Dark Cloud Over Ripple Inc as Big Market Players Continues to Dump XRP
January 15, 2021 5:13 AM
Ripple Inc. Has come under scrutiny after the U.S Security and Exchange Commission declared its intention to file a lawsuit against Ripple, stating XRP might be unregistered securities.
On December 22, the U.S Security and Exchange Commission (SEC) announced that it has decided to file a federal court action against certain third parties asserting that XRP is a security under the federal securities law.
The SEC complaint accused Ripple of effectively running a $1.3 billion unregistered offering with its sales of XRP, which the regulator deemed a security and not a cryptocurrency.
The dark cloud hovering over Ripple Inc has resulted in XRP market value to constantly stumble in response to SECs lawsuit, in response to SEC action major market players have continued dumping XRP as the list grows longer.
Leading Digital investment company Grayscale investment is the latest major major market player to dump XRP after it stated intent to Liquidate its XRP Trust citing difficulties in the conversion of Ripple to US Dollar, Grayscale explained further that it has liquidated it's XRP Trust and will distribute the net cash proceeds to trust shareholders.
Major Exchange and finance platforms such as Coinbase, Crypto.com, OkCoin, Wirex among others said they were suspending trading of XPR token reacting immediately in response to the unknown SECs action against third parties who supported XRP.