XRP price has crashed another 16% after the Bitstamp announcement as it slips below $0.30 today. While some of the Ripple partners have started distancing themselves from the company, a few XRP fans continue to offer strong support.
After the US Securities and Exchange Commission (SEC) sued Ripple earlier this week, Ripple partners have started weighing their association with the blockchain startup. In an update on Friday, December 25, crypto exchange Bitstamp announced that it is suspending all XRP trading and deposits. However, this is only limited to US customers. International Bitstamp customers can trade as normal.
The official announcement from Bitstamp reads:
“In light of the recent SEC filing against Ripple Labs Inc., which alleges that XRP is a security, we are going to halt all trading and deposits of XRP for our US customers on 8 January 2021 at 9 PM UTC. We will closely follow the unfolding situation and continue to adapt accordingly”.
Despite this, US customers can still withdraw their XRP during this suspension period. The US SEC has filed a lawsuit for raising $1.3 billion during its 2013 XRP ICO by selling unregistered securities. It also added that Ripple violated the federal securities laws by not informing the agency about the proceeds of the sale.
Bitstamp is not the first crypto exchange to distance itself from Ripple and suspend XRP services. One of the biggest crypto exchanges Coinase is also weighing out its possible relationship with Ripple.
The OSL exchange also made a similar announcement following the SEC lawsuit. Moreover, the Bitwise 10 Cryptocurrency Index liquidated nearly $10 million of its holding.
Ripple and XRP Fans Extend Support to the Company amid Issues with Bitstamp and Others
Soon after the SEC complaint, Ripple’s Japanese partner SBI Holdings said that it will provide unconditional support to the company. The Japanese banking giant noted that it will continue to use Ripple technology and XRP. Moreover, it also said that 90% of Ripple’s customers and 80% of remittance volumes come from outside the US.
Some of the other Ripple followers have also extended complete support to the company. You can read the complete thread below where a Ripple fan provides a complete analysis of the case.
Just finished reading the SEC v. Ripple Complaint — Most of the allegations in re. XRP being a security are built around the false idea that investors bought an asset that had no ‘use’ beyond speculative purposes.
This is exactly where their whole case cracks up.
— Arturo Portilla (@Arturo_P_A) December 25, 2020
The XRP price has been crashing soon after the SEC complaint was released. Over the last week, XRP has corrected more than 50% and has currently slipped below $0.30. At press time, XRP is 16% down trading at $0.29 with a market cap of $13.6 billion.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.