The Fall of Ripple (XRP)

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Written by

I am Nobody

3 years ago

Topics: Cryptocurrency, Cryptocurrencies, Investing, Blockchain, Crypto, ...

The rank #3 cryptocurrency Ripple (XRP) is now facing the biggest problem they ever had. Many investors have invested in XRP in the hope that XRP/SPARK fork will succeed and they can get the same amount of SPARK token as the amount of XRP they have on their wallet.

After the fork, Ripple pushed the limits of $0.75 in a short time that makes the investors happy. However, the joy was just short lived when the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Lab Inc. and two of their executives, Brad Garlinghouse and Christian Larsen. It took a heavy blow to the XRP community.

According to the complaint, Ripple Labs “raised over $1.3 billion through an unregistered digital asset securities offering.” The lawsuit also stated that the two founders did not report the sale of personal Ripple savings of around $ 600 million and it emphasized that XRP is only a subject of business and market creation activities.

Since the the SEC announcement, the XRP price drastically drops like a rock, losing almost 40% within 24 hours of the trading sessions. The XRP plunge also grabbed other cryptocurrencies down on December 23 trading sessions.

Some exchanges like Jump Trading and Galaxy Digital stopped supporting XRP. These two have a significant impact on the market. Meanwhile, a crypto asset manager Bitwise liquidated the XRP position of the crypto index fund. Other crypto exchanges including OSL, CrossTower, and Beaxy, also stopped supporting XRP. And one of the biggest exchanges, Coinbase, is expecting to have a delist.

Naeem Master, Beaxy’s Head of Operations stated:

The XRP may crash but not the other cryptocurrencies.

Despite the lawsuit against Ripple Labs, Bitcoin (BTC) has been doing well. On December 23, the stats show that BTC has gained more than 11% and over 29% for the 30 days 120% over the last three months of trading. At the time of writing, BTC captures a $461 billion market cap and even reached its all-time high price of $25,000 on December 26.

Other big cryptocurrencies like ETH and BCH were also down during the trading sessions on Wednesday, but eventually recovers and now making up their losses. At the time of writing, the BCH price is up to $318 with a market cap of $5 billion, while the ETH price is $627 with a market cap of $71 billion.

The XRP price has somewhat recovered from $0.21 on December 24 to $0.38 on December 25. As of today, it decreases 9.10% on its trading sessions with the price of $0.31 and ranked #4 on CoinMarketCap.

But how long will they stay on the list? Will the Ripple Labs be able to survive and recovers?

Ripple CEO Brad Garlinghouse comments;