XRP price has been in a tailspin, a number of firms have cut off support of XRP for their products
XRP price has dropped sharply since it was reported that the Securities and Exchange Commission will sue Ripple for launching the initial coin offering of cryptocurrency. And that is why the market also suddenly dropped stronger. Several companies have begun cutting down on XRP related services.
XRP price bad news: Bitwise 10 crypto index fund liquidated all, Ripple lawsuit will cause billions of dollars in damage
In a letter to SEC chairman Jay Clayton, former SEC commissioner Joseph Grundfest said:
The SEC states that the sale and issue of XRP is an unregistered security service, giving Ripple co-founders Brad Garlinghouse and Chris Larson the most control over XRP.
Grundfest said the enforcement action could hurt holders of XRP, who, in his view, are innocent third-parties.
He stated:
“But simply initiating the action will impose substantial harm on innocent holders of XRP, de of the ultimate resolution. Upon learning of the proceeding, intermediaries will cease transacting in XRP because of the associated legal risk. The resulting reduction in liquidity will cause XRP’s value to decline. ”
Before the news that the SEC was suing Ripple, the Bitwise fund decided to sell all of the XRP it held. The amount of XRP accounts for nearly 4% of the total assets of the Bitwise fund. Investment fund Bitwise liquidated all of its XRP tokens over the SEC’s lawsuit against Ripple. Bitwise’s fund just opened on December 9 and initially focused on holding the nine largest cryptocurrencies in the current market.
XRP accounts for 3.8-4% of the fund’s portfolio of Bitwise. Since the company has assets under management of $ 245 million, the amount of XRP to be liquidated could be around $ 9.4 million.
The company said:
“The Bitwise 10 Crypto Index Fund does not invest in assets that are likely to be classified as securities under federal or state securities laws. Bitwise’s decision to liquidate XRP tokens is based on a review of new public information from the SEC complaint. ”
So far, the three major crypto exchanges CrossTower, Beaxy, and OSL have stopped trading XRP because of the lawsuit, in which one exchange delisted.
Two of the largest trading desks in crypto have alerted clients that they will stop making markets in XRP
Jump Trading, a Chicago-based secret high-frequency trader, and Galaxy Digital by Mike Novogratz stopped creating markets in XRP after the Securities and Exchange Commission filed a lawsuit against Ripple.
Jump has told its partners that they will no longer provide liquidity for XRP. Meanwhile, Galaxy Digital has suspended trading of digital assets until further announcement.
Since the lawsuit was filed on Tuesday, a number of companies have cut support for XRP for their products.
Sources suggesting that Coinbase has already had discussions with counsel about the delisting of $XRP.
It seems two potential plans are forming, one which puts the delisting on Friday. Unclear which Coinbase products it will impact but most likely Coinbase and Pro.
— Adam Cochran (@AdamScochran) December 23, 2020
Elsewhere, Coinbase appears to be considering delisting XRP as well. Most likely this Friday, a decision will take place. This is a huge loss for Rippe and XRP.
You can see the XRP price here.
Read more:
- By Plunging Over 35% Over The Past Two Days, XRP Price Has Effectively Erased Its November Rally
- Bitwise Has Liquidated The XRP Position Of Its Crypto Index Fund