If the US Securities Exchange Commission (SEC) decided to go after Bitcoin like it’s doing to Ripple, Bitcoin would fall just as quickly as Ripple’s XRP has in the last couple of days, according to renowned Bitcoin critic and gold crusader Peter Schiff. “What happens to the price of #Bitcoin if the sec alleges that […]
A Grayscale spokesperson confirmed to Cointelegraph that the fund manager didn’t dump massive stakes of XRP and XLM.
On Wednesday, a public Bybt data set suggested that Grayscale Investments reduced its exposure to XRP by roughly 9.19 million units and that the fund also cut its XLM holdings by over 9.74 million units. According to Bybt data, the net change in holdings occurred over 24 hours on Tuesday.
Cointelegraph accessed the data before Grayscale released its daily assets under management report for Tuesday and noted in an article that Grayscale had reportedly sold significant amounts of XRP and XLM.
Efforts to reach Grayscale on Wednesday were unsuccessful. However, on Thursday, a Grayscale spokesperson told Cointelegraph:
“None of the Grayscale investment products operate a redemption program. The net holdings of our investment products only change as a result of inflows from the private placement, price of the underlying assets and accrued management fee.”
“Statements about large sales of underlying assets by any of our investment products are false and inaccurate. Any perceived large decrease in the USD value of Grayscale XRP Trust would have been a result of a decrease in the USD price of XRP.”
Bybt’s data feed still shows a large outflow of XRP and XLM from Grayscale over the past seven days, both in terms of AUM and actual units of XRP and XLM held. These figures appeared under the “24H Change” column on Wednesday.
The Grayscale AUM report for Wednesday was released on Thursday. It reads:
Attempts to contact Bybt have not yielded any responses.
Top digital asset management firm Grayscale has allegedly dumped more than 9 million XRP from its portfolio following the SEC lawsuit against Ripple. According to a snapshot of the Grayscale investment holdings page, the XRP was sold on 29 December 2020. This coincides with when XRP crashed below $0.2. XRP has experienced a steep drop in […]
The token has lost more value than former commodities trading giant Enron.
The XRP token’s market capitalization has fallen almost $130 billion since its all-time high in 2018, making the cryptocurrency project’s decline comparable to the collapse of major financial institutions.
According to Josh Frank of crypto-focused research company The TIE, the project is experiencing a collapse similar to some of the biggest corporate scandals and catastrophes in recent history.
XRP’s market cap has fallen by 93% from $137B to under $10B. That makes the value of the XRP collapse bigger than Enron and Worldcom.
While not a bankruptcy, XRP is effectively the third largest collapse of all time behind Lehman Brothers and Washington Mutual.
— Joshua Frank (@Joshua_Frank_) December 30, 2020
At its peak, XRP’s market capitalization was roughly $140 billion in January 2018. It has recently slipped under $10 billion, an estimated loss of $130 billion in under three years. This effectively makes the “collapse” of XRP third behind only the $327 billion bankruptcy of Washington Mutual and the failure of investment giant Lehman Brothers — a financial meltdown valued at $691 billion — in 2008.
“It is sad and unfortunate that the biggest losers in the [XRP] saga are the individual investors who lost unimaginable amounts of money,” Frank told Cointelegraph. “The founders of Ripple continued to dump their tokens for years and made hundreds of millions of dollars.”
Following the news that the U.S. Securities and Exchange Commissions would charge Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen with conducting an “unregistered, ongoing digital asset securities offering” for their XRP sales, the token price has dropped precipitousl. Crypto exchanges including Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy, and CrossTower later announced they would suspend trading for XRP or delist the token entirely, providing additional bearish fuel.
Institutional players have also started distancing themselves from XRP. Grayscale Investments’ website now states that its “XRP Trust private placement is currently closed” with one Twitter user claiming the firm would also no longer process pending applications for the XRP Trust.
At the time of publication, the price of XRP is $0.21, having fallen more than 65% in the last 30 days.
Coinbase plans to suspend trading for the token on Jan. 19 but added it “may be halted earlier as needed.”
Major cryptocurrency exchange Coinbase will suspend trading for XRP in response to the United States Securities and Exchange Commission taking legal action against Ripple.
According to a blog post published today by Coinbase chief legal officer Paul Grewal, the exchange will fully suspend XRP trading starting on Jan. 19 at 10:00 am PST. Coinbase clarified that “trading may be halted earlier as needed” to maintain the exchange’s market health metrics. In addition, the suspension will reportedly not affect Ripple-backed Flare Network’s upcoming Spark (FLR) token airdrop.
“The trading suspension will not affect customers’ access to XRP wallets which will remain available for deposit and withdraw functionality after the trading suspension,” said Grewal. “We will continue to support XRP on Coinbase Custody and Coinbase Wallet.”
The U.S.-based exchange is the largest so far to take a position on XRP following the Dec. 22 announcement that the SEC will charge Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen with conducting an “unregistered, ongoing digital asset securities offering.”
Earlier today, crypto exchange OKCoin announced that it will suspend XRP trading and deposits beginning on Jan. 4. Bitstamp stated it will halt XRP trading for U.S. residents, while smaller exchanges including OSL, Beaxy and CrossTower announced they will take similar actions against trading the token.
Some crypto users are anticipating other exchanges falling in line like dominoes to delist or suspend trading of XRP now that a major player like Coinbase has taken a position on the token.
“You will soon see Kraken, Bittrex, Genesis, Grayscale and other members of the Crypto Rating Council delist it too,” said Twitter user PratikKala. “Liquidity will dry up and the remaining market makers in Asia will have to exit it too.”
Grayscale Investments may have already have distanced itself from XRP. According to Twitter user “ShardiB2,” the firm is reportedly ending subscriptions for its XRP Trust by announcing it would no longer accept new subscriptions or process pending ones. The Grayscale website declares that “The Grayscale XRP Trust private placement is currently closed.”
Following the Coinbase announcement, the price of XRP immediately dropped more than 10%, falling from $0.28 to $0.25 at the time of publication. This is the latest in a series of bearish movements for the token, the price of which has fallen 44% since the SEC announcement.
19:05 ET 12/28/20: Updated with further details.