Ripple is experiencing a collapse biggest in development history
XRP’s market cap has dropped by almost $ 130 billion since its all-time high in 2018, making the decline of the crypto project comparable to the demise of major financial institutions. It seems XRP is going through a demise similar to some of the biggest corporate scandals and disasters in recent history.
— Joshua Frank (@Joshua_Frank_) December 30, 2020
Are Ripple and XRP facing the biggest crisis in their history?
At its peak, XRP’s market cap was around $ 140 billion in January 2018. Recently, it has dropped to below $ 10 billion, with estimated losses of $ 130 billion within 3 years. This actually leaves XRP in third place after Washington Mutual’s $ 327 billion bankruptcy and the failure of investment giant Lehman Brothers – a $ 691 billion financial crisis. – 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.”
Binance announced that U.S. customers will not be able to deposit or trade XRP (+9.05%) on the platform effective 10:00 a.m. ET on Jan. 13, 2021, though withdrawals remain unaffected at this time.
Other exchanges to delist or suspend XRP trading or markets include:
- Swipe Wallet
- Jump Trading
- Galaxy Digital
Institutional players have also begun moving away from XRP. Grayscale Investments’ website now claims that the XRP Trust’s private release is now closed with a Twitter user claiming that the company will no longer process pending applications for the XRP Trust.
According to the SEC suit, which was filed last week in the U.S. District Court for the Southern District of New York, Ripple, CEO Brad Garlinghouse and Chairman Chris Larsen have sold some $1.3 billion in XRP since 2013. The SEC alleges that Ripple did not register XRP as security or seek an exemption for the token, of which it holds nearly 50 billion in escrow.
For its part, Ripple has called the allegations “unproven,” and has promised to file a response in court in the coming weeks. The San Francisco-based firm has repeatedly called the SEC’s suit an “attack on crypto” in the U.S., with CEO Garlinghouse claiming the agency’s actions “directly benefit China.”
A pretrial conference has been scheduled for Feb. 22, 2021, according to public court records, with the parties required to submit a joint letter describing the case and the arguments each side plans to make, potential motions, and any potential settlement details the week before.
The SEC and Ripple must also file a joint letter by Feb. 15 stating whether both parties are willing to consent to have a magistrate judge oversee proceedings (rather than a district judge).
- First Pretrial Conference In The SEC-Ripple Case Has Been Set For February 22, 2021
- Binance.US And Genesis Trading Will Suspend XRP Trading, But CEO Uphold Siding With Ripple