On Wednesday, the third-largest cryptocurrency after Bitcoin and Ethereum, XRP or Ripple, extended its losses, facing off an upscaled cataclysm leading to an ease-off of roughly a-fifth of its valuation, after Coinbase, a US-based major virtual coin exchange had told that it would suspend trading of the digital currency.
In tandem, during preparation of this report, GMT. 20.00, XRP was trading 2 per cent lower after plunging as much as 19 per cent yesterday, as the California-based crypto exchange Coinbase had been quoted saying in a statement on Monday that it would suspend trading activities of XRP following a US SEC (Securities and Exchange Commission) lawsuit that accused an XRP-linked blockchain firm Ripple of issuing $1.3 billion worth of unregistered digital assets.
Nonetheless, Ripple had denied the charges saying that XRP was a currency and it would not be necessarily required to registered as an investment contract, nonetheless, Ripple’s riposte to the allegation would unlikely to make an impact, suggested analysts.
XRP slumped over 20% in two days to 20 cents, lowest since July
More importantly, latest move from Coinbase to stall trading of Ripple, leading to a ludicrous lash-out in XRP or Ripple valuations, came forth as the Californian cryptocurrency broker Coinbase was reportedly preparing for a US public market listing, while if approved, Coinbase would be the first crypto exchange in the United States listed in NYSE.
Aside from that, Coinbase said at its statement issued earlier this week that trading activities in Ripple or XRP had been curbed out since Monday and would be fully suspended on January 19, 2021. Nonetheless, XRP, that often moves alongside the original cryptocurrency Bitcoin, and torrented to its highest level in more than two years last month, was last down by 18.7 per cent to 21 cents.
If truth is to be told, a flurry of financial regulators alongside Central Banks across the globe are still trying to figure out on how they should respond to regulate cryptocurrencies or digital assets.