Many of the cryptocurrency exchanges are delisted from trading their XRP token from this week. This happened due to the complaint made by the Securities & Exchange Commission where they accused the developer named Ripple Labs.
The platforms of finance and exchanges like OKCoin, Coinbase, and Crypto.com had made their public announcement about suspending the trading of the tokens. The Block has reported that Wiren, one of the crypto-payment companies, along with Ziglu, a particular app, has also taken the same decision of suspending the XRP token.
XRP Token Suffers Due To Ripple
The complaint made by SEC has alleged that Ripple has been effectually running an unregistered offering of a whopping $1.3 billion including the sales made by XRP. This was deemed as a security by the regulator but not as a cryptocurrency.
On Monday, OKCoin issued a statement stating that they had been closely observing the news regarding the SEC lawsuit on 22nd December against Ripple along with their 2 executives. As a result, they have decided on suspending the trade and deposits in OKCoin from January 2021 while the proceedings of the lawsuit are taking place.
Coinbase has stated that taking the SEC lawsuit into consideration, they decided to suspend the trading pairs of XRP from their platform.
Due to these suspensions, the tokens declined by 31% on 29th December and lost 75% value after they managed to reach the highest in 2 years at the beginning of November. On Thursday, this coin gained 23% after the low on Tuesday.
Michael Arrington, the founder of TechCrunch as well as a partner of XRP Capital, has stated that the coin will still be viable since it is not owned by Ripple. The lawsuit by SEC is aimed towards Ripple and not XRP token.
