Grayscale sold all of its XRP stakes to buy bitcoin, ether and other crypto assets. In an announcement made earlier today, Grayscale made it known that the company sold all of its Digital Large Cap Fund XRP tokens.
Shades of gray sells all XRP holdings
There seems to be more pessimism for XRP, as Grayscale Investment announced that it sold all the XRP tokens it owned in its Digital Large Cap Fund.
That news comes days after a report saying that the grayscale bought a large number of XRP tokens for a much lower price. According to data from Cryptowhale, the company purchased more than 12 million XRP tokens on New Year’s Eve.
However, in what appears to be a turnaround in the decision by the leading crypto investment company, the company has now decided to fully liquidate all XRP stakes in the capitalization fund.
This decision may be linked to Genesis Global Trading, the sole authorized participant in the fund, which previously announced that it would suspend XRP trading on its platform. Genesis cited the impending lawsuit between Ripple and the Securities and Exchange Commission (SEC) to explain why it decided to stop trading active crypto as of January 15, 2020.
Grayscale did it known that the settlement proceeds were used to buy other crypto assets such as bitcoin (BTC), bitcoin cash (BCH) and litecoin (LTC).
The XRP token is still suffering the effects of the impending litigation against Ripple Labs
Since reports emerged that the U.S. SEC would sue Ripple, the regulator has claimed that the company was offering a $ 1.3 billion unregistered bond offering.
Due to this dispute, many crypto exchanges have begun to remove the token from their platform. Bitwise, Coinbase, Binance and a number of other major crypto exchanges have suspended or stopped trading the token on their platform altogether.
Another effect of the action is the drop in the price of active crypto since the emergence of legal issues. Since then, the price of XRP has dropped below $ 0.20, which is equivalent to a 70% drop.
Ripple promised to stand up against the SEC, noting that the allegations against it remain untrue and unfounded. The company also said it would continue to support its operations and products outside the United States.
What do you think of the grayscale sale of your Digital Large Cap Fund’s XRP holdings? Let us know what you think about this in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Legal notice: This article is for information purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damages or losses caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.