It has been a very torrid time for Ripple Inc following the lawsuit leveled against its CEO Brad Garlinghouse and Ex-President Chris Larsen by the United States Security Exchange Commission (US SEC) for benefiting close to $600 million from unregistered transactions made by some highly-rated XRP users.
The legal charge, which was completed in December 2020, has forced many digital exchange platforms to stop rendering support for XRP founded by Ripple Inc. Two US-based exchange platforms, CrossTower and Beaxy, were first to drop the XRP digital asset from its listing, claiming they had no option but to take such decision until the case is completely resolved.
More exchange firms drop XRP from their list following SEC’s lawsuit
More firms decided to take the same step by dropping XRP from the digital assets available to users. Binance and Coinbase became the third and fourth companies to announced their willingness to stop their respective users from trading in XRP until Ripple Inc is cleared of all wrongdoings. Bit.com and Kraken were the latest pair to make such a move citing the same reason for their decision. The move is having a very negative impact on XRP performance in the market.
The digital currency has since witnessed a massive 50% decrease in its market value as it currently stays at a valuation of just $0.28 per coin. That is not all; the cryptocurrency has equally fallen down the pecking order in the list of the world’s most considerable digital assets. Having enjoyed a large spell as the world’s third-largest cryptocurrency before the lawsuit, XRP currently occupies the fifth position following Tether and Polkadot’s impressive rise to stardom. What does the future hold for XRP?
Phil Liu believes XRP might be a remnant of history
Having taken a close look at the XRP’s market valuation and constant lack of support from the exchange platform, Phil Liu is confident the cryptocurrency might become a remnant of history. Liu, the co-founded new York-based digital asset exchange firm Arca, predicts a very tough year for XRP, claiming the Ripple firm could be insolvent in the next few months might go bankrupt.
In his remarks, the company solely depends on XRP sales as a source of revenue. Hence, it might be challenging to settle most of its debt following the decreasing number of XRP investors. Lui, who doubles as a securities lawyer, believes the US SEC’s allegation is a compelling one because all crypto investors and analysts are keenly interested to see how it ends.
However, he claimed that the only way out for Ripple firm is to leave the country’s shores and start afresh. According to him, the company would be willing to let go of users and XRP market value because attained in the United States. In the same vein, Ripple’s lawyer Andrew Ceresney believes the lawsuit has a severe effect on XRP and the company at large.