XRP token has begun to bear the brunt of the much controversial and talked about US SEC Lawsuit filed against Ripple a few days ago. While the company attracted much ire from the cryptocurrency industry for its defensive stance, the real consequences have started to show now.
Major cryptocurrency exchanges have delisted XRP tokens for trading, alienating them from Ripple.
XRP Price Plummets as Exchanges Delist
The United States Securities and Exchanges Commission filed a lawsuit against Ripple for running unregistered securities in the country, which impacted the price of the token badly. Just yesterday, the Co-founder of Ethereum called out the Ripple team for addressing Bitcoin and Ether as ‘Chinese controlled cryptocurrencies.’
Now four crypto trading firms have stopped XRP trading on their platforms. Bitwise Assets Management, OSL, Cross tower, and Beaxy are the exchanges that have halted the trading and any activities related to XRP. The price of the XRP token plummeted badly by a whopping 41 percent on the Binance exchange after the lawsuit was announced.
The exchanges have bid adieu to XRP token to avoid any action from the US regulatory authorities, which are speculating XRP token for legal compliance over the trading of unregistered securities. There has been quite a furor among the US regulators who have called out for considering XRP as a Security, while Ripple affirms that XRP is an open-source digital asset.
As per SEC, “Ripple pays exchanges to sell and buy XRP tokens on the platforms which Ripple paid these platforms a fee, typically in XRP, to permit the buying and selling of XRP on their systems and sometimes incentives for achieving volume metrics.”
The law experts opine that the exchanges listing XRP may have problems if the Ripple token is considered a security.
Bitwise Assets Management was quick to announce delisting XRP and liquidated the XRP tokens in its Index Fund. The Bitwise Index fund aid that they do not invest the cryptocurrencies, which are considered as Security by any government law. The company firmly liquidated its XRP since the SEC Lawsuit considers XRP as a security.
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