Bitcoin

XRP price drops 24% in 24 hours as exchanges start delisting it

The price of XRP fell 41% versus Binance in the past three days when the US Securities and Exchange Commission filed a lawsuit against Ripple. As a result, several small exchanges have already stopped trading XRP.

So far, three small exchanges, like OSL, Beaxy and CrossTower have temporarily suspended trading or removed XRP from the list.

XRP (Coinbase) daily price chart. Source: TradingView.com

Other exchanges can delist XRP

According to prominent lawyers in the cryptocurrency industry, lExchanges that list XRP are at risk if the token is viewed as collateral.

XRP price drops 24% in 24 hours as exchanges start delisting it
XRP price drops 24% in 24 hours as exchanges start delisting it

Hailey Lennon, partner at Anderson Kill, said::

“Do you know who is at risk when XRP is considered a security? ANY EXCHANGE THAT LISTES XRP.”

SEC claims that Ripple is paying money to exchanges to enable “buying and selling XRP” on their platforms.

According to an official SEC complaint, Ripple has signed contracts with at least 10 digital asset trading platforms. The lawsuit says:

“In 2017 and 2018, Ripple also signed contracts with at least ten digital asset trading platforms, none of which were registered in any form with the SEC and at least two of which are headquartered in the U.S. Ripple paid these platforms a fee, typically in XRP, to allow the buying and selling of XRP in their systems, and sometimes incentives to provide a measure of XRP volume “.

When XRP is officially considered a securityLennon noticed that The 10 exchanges named in the lawsuit are likely to be the most at risk.

And I suspect they would start with these 10

Brad Garlinghouse, the CEO of Ripple, said he will “fight aggressively” and “prove our case” with co-founder Chris Larsen.

Garlinghouse stressed that You have the option to reach an individual settlement with the SEC, but have chosen not to go down that route. So, The final decision of the court in the United States is required to officially determine whether or not XRP is a security.

Some exchanges are likely to cease trading for the foreseeable future until the official court ruling is released.. OSL, an over-the-counter cryptocurrency exchange in Asia, said::

“Given the enforcement action taken by the US Securities and Exchange Commission against Ripple Labs Inc. and two of its executives, we have suspended all payment and trading services from $ XRP on the OSL platform with immediate effect and until further notice.”

The price of XRP is at risk

From a technical perspective, traders say that XRP is in a “do or die” situation that would have to jump hard to the current level around USD 0.35 or face another low.

Below $ 0.35, the chances of a further decline increase by early 2020. A relief rebound should also not be ruled out.

Ripple is in a ricochet or death situation and is flirting with the support of the cloud.

Alex Saunders, a cryptocurrency trader, said XRP poses a risk for traders until the regulatory dispute with the SEC is resolved. Wrote::

“With an abundance of coins that offer tremendous perks. It is ridiculous to get emotionally attached to $ XRP now that you are being sued by the SEC. The exchanges will remove you from the list and the financial services industry will not dare touching it until it is released. ” Good investors admit that things change and go on. “

After Ripple announced a new SEC lawsuit yesterday, #XRP tweet volume reached its highest level since January 5, 2018. Sentiment at XRP was the second lowest recorded by @TheTIEIO.

The most common words used in tweets about XRP include value, demand, and sale.

The uncertainty surrounding XRP has also resulted in an increase in social media activity related to the cryptocurrency.. At the same time, The mood around XRP has fallen to the second lowest level in its historyaccording to TheTie.

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