XRP price fell well below $ 0.3 on December 24th, reaching $ 0.2138 on Binance. Selling pressure on XRP has increased following the high-level lawsuit filed by the US Securities and Exchange Commission against Ripple.
There are three main factors that explain the sharp drop in the price of XRP, namely demand from the SEC, which is likely to be delisted by exchanges, and the deterioration in market sentiment.
According to one investor, Ripple’s demand is worse than that of EOS and Kik
This isn’t the SEC’s first high-level lawsuit or settlement with a blockchain firm or token.
EOS and Kik have resigned themselves to the SEC, and according to Adam Cochran of Cinnemhain Ventures, they were viewed as securities violations at the point of sale.
Regarding XRP, Cochran emphasized that the SEC claims the cryptocurrency continues to violate the Securities Act. Said:
“In contrast to Kin and EOS, where the SEC claimed that the violations of the securities only took place at the point of sale, the SEC claims here that XRP MAYBE is violating the Securities Act today. That said, they believe it is currently a security, hence the reactions of the exchanges. “
Several lawyers also noted that the documents cited in the lawsuit may make it difficult for Ripple to plead ignorance. Hence, the claim becomes more complex for Ripple.considering CEO Brad Garlinghouse said he would fight. Cochran said::
“You have multiple points of evidence for document centralization, recognition of security issues, and written sales practices. There is no place here where ignorance / stupidity can be invoked. You have personally named executives in charge of what the SEC does when they take a fatal shot. This is far more common in fraud than in general securities lawsuits. “
Exchanges delist the token
Cochran explained that too Some sources suggested that Coinbase had talks with attorneys about removing XRP from its list.
Exchanges don’t have to remove XRP from their lists just yet. However, If the court declares this to be security, the exchanges could face various risks and be forced to preventively withdraw the token. Cochran wrote::
According to sources, Coinbase has already had discussions with the attorney about removing XRP from its list. It appears that two potential plans are forming, one of which will result in the token being delisted on Friday. It is not clear which Coinbase products will have an impact, but most likely Coinbase and Pro. “
The mood on social media is getting worse
Santiment’s data shows that social media sentiment surrounding Ripple has deteriorated significantly.
According to Santiment Social media discussions about cryptocurrencies continue to be dominated by XRP and the SEC lawsuit. Santiment analysts they said::
“The major topics discussed today are dominated by XRP and Ripple as the SEC accused the company of selling securities.”
The binding data shows that too Daily sentiment fell to its second lowest level this week, while tweet volume climbed to record highs.
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