The token has lost more value than the former commodity trading giant Enron.
The market capitalisation of the XRP token has dropped almost $130 billion since its all-time high in 2018, making the decline of the cryptocurrency project comparable to the collapse of major financial institutions.
According to Josh Frank of the crypto-focused research company The TIE, the project is experiencing a collapse similar to some of the biggest corporate scandals and disasters in recent history.
XRP’s market cap has fallen by 93% from $137B to under $10B. That makes the value of the XRP collapse bigger than Enron and Worldcom.
While not a bankruptcy, XRP is effectively the third largest collapse of all time behind Lehman Brothers and Washington Mutual.
— Joshua Frank (@Joshua_Frank_) December 30, 2020
At its peak, XRP’s market capitalisation amounted to approximately $140 billion in January 2018. It has recently slipped under $10 billion, an estimated loss of $130 billion in less than three years. This effectively puts the “collapse” of XRP third behind Washington Mutual’s $327 billion bankruptcy and the failure of the investment giant Lehman Brothers—a financial meltdown of $691 billion—in 2008.
“It is sad and unfortunate that the biggest losers in the [XRP] saga are the individual investors who have lost unimaginable amounts of money,” Frank said to Cointelegraph. “The founders of Ripple have continued to dump their tokens for years and have made hundreds of millions of dollars.”
Following the news about the U.S. Securities and Exchange Commissions would charge Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen with a “unregistered, ongoing digital asset securities offering” for their XRP sales, with the token price falling precipitously. Crypto exchanges including Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy, and CrossTower later announced that they would suspend trading for XRP or delete the token entirely, providing additional bearish fuel.
Institutional players have also begun to distance themselves from XRP. Grayscale Investments’ website now says that its “XRP Trust Private Placement is currently closed” with one Twitter user claiming that the company would also no longer process applications for the XRP Trust.
At the time of publication, the price of XRP was $0.21, down more than 65 per cent in the last 30 days.
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