XRP plummeted 10% in minutes. Blame Coinbase
CONTENT

  • Coinbase suspends XRP token trading

  • Exchange cites Ripple’s legal issues

  • XRP rate reacted to the news with a rapid fall

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Coinbase, the largest cryptocurrency exchange in the United States, sent XRP to a steep peak, announcing the upcoming suspension of coin trading

Coinbase will suspend trading in cryptocurrency XRP from January 19, 2021. This was reported in the official blog of the company. Thus, the exchange will join the growing list of trading platforms getting rid of the coin of the disgraced fintech startup Ripple..

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Trading will be completely stopped on January 19, 2021 at 10 a.m. PST (Jan 18, 11 p.m. EST), however, partial restrictions will be introduced starting December 28, 2020 at 2:30 p.m. PST (December 29, 01:30 EST).

XRP plummeted 10% in minutes. Blame Coinbase

The functionality of XRP wallets and access to them will remain in full. The company promises to inform customers of all changes through the Coinbase Support Twitter account.

Earlier, the editorial staff of BeInCrypto reported that, according to information from unofficial sources, the company’s lawyers are studying the issue and possible scenarios. Ultimately, the decision was not in favor of XRP.

According to Paul Graval, legal counsel for Coinbase, the reason for the restrictions was a lawsuit by the Securities and Exchange Commission (SEC) against Ripple and its directors..

If the SEC wins the case, exchanges offering XRP trading and not licensed by the regulator to trade in securities will face unpleasant consequences, including legal action.

Bitcoin Trading for Beginners (A Guide in Plain English)

However, if Ripple can prove that XRP is not a security, most platforms, including Coinbase, will return the coin to the listing..

XRP went into a steep dive

Coinbase’s decision was a powerful blow to XRP, which was trying to gain a foothold above the psychologically significant $ 0.30 mark. The token rate fell by more than 10% in a matter of minutes and continued to fall to $ 0.21. As of this writing, the coin is trading at $ 0.23, down 18% on a daily basis. Over the past seven days XRP has fallen in price by more than 50%.

XRP Chart Source TradingView

Read about the essence of the SEC’s claims against Ripple and how this litigation threatens the cryptocurrency industry in our review..

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