Ripple’s XRP is going through a very difficult phase due to SEC’s lawsuit. Earlier today, Coinbase, one of the largest crypto exchanges, announced that it will suspend XRP trading from January 19, 2021.
The decision came after the SEC filed a $ 1.13 billion lawsuit for the sale of unregistered XRP securities.
Ripple’s XRP fell 20% to $ 0.22, with a market capitalization of $ 10.3 billion. The XRP price has lost more than 50% on the weekly charts and its southward journey does not stop steadily. With the most recent price drop, XRP has lost all of its gains over the past two months.
Surprisingly, XRP’s year-to-date returns have also turned negative after today’s decline. This makes XRP the only cryptocurrency in the top ten to have had negative returns in 2020 so far. Shortly after the Coinbase announcement, another popular crypto trading platform, Crypto.com, announced its absolute removal from XRP’s platform. The platform will continue to support the Spark (FLR) token distribution scheduled for the first half of 2021.
The big question that arises right now is whether other major exchanges will also remove XRP from their platforms. So far, two big giants: Bitstamp and Coinbase have announced their withdrawal. All eyes are on Binance right now. Ripple CEO Brad Garlinghouse has assured that the company will defend its stance against the SEC case with all possible force.
In addition, according to data provided by Messari’s OnChainFx, XRP fell below Litecoin after Coinbase’s announcement. It is worth noting that OnChainFx takes into account the liquid market value of the cryptocurrency, which is considered a more reliable methodology.
There is still a $ 2 billion gap between XRP and Litecoin on the leading cryptocurrency data site CoinMarketCap.