Grayscale Allegedly Dumps Over 9 Million XRP Following SEC Lawsuit Against Ripple

Coinbase To Suspend Trading Of XRP Next Month Following SEC's Suit

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 […]

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XRP the ‘third largest collapse of all time’ says The TIE’s Josh Frank

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.

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.

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Coinbase announces it will suspend XRP trading as price drops another 10%

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.

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OKCoin latest exchange to suspend XRP trading and deposits

The crypto exchange said the situation between Ripple and the SEC “will take time to reach a resolution.”

Crypto exchange OKCoin announced it would suspend XRP trading and deposits following the news that the United States Securities and Exchange Commission would be pursuing legal action against Ripple.

In a blog post released today, OKCoin said its “best course of action” in response to the recent SEC lawsuit would be to suspend trading and deposits of XRP. The exchange wrote that the suspension would take place over two days. Users who borrowed XRP/USD through OKCoin “are required to return the borrowed value” before Jan. 3. The following day, the exchange will suspend spot trading, margin trading and deposits for XRP.

“It is likely that this situation will take time to reach a resolution,” said the OKCoin blog post. “We will proactively inform our customers when we have information that may change our position.”

OKCoin’s position comes following the SEC unveiling charges against Ripple as well as CEO Brad Garlinghouse and co-founder Chris Larsen on Dec. 22. The commission alleges that the firm and its executives engaged in an “unregistered, ongoing digital asset securities offering” to investors since 2013 through sales of the XRP token. Garlinghouse responded by saying the SEC “voted to attack crypto” and was doing “the opposite of ‘fostering innovation'” in the United States.

Since news of the SEC charges broke, the price of XRP has fallen more than 36% as some exchanges have announced they will halt trading for the token, including OSL, Beaxy and CrossTower. Digital asset exchange Bitstamp is also planning to suspend XRP trading, but only for users based in the United States. However, suspending XRP on OKCoin — ranked at number 29, according to CoinMarketCap — may be a precursor for large exchanges to follow.

At the time of publication, the price of XRP was $0.28, having fallen 3.5% in the last 24 hours.

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Crypto Exchanges Delist XRP Following SEC Lawsuit

Crypto Exchanges Delist XRP Following SEC Lawsuit

“Today, the SEC voted to attack crypto. Chairman Jay Clinton is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH. We know crypto and blockchain technologies aren’t going anywhere. Ripple has and will continue to use XRP because it is the best digital asset for payments. It is […]

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