XRP Price Took a Sharp Downturn After Coinbase Announced to Suspend Trading

December 29, 2020 3:29 PM UTC

Coinbase, the fourth-largest cryptocurrency exchange in terms of market cap, announced to suspend trading for XRP in response to the recent United States Securities and Exchange Commission lawsuit. 

Joining the league of crypto exchanges that have suspended trading of XRP, Coinbase becomes the latest exchange to suspend trading for XRP after Bitstamp, Beaxy, CrossTower, OKCoin, and OSL. Based on the market report, Binance, Kraken, and Huobi still offer XRP deposit and withdrawal services.

Coinbase noted in an announcement, “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. Afterward, users will continue to retain access to their XRP funds.” 

XRP Price Falls as SEC Filed Lawsuit

The lawsuit affirms that Ripple has raised unregistered securities offerings of almost $1.3 billion. During a press release, the US Securities and Exchange Commission noted, “Ripple engaged in this illegal securities offering from 2013 to the present, even though Ripple received legal advice as early as 2012 that under certain circumstances XRP could be considered an ‘investment contract’ and therefore security under the federal securities laws.”

While responding to the allegations Ripple said, This is an attack on the entire crypto industry and American innovation. By giving the stamp of approval only to Bitcoin and Ether (whose networks are at the mercy of the Chinese Communist Party), the SEC has picked the winner s- disregarding an entire industry outside of these two tokens.”

After Coinbase suspended the trading of the coin, the price of XRP has fallen to a level recorded in July 2020. According to data from metrics site CoinMarketCap, XRP has fallen by 31% in the past 24 hours to hit below $0.2.

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