Ripple faces a potential disaster with XRP. Since the SEC announced that it would take action against Ripple, many of the company’s partners have dropped out, distanced themselves from XRP and partially withdrawn from the stock exchanges.
The SEC has brought proceedings against Profit Revolution and its initiators, Chris Larsen and Brad Garlinghouse, of selling an unregistered security and manipulating the market. This is no less than $ 1.3 billion.
Ripple and XRP are at the fore
The official SEC announcement has spread like wildfire in the community. As a result, the XRP price collapsed extremely and there is no end in sight. Since the peak at the end of November, the ripple price has plummeted by more than 70%. In the Bitcoin exchange pair even by more than 80%.
The sharp slump was mainly associated with various exchanges that have removed XRP from the program for certain regions or entirely. Yesterday, the largest American exchange – Coinbase – also announced that it would stop trading XRP for the time being . As a result, the ripple price collapsed even further.
It is currently not yet clear what will happen to Ripple and the two initiators. It may well be that a large fine has to be paid but XRP is not classified as a security.
On the other hand, there is still the risk that XRP will be classified as a security after all. Such a decision would not only be dramatic for the further price development, but also for Ripple itself. Because the company still lives from the regular sales of its own XRP. This would turn the SEC Ripple off the money.
Ripple about to end?
The XRP Ledger runs relatively independently of Ripple itself, but without the company behind it, with the various software solutions where XRP is used, the XRP Ledger will die in the long term or at least become more and more irrelevant.
Without Ripple and all the partners there is no need for a bridge currency that is highly volatile, depends on the Bitcoin rate, is largely in the hands of a company and was created at the push of a button. We already have more than enough of such cryptocurrencies and none of them represent a revolution or the like.
The dream of a global means of payment or a bridge currency for international payments is currently off the table. There is little hope that the tide will turn for Ripple anytime soon.
In addition, one of Ripple’s most important partners – MoneyGram – has distanced itself from Ripple and XRP .
At the moment one can only wait and warn all investors. There is currently little hope of a swift recovery. The process could take weeks or months and drive the price down further and further.
As always, we will keep you up to date and inform you immediately as soon as there is anything new in relation to the process.