Ripple and its own token XRP are going through tough times. The general opinion that emerged in this process; The fact that XRP investors also suffered great damage, despite being innocent.
Although this collapse covers a short period of a few months, it is actually much longer. XRP’s market cap has dropped by almost $ 130 billion since its all-time high in 2018. This was a massive drop, and the fall of the cryptocurrency project necessarily made it comparable to the collapse of major financial institutions.
The project is experiencing a collapse similar to some of the biggest institutional scandals and disasters in recent history, according to Josh Frank of crypto-focused research firm The TIE. Frank used the following statements in his statement on the subject:
“MARKET VALUE OF XRP DROPPED 93% FROM 137 BILLION DOLLAR TO GOLD 10 BILLION DOLLAR. THIS MAKES THE VALUE OF XRP BIGGER THAN ENRON AND WORLDCOM. THE THIRD BIGGEST COLLAPSE OF ALL TIME, AFTER XRP, LEHMAN BROTHERS AND WASHINGTON MUTUAL, ALTHOUGH NOT INSURANCE. ”
When the market value of XRP peaked, it was about $ 140 billion in January 2018. It recently fell below $ 10 billion, and in less than three years there was a massive loss of an estimated $ 130 billion. This is driving the “collapse” of XRP, following Washington Mutual’s $ 327 billion bankruptcy and investment giant Lehman Brothers’s $ 691 billion financial collapse in 2008.
Biggest Losing Individual Investors
“It is sad and unfortunate that the biggest losers in the [XRP] saga are individual investors who have lost an unimaginable amount of money,” Frank also told Cointelegraph news site. used the expressions. As we said at the beginning, the crypto community generally thinks that its investors are the biggest losers in the XRP “collapse”.
US Securities and Exchange Commissions; The token price plummeted after Ripple accused its CEO Brad Garlinghouse and co-founder Chris Larsen of executing an “unregistered, ongoing digital asset securities offer” for XRP sales. Many crypto exchanges and fund providers, including Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy and CrossTower, reported that they will suspend trading for XRP or remove the token entirely.
Institutional players have also started to move away from XRP. Grayscale Investments’ website now states that “XRP Trust private placement is currently closed,” and the firm will no longer process pending applications for XRP Trust, according to new claims.