By Hassan Mehmood (Saudi Arabia)
It is a very difficult time for Ripple as the price value has decreased by more than 28% over the last 24-hours as a result of massive coin dumping on the part of investors. Some crypto exchanges have also started to halt the trading of XRP.
41% Loss in the Last Three Days
In the last three days, the value of the XRP coin has plunged by 41% over the largest cryptocurrency exchange Binance. The negative trading behavior happens after the Securities and Exchange Commission (SEC) filed a lawsuit against the San Francisco-based firm for running a sale of an unregistered security. The news of SEC’s lawsuit has proved a catalyst in a massive sell-off over exchanges.
Exchanges at a small level have already taken the decision to delist XRP from their platforms. These exchanges include Beaxy, OSL, and CrossTower which have stopped giving trading services for the cryptocurrency. However, no big exchange has delisted the coin so far.
The legal advisors in the crypto space have claimed that trading platforms offering XRP trading are also at risk because the token is “deemed a security.”
“You know who is at risk if XRP is considered a security? EVERY EXCHANGE THAT LISTS XRP,” said Hailey Lennon from the Anderson Kill.
In the lawsuit, the SEC has also accused Ripple of offering money to exchanges for “buying and selling of XRP.” The lawsuit stated:
“In 2017 and 2018, Ripple also entered into agreements with at least ten digital asset trading platforms — none of which were registered with the SEC in any capacity, and at least two of which have principal places of business in the United States — providing for listing and trading incentives with respect to XRP.”
However, the fate of the firm will be decided after the court’s decision. The Ripple has decided to fight the case in the court and not to settle it with SEC individually. Ripple CEO Brad Garlinghouse has responded to it and said he would fight the case along with co-founder Chris Larsen.
Some exchanges have terminated the trading of XRP on a temporary basis. Hong Kong-based exchange OSL has terminated the “trading services on the OSL platform effective immediately and until further notice.”
XRP is now standing in a very sensitive state as price value has crashed enormously over the last 24-hours. It has lost more than 28% over the last 24-hours.
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