Coinbase plans to suspend trading for the token on January 19, but added “may be halted earlier as needed.”
Primary cryptocurrency exchange In reaction to the United States Securities and Exchange Commission’s action against Ripple, Coinbase will suspend trading for XRP.
According to a blog post published today by Coinbase Chief Legal Officer Paul Grewal, the exchange will fully suspend XRP trading at 10:00 a.m. on January 19. Coinbase explained that “trading may be halted earlier if necessary” to preserve the market health indicators of the exchange. In addition, it is noted that the suspension would not impact the upcoming Spark (FLR) token airdrop of the Ripple-backed Flare Network.
“The suspension of trading will not affect the customer’s access to XRP wallets, which will remain available for deposit and withdraw functionality after the suspension of trading,” said Grewal. “We will continue to support XRP on Coinbase Custody and Coinbase Wallet.”
The U.S.-based exchange is the largest to date to take a position on XRP following the announcement of Dec. 22 that the SEC will charge Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen with the implementation of a “unregistered, ongoing digital asset securities offering.”
Earlier today, Crypto Exchange OKCoin announced that it would suspend XRP trading and deposits starting on Jan. 4. Bitstamp confirmed that it would stop trading XRP for U.S. citizens, while smaller exchanges, including OSL, Beaxy and CrossTower, declared that similar steps would be taken against trading the token.
Some crypto users are expecting other exchanges falling in line like dominoes to delete or suspend XRP trading now that a big player like Coinbase has taken a stance on the token.
“You will soon see Kraken, Bittrex, Genesis, Grayscale and other members of the Crypto Rating Council delist it too,” said Twitter user PratikKala. “Liquidity will dry up and the remaining market makers in Asia will have to exit it too.”
Grayscale Investments may have already have distanced itself from XRP. According to Twitter user “ShardiB2,” the firm is reportedly ending subscriptions for its XRP Trust by announcing it would no longer accept new subscriptions or process pending ones. The Grayscale website declares that “The Grayscale XRP Trust private placement is currently closed.”
Following the announcement by Coinbase, the price of XRP immediately fell more than 10%, dropping from $0.28 to $0.25 at the time of release. This is the latest in a series of bearish token moves, the price of which has fallen by 44% since the announcement of the SEC.
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