The XRP dumping rumor went on for a long in early January, when the investment company, Grayscale, rejected the claim concerning the digital asset’s dumping. Grayscale made a public announcement to get rid of all its XRP holding, probably due to the legal implications of holding the asset. Ripple faces new problems since it no longer has support from Grayscale linked to the SEC lawsuit.
The Securities and Exchange Commission explained that its case was essential to protect XRP investors’ rights since the fintech company allegedly refused to register the asset as a security to prevent certain liabilities. Ironically, investors are the biggest losers of the legal battles against the two bodies. Now, XRP markets in the US are selling off their holdings before it crashes. Some exchanges delisted the digital currency because of the legality problems in America.
Grayscale to sell-off all XRPs
Many XRP investors showed their displeasure with the investment giant’s plan to sell off all its XRP holdings due to its under performance and current legal battles. With the sale, the company will purchase other significant assets like Bitcoin, Bitcoin Cash, and Ethereum.
The business recently shared its continuous BTC purchases, making it one of the biggest institutional buyers making a 2021 buy. Most investors cashed on the $42,000 peak, while others went bearish, anticipating a more astonishing win. XRP, which people mostly use for cross-border payments, continue to decline, causing problems for clients who utilize it.
The firm recently had an asset review that XRP, unfortunately, did not qualify for, leading to its sales. The business explained that money from the sales would help the company expand its holdings in major cryptocurrencies like LTC, BCH, BTC, and ETH.
Grayscale also added that only the four assets qualified, meaning that it would not add any other crypto to its platform for investment. The business shared that XRP formerly held 2% of its total fund, with Bitcoin taking the most with 80%, Ethereum with 15%, Litecoin and Bitcoin Cash with the lowest, a combined 3%.
Other platforms announce the delisting of XRP
Early this week, Kraken announced its stance on the digital currency, delisting it for America only. Additionally, the firm shared that its US holders could still keep and deposits their XRP holdings even with new restrictions.
However, it clarified that American citizens could not trade the assets to prevent breaking regulations put out for exchanges. Now, the management company announced a complete delisting, with all holdings sold till further notice.
Due to the issue’s technicality, even experts cannot tell what would end the accusations against the fintech company. The company’s executives will appear in court by next month still on its illegal sales problems.
More news concerning Grayscale describes the firm’s iconic feat of reaching $20 billion worth of assets under its management. The unexpected rise in crypto prices made this possible, with significant currencies doubling their values quickly. The new reach could attract more significant investments with hopes of similar returns.