Ripple’s difficult days got even worse. After the fintech company was the subject of a SEC lawsuit over its XRP symbol last week, Coinbase announced in a blog post on Tuesday that Ripple’s trades would be suspended on its platform.
According to the blog, Ripple fans can continue to exchange the token in a limited capacity until the XRP suspension takes effect on January 19. Coinbase noted that this would not prevent customers from accessing their XRP wallets, nor would it prevent them from using those same wallets for their day-to-day deposits and withdrawals.
Getting boot from the biggest the digital exchange in the country is a very serious rejection – and aggravated by previous prohibitions of OKCoin and Bitstamp, two medium-sized stock exchanges that cut ties immediately after the SEC lawsuit. The XRP value on the Coinbase website was in a free fall last week, losing more than half of the valuation it held before the SEC fight came to light.
For those in need of an update, the SEC’s main claim was that Ripple had spent the past seven years selling XRP as a currency, when, in fact, it should have been classified as security at all times, and subject to the types of public disclosure to investors that are required of the securities so that investors can assess the risks involved. The SEC claimed that in the past seven years that Ripple’s investors were kept in the dark, the company raised “at least” $ 1.38 billion and continued to use those funds to fuel its business operation “without revealing how it was doing. doing this, “the SEC declared.
In response to these accusations, Ripple CEO Brad Garlinghouse, initially defended The XRP’s currency title in a series of tweets before turning into a conspiratorial diatribe that claimed – among other things – that the Chinese government had some kind of control over bitcoin and ether cryptocurrencies. We’ve contacted Ripple for comment and will update if we receive a response.
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