at 15:00 (UTC) to $109.41 at 23:30 (UTC) on July 13. This marked a 29.6% increase in eight hours.
MarketWatch
A prominent market tracking tool, Unusual Whales, further shed light on the Coinbase stock rally. In their tweet, they noted that the SEC losing the Ripple case news came up at 8:27 (PST).
Yesterday, $COIN went +24% due to the SEC losing their Ripple, $XRP case.
The news came out at 8:27 am PST.
At 8:26 traders started going heavy into $COIN 84 & 85 calls expiring in ONE day.
Those went +860%, from $2.50 to $24.
Someone always knows.
Unusual. pic.twitter.com/nekoZl6xOM
— unusual_whales (@unusual_whales) July 14, 2023
However, intriguingly, at 8:26 (PST), many traders began purchasing “calls” for Coinbase stock, specifically the ones with a strike price of 84 and 85.
Calls are financial instruments that give traders the right, but not the obligation, to buy a specific stock at a predetermined strike price within a certain period.
These particular calls were set to expire in just one day. This suggests that traders had a short window of time to exercise their right to buy Coinbase stock at the predetermined price. The demand for these calls increased rapidly.
The remarkable part is that the value of the calls experienced a substantial surge of 860%. In simpler terms, if an investor bought a call option for $2.50, its value skyrocketed to $24.
Unusual Whales emphasized that this activity suggests that some traders had prior knowledge or a strong intuition about the outcome of the Ripple case and expected Coinbase’s stock price to surge.
