The price of Ripple’s XRP dropped to $ 0.2138 on Binance, with three key factors pulling the cryptocurrency down.XRP price plummeted below $ 0.3 on Dec. 24 and dropped to $ 0.2138 on Binance. Selling pressure on XRP intensified after the SEC filed.
There are three main factors behind XRP’s sharp price drop:
SEC case, de-listing on exchanges and worsening market sentiment.
Investor: Ripple Case Looks Worse Than EOS and Kik
This is not the first high-profile lawsuit or deal the SEC has made with a blockchain firm or token. EOS and Kik signed with the SEC and, according to Adam Cochran of Cinnemhain Ventures, these were considered security breaches in the sales department.
Regarding XRP, Cochran highlighted that the SEC claims that the cryptocurrency is still violating the securities law. Several lawyers similarly said that Ripple could fight to defend ignorance because of the documents cited in the case. For Ripple, we can say that the case is getting more and more complicated. Cochran spoke about the case as follows:
“There are multiple documentation points for proof of centralization, acceptance of securities issues, and written sales practices. they called the managers personally responsible, sec does this when they go to the kill shot. this is much more common in fraud activity than in general securities action. ”
Cochran also said about the removal of XRP from exchanges, that the cryptocurrency does not have to be withdrawn yet, and pointed out that it is important to declare collateral by the court.
In addition, according to the data from Santiment, social media sensitivity regarding Ripple has also decreased significantly. This stood out as another reason for XRP’s decline.