The SEC security lawsuit against Ripple is proving to be a death knell for XRP as its price continues to tumble to new lows every day. The price of the XRP token has crashed by more than 70% since the lawsuit announcement as more exchanges continue to delist XRP from their platform especially those who are serving the US customers.
The price of XRP has fallen below $0.20 and currently trading at $0.19 with over 35% loss of market in the past 24 hours.
XRP’s crashing price has already cost it the long-held third-position by market cap to Tether and today Litecoin flipped it to take the fourth spot as well. Ripple claims that it has a strong case to stand a chance in the court and despite the SEC’s breather of 5 years to crypto brokers and platform offering security tokens the crypto platforms continue to delist XRP from their platform.
Every day since the lawsuit one or other exchanges have announced delisting of XRP token from their platform owing to its security status. Coinbase and OKCoin joined the growing list of exchanges delisting XRP from their platform. As of now, 7 platforms have announced delisting of XRP tokens and services from their platform. The list of Exchanges include,
Coinbase became the latest exchange to announce the delisting of XRP trading services from its platform by January 19. Coinbase is one of the leading US-based crypto exchanges with millions of customers and it was only a matter of time before the announcement came in.
Fidelity-backed crypto platfrom OSL was the first crypto service provider to distance itself from XRP token post-security accusations and lawsuits.
Please note: In light of US Securities & Exchange Commission’s enforcement action against Ripple Labs & 2 of its executives, we have suspended all #XRP payment in and trading services on the OSL platform, effective immediately and until further notice.https://t.co/EXJJEHMawn
— OSL (@osldotcom) December 23, 2020
Bitstamp is among the earliest and largest crypto exchanges serving the US customers, they announced that they would halt all the XRP trading services on its platform for the US customers at the start of January.
San Fransico based Bitwise is known to be among the leading crypto asset managers, the firm announced the liquidation of its XRP funds from its 10 Crypto Index Fund as the company does not invest in any security.
OKCoin also announced the delisting of all XRP trading services from its platfrom starting from 4th January 2021.
Beaxy is a Chicago based crypto exchange and was among the earliest to announce the delisting of the XRP token from its platfrom.
Crypto.com is a popular name among US customers and it also became one of the many exchanges to announce the removal of XRP trading services from its platfrom for US customers.
XRP Almost an Untradable Token in the US
The SEC lawsuit against Ripple has made XRP almost untradable as most of the leading exchanges are either based out of the US or offer their service to the US customers. The SEC is known to come hard on platforms that do not adhere to the regulations in place and thus no one wants to take the risk of inviting SEC’s rath by offering XRP trading services.
Many more exchanges would follow the suit and all eyes are now on the US subsidiary of Binance, since owing to the same security regulations they had to open a separate exchange to offer their service to US customers. While key Ripple partners outside the US such as SBI Holdings have extended their support to Ripple and promise to use and promote XRP as well, the US-based partners such as MoneyGram have taken a cautionary measure and currently trying to distance itself from Ripple despite being a key partner.