The great escape from XRP continues, the native currency of Ripple that is serving on the market the lawsuit brought by the SEC - the US body responsible for the supervision of the stock exchange - to the Californian fintech.
As noted, the agency led by Jay Clayton has accused the Ripple board of violating the rules that prohibit the sale of unregistered securities. The company's top management, in response, continued to deny the need to register digital currencies as investment contracts.
But pending the outcome of the quote, the market has already issued its verdict: the progressive move away from XRP of the platforms that deal with cryptocurrencies has helped to deflate the price of the virtual currency, in negative territory by 44.2% in the last week. .
XRP peaks after SEC lawsuit against Ripple
Every man for himself. As XRP plummets to $ 0.28, major US and European exchanges have begun to abandon ship, in an effort not to get caught up in the legal aftermath that could result from the SEC's lawsuit against Ripple.
A leak that also confirms the deterrent capacity of the US agency, which has recently already won some high-profile lawsuits against the start-ups Block.one and Kik. But, this time around, the market started to reposition itself even before the ruling.
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A general demobilization that had been anticipated by CrossTower, a US trading platform, a few hours after the first rumors leaked by the Ripple board on a possible SEC lawsuit, and continued later with the delisting of XRP by OSL and Beaxy.
A step backwards on cryptocurrency was also recorded in the last few hours by B2C2, the exchange bought by the Japanese of SBI Holdings in early December. This was a fatal blow, since the Japanese company had been one of the main investors of Ripple, with which they had also started a joint-venture project in Japan.
Instead, COINBASE and BINANCE platforms remain in the saddle, while other exchanges are blocking trading on XRP only for US operators. All operations on the virtual currency have instead been shut down by Simplex and Bitwise, pending further developments that can strengthen the credibility of the cryptocurrency.
It is unlikely, for now, that the decline in the digital currency can stop. Ripple, which owns 55 of the 100 billion XRPs currently on the crypto market in its portfolio, may decide to investigate the hypothesis of a relocation of headquarters outside the US borders to escape the clutches of the SEC.
As already mentioned in recent months by the CEO of fintech, Brian Garlinghouse, the United Kingdom, Switzerland, Singapore, Japan and the United Arab Emirates are the main destinations that would be examined in the event of a further deterioration in relations with the US authorities.
