After the filing of the US SEC lawsuit in a Manhattan court on Wednesday alleging that Ripple raised $1.3 billion in unregistered securities offerings since 2013, the firm is now fighting for its life as some small crypto exchanges are removing Ripple coin XRP from their platforms. According to some reports, Ripple may face another setback as one of the largest cryptocurrency exchange Coinbase is also considering its option regarding XRP future on its platform.
A lot of unpleasant events are happening for XRP in the crypto industry. According to the experts, this SEC lawsuit could prove lethal for XRP. In a publication, Forbes cited Frances Coppola, a financial analyst, and commentator who has publicly criticized the company and the XRP token in the past believes that it is “the beginning of the end.”
This seems true at the moment as one of its key partners, Global money transfer service MoneyGram, has distanced from Ripple by saying that it has never utilized Ripple’s counterparty services, like On-Demand Liquidity (ODL) and RippleNet, for forex transactions. MoneyGram, in a statement, said:
“As a reminder, MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action.”
Some smaller exchanges like CrossTower, Beaxy, and OSL, have either temporarily suspended XRP trading or removed it entirely. But the major setback is around the corner as according to some sources, Coinbase is also brainstorming about the future of XRP on its platform. If Coinbase delists XRP, this would be a lethal blow to XRP as other big names like Binance could also follow.
Amid the SEC Ripple fight, investors are already dumping XRP as quickly as possible. Bitwise Asset Management, a leading crypto fund manager, announced on Wednesday, December 23, that it had liquidated its position in XRP. Bitwise stated:
“Prior to the sale of the asset on December 22, 2020, XRP was approximately 3.8% of the Fund. The Fund liquidated its position and reinvested the proceeds in other portfolio assets.”
The news of SEC court action also exerted negative pressure on the XRP price action. The coin crashed over 30% on Wednesday. But in the last 24-hours price action, XRP has increased by 24%. Experts are saying that conditions could get much worse for Ripple, depending on how the SEC’s new management decides to proceed with the case.
Things are not looking good for Ripple but CEO Brad Garlinghouse is confident that they will come out of this dark patch unharmed. In a note sent to his employees and lawyers, He said:
“The SEC is completely wrong on the facts and law and we are confident we will ultimately prevail before a neutral fact-finder.”
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