Coinbase talks about suspending trading in XRP cryptocurrency resulting in a 19% downfall in its price. The US virtual coin exchange plans to suspend trading because of the alleged charges faced by the company. The SEC (U.S. Securities and Exchange Commission) charged Ripple, a firm linked with XRP, for conduction around $1.3 billion in unregistered securities offerings. Though the company hasn’t taken it up as a mistake, it surely had a negative impact on the cryptocurrency.
XRP cryptocurrency’s downfall
XRP is currently the third-largest cryptocurrency in the world after Bitcoin and Ether. A piece of bad news and the prices tumble by around 20%. The third-biggest cryptocurrency in the world has seen a very bad day after Ripple was charged by the SEC. And now the currency is trading at $0.20, which is its lowest since July 2020. And not just that, after the charges filed by the SEC, the value of the currency has depreciated by over 50%. Coinbase plans to follow on with the SEC as the company plans to go public and might also become the first big crypto exchange to do so.
Talking about XRP, the currency’s trading will be limited from Monday onwards. And the trading will be completely stopped from 19th Jan 2021. The currency was in a good position before the news. I say this because, with Bitcoin, the prices of other cryptos were rising too. The rally was going on superb for XRP too, but now the currency is in one of its worst times. We might even see the trading of the currency completely stop on every other platform too.
Cryptocurrency might become a thing of the past or even mainstream. It totally depends on the way governments plan to regulate the digital asset. And one move will actually decide its future. What are your thoughts on the same? Do let us know in the comments below. Also, if you found our content informative and useful do like and share it with your friends.