XRP price falls 24% in 24 hours as exchanges begin delisting

Spread the love

Several exchanges have already halted XRP trading after the SEC’s lawsuit against Ripple was revealed.

XRP price fell 41% on Binance over the past three days as news of the lawsuit by the United States Securities and Exchange Commission against Ripple became apparent. As a result, several small exchanges have already halted XRP trading.

So far, three small exchanges, namely OSL, Beaxy and CrossTower have either temporarily stopped trading or removed XRP.

Daily XRP price chart (Coinbase). Source: TradingView.com

More exchanges may delist XRP

According to prominent lawyers in the cryptocurrency industry, exchanges that listed XRP are at risk if the token is deemed a security.

Hailey Lennon, a partner at Anderson Kill, said:

“You know who is at risk if XRP is considered a security? EVERY EXCHANGE THAT LISTS XRP.”

The SEC alleges Ripple of paying money to exchanges to permit the “buying and selling of XRP” on their platforms.

The official lawsuit filed by the SEC said that Ripple entered into agreements with at least 10 digital asset trading platforms. The lawsuit reads:

“In 2017 and 2018, Ripple also entered into agreements with at least ten digital asset trading platforms — none of which were registered with the SEC in any capacity, and at least two of which have principal places of business in the United States — providing for listing and trading incentives with respect to XRP. Ripple paid these platforms a fee, typically in XRP, to permit the buying and selling of XRP on their systems and sometimes incentives for achieving volume metrics.”

If XRP is officially deemed a security, Lennon noted that the 10 exchanges cited by the lawsuit are likely to see the biggest risk.

Brad Garlinghouse, the CEO of Ripple, said he would “aggressively fight” and “prove our case” with co-founder Chris Larsen.

Garlinghouse emphasized that he has the option to individually settle with the SEC, but has decided not to take that route. Hence, the final court decision in the U.S. is needed to officially conclude whether XRP is or is not a security.

Some exchanges will likely halt trading in the foreseeable future until the formal court decision gets released. OSL, an over-the-counter and cryptocurrency exchange in Asia, said:

“In light of the U.S. Securities and Exchange Commission’s enforcement action against Ripple Labs Inc. and two of its executives, we have suspended all $XRP payment in and trading services on the OSL platform, effective immediately and until further notice.”

XRP price at risk

From a technical standpoint, traders say that XRP is in a “do or die” situation where it would have to bounce strongly at the current level at around $0.35 or face more downside.

Below $0.35, the chances of a bigger drop to early 2020 levels increase. Though a relief rally should also not be ruled out.

Alex Saunders, a cryptocurrency trader, said XRP remains risky for traders until the regulatory conflict with the SEC is resolved. He wrote:

“With a plethora of coins offering enormous upside. It’s ludicrous to emotionally attach yourself to $XRP now they are being sued by the SEC. Exchanges will be delisting & financial services industry won’t dare touch it until resolved. Good investors admit things changed & move on.”

The uncertainty around XRP has also been reflected by a spike in social media activity surrounding the cryptocurrency. At the same time, the sentiment around XRP has dropped to its second-lowest recorded level in history, according to data from TheTie.

 467 Interactions,  6 today

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Leave a Reply

Contact Us