In what would be termed as a strategic move for crypto exchanges worldwide, they are beginning to announce a delisting date for XRP. Ripple made the new some weeks ago for the wrong reasons after the United States Securities and Exchange Commission announced that it had filed a lawsuit against the remittance payment company.
According to the United States SEC, Ripple has been seeking unregistered securities since they started up until this moment. Even though the SEC is generally targeting Brad Garlinghouse and Chris Larsen, XRP has been facing the heat of the latest lawsuit.
Crypto.com to delist XRP by January 19
Following the lead of other crypto exchanges across the space, renowned crypto trading platform crypto.com has announced that starting from January 19, 2021, it will stop allowing its users to trade XRP. Crypto.com is not the first exchange as Coinbase has earlier announced the halt in trading of the remittance coin with other crypto exchanges expected to follow suit in the coming days.
However, this is no longer news regarding the lawsuit that Ripple is set to go through in the next couple of months, if not years. Reacting to the entire development, Ripple has yet again witnessed another major crash in the last few days, with the digital asset significantly seeing a 20% decline since yesterday to sell at $0.22.
In its official statement, crypto.com noted that all its traders and investors across the United States would not be able to trade, buy or sell XRP on its platform starting from the said date. The crypto exchange has further explained that this recent development would not hinder the withdrawals of XRP as investors and traders would be granted a long duration of time to withdraw all their XRP holdings. The crypto exchange has also hinted at how this recent action will affect its crypto earn program, in which XRP is one of the major coins.
Ripple still adamant about fighting the lawsuit
XRP has not had a smooth sailing day after the United States Securities and Exchange Commission announced its lawsuit against Ripple. The digital asset first slipped to fourth in terms of market capitalization in the wake of the lawsuit before finally seeing red in the crypto market. Details show that the digital asset has lost nothing less than 60% of its entire value since the beginning of the issue with SEC.
With SEC announcing its decision, high-value investors in the XRP community started panicking and sold off most of their holdings, dumping them on the market. XRP traded at $0.30 on December 28 but is now trading at a meager $0.22 the following day.
CEO of Ripple, Brad Garlinghouse, has not left his stance that XRP will fight the lawsuit. According to the CEO, the United States SEC has brought out its version of what it feels right, and Ripple is presently consulting its lawyers on what feels right. If this lawsuit is eventually going to favor Ripple, which is highly doubtful, the crypto community would be hoping things would not have deteriorated far more than this.