Ripple cryptocurrency (XRP) is sinking. 63% decrease in a month

Next giełda kryptowalut joined the group of those that had already suspended trade Ripple (XRP). This is the result of a lawsuit filed by United States Securities and Exchange Commission against Ripple Labs. SEC says the company raised 1,3 billion. USD by selling securities without registration. Ripple's lawyers and managers cannot believe: "After all, cryptocurrencies are not securities!"

Last week, the Coinbase exchange announced the information about the suspension of XRP trading. 

"Given the SEC's recent action against Ripple, all XRP ledgers have so far been limited to limit orders only, and Coinbase plans to completely suspend XRP trading on Tuesday, January 19, 2021 at 10.00. Users will still have access to their XRP funds " - we read in the Coinbase release.

This is another cryptocurrency exchange that restricts or suspends Ripple trading. Previously, it was done by OK Coin, Bitstamp, Beaxy, Cross Tower, OSL. You will not be able to deposit or trade XRP at Bitstamp from January 8, 2021. Cooperation with Ripple is also suspended by funds and companies from the industry blockchain. Among them, such big players as Jump Trading, Galaxy Digital, Bitwise or B2CX.

Christmas lawsuit, $ 20 billion is disappearing from the market

Brad Garlinghouse, CEO of Ripple

Where does all this fuss come from? Just ahead of Christmas Eve, Ripple CEO Brad Garlinghouse told Fortune and Wall Street Journal reporters the SEC plans to sue Ripple for offering unlicensed securities.

At the turn of November and December, Ripple was the third cryptocurrency in terms of capitalization, worth a total of 30 billion. USD. Since then - after a 63% drop in the last month - almost $ 20 billion has evaporated from the market! Worth $ 29.12.2020 billion as of December 10,5, 0,24, Ripple fell to fourth place and costs $ XNUMX. But there is no need to panic, because this is the level of last year's values.

Cryptocurrency is not an investment agreement

Before Christmas, we could read in the Wall Street Journal that the SEC lawsuit is about to appear in the federal district court. And that's how it happened. Moreover, the Commission also sued the co-founder of Ripple Christian Larsen and the chairman of the board of directors Brad Garlinghouse, writing, inter alia, that they "incited violations committed by Ripple". 

Ripple is not going to give up, however. In the statement published soon after the announcement of the information, we read:

“The SEC is fundamentally wrong on the law and the facts. XRP is a currency and does not need to be registered as an investment agreement. In fact, the Department of Justice and the Treasury's FinCEN had already agreed in 2015 that XRP was a virtual currency, and other G20 regulators did the same. No other country has classified XRP as a security. '

Interestingly, the XRP token issued by Ripple has been in operation since 2012. So where did the lawsuit come from now? Ripple owns 6,4 billion. XRP tokens, but from time to time he also sells subsequent tranches from the escrow account, which has another 55 billion. units. According to the SEC, this is nothing more than an unregistered sale of securities. It had caused mixed feelings in the community before. But that's what Ripple's CEO refers to.

“The SEC has allowed XRP to function as a currency for over eight years. We therefore question the motivation to bring this complaint a few days before the change in administration [i.e. the swearing in of the new US president - ed. ed.]. Instead of presenting a clear regulatory framework for US cryptocurrencies, Jay Clayton [SEC President - ed. Ed.] he inexplicably decided to sue Ripple - leaving the actual work to the next administration. It is an attack on the entire cryptocurrency industry and American innovation. I think we need to stand up for all cryptocurrencies and not let the SEC torture the entire industry. We will be on the right side of history " - Brad Garlinghouse from Ripple prominently announces.

Ripple Chart (XRP), D1 interval. Source: xNUMX XTB.