Coinbase, the Largest US Exchange, Will Suspend XRP Trading
On Dec 29, 2020
Critical news against Ripple continues to come one by one. Most recently, Coinbase announced that it has suspended all transactions of XRP on the cryptocurrency exchange.
Things didn’t work out for XRP after the US Securities and Exchange Commission (SEC) accused Ripple of selling unregistered securities. Many reputable cryptocurrency exchanges have published news of stopping or suspending transactions. The reputable exchange Coinbase was recently included in the list of these exchanges. According to the announcement of Coinbase, some XRP trades are already restricted, and the full suspension will begin on January 19, 2021.
Once the suspension is in place, people will no longer be able to trade XRP on Coinbase. But, they will have no problem being able to deposit and withdraw funds from their XRP wallet through the Coinbase wallet.
Coinbase joins the list of cryptocurrency exchanges that have suspended XRP trading after Bitstamp, Beaxy, CrossTower, OKCoin, and OSL. Coinbase has attracted a lot of attention as being the highest-profile exchange to suspend XRP. Despite the headlines, XRP is still traded on Binance, Kraken, and Huobi.
Given the SEC’s recent action against Ripple, all XRP books have been moved to limit only and Coinbase plans to fully suspend trading in XRP on Tuesday, January 19, 2021, at 10 AM PST. Afterwards, users will continue to retain access to their XRP funds. https://t.co/izreZvgHNl
— Coinbase (@coinbase) December 28, 2020
Since the Lawsuit, Things Haven’t Been Going Well
The SEC filed a lawsuit against Ripple and its CEO, Brad Garlinghouse, and co-founder Chris Larsen for selling $ 1.3 billion of unrecorded securities through XRP. According to the SEC filing, they “abetted Ripple’s violations.” Ripple CEO Brad Garlinghouse denied the allegations. “The SEC is fundamentally wrong as a matter of law and fact,” he said in a prepared statement. Brad Garlinghouse claims that XRP is a currency, not an investment contract. Therefore, Ripple shouldn’t have to register with the SEC before selling the XRP. Shortly after the news, an extensive list of crypto exchanges stopped listing the XRP token. Ripple makes seasonal sales with 55 billion XRP in its escrow wallets to keep the price of XRP afloat.
XRP Price Dropped Sharply With Coinbase’s Announcement
The SEC case put negative pressure on the XRP price performance. The Coinbase news then dropped prices even lower. The fourth cryptocurrency by market cap fell from $ 0.30 to $ 0.224 in a short time. XRP, which lost more than 25 % in value, is currently trading around $ 0.21. The SEC’s lawsuit against Ripple caused the price of XRP to drop by nearly 52 %. It seems that losing the support of major exchanges like Coinbase may not be good for Ripple in the short term.