Clearly a bad end of the year for Ripple following the lawsuit filed by the SEC for illegal sale of XRP tokens, US crypto trading giant Coinbase has decided to stop trading the XRP token!
With more than 35 million users worldwide, any decision by Coinbase to list or delist a cryptocurrency has serious consequences, the Ripple price pays the price and fell again to 0.22 dollar on Binance, Kraken and Coinbase!
The crypto trading platform Coinbase has indeed announced that it will completely stop trading the XRP token on January 19, 2021, due to the lawsuit filed by the SEC against the company Ripple.
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform.
Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time.
We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing. The trading suspension will not affect customers’ access to XRP wallets which will remain available for deposit and withdraw functionality after the trading suspension.
Further, customers will remain eligible for the previously announced Spark airdrop (subject to approval in certain jurisdictions), and we will continue to support XRP on Coinbase Custody and Coinbase Wallet.”
XRP trading is therefore simply suspended, Coinbase customers can leave their XRP tokens on the platform and in their Coinbase crypto wallet.
Due to the lawsuit between Ripple and the SEC, Coinbase prefers to take the lead and protect itself in the event that the XRP token is indeed declared to be a security of the Ripple company and not a commodity like Bitcoin BTC can be.
A decision that would have serious consequences for Ripple as well as for companies that trade XRP tokens such as Coinbase.
Coinbase will wait like others for the decision of the American justice which will have to rule in order to confirm or deny the allegations of the SEC which has already sentenced many blockchain and ICO projects.
EOS had thus paid $24 million for its ICO deemed illegal, the EOS blockchain project had raised $4 billion!
Ripple is accused of raising $1.3 billion through the sale of XRP tokens.
Crypto exchange OKCoin has also decided to stop trading the XRP token on January 4, 2021, deposits will also be suspended, the company said on its blog.
Crypto.com trading platform just made a similar announcement with a trading halt on Jan. 19, 2021 for U.S. clients, the company said on its blog.
B2C2 market maker and payment provider Simplex have also temporarily suspended XRP trading or removed it altogether.
Bitstamp exchange was one of the first to decide to stop trading the XRP token but only for its US clients.
The fact that major crypto exchanges like Coinbase decide to stop trading the XRP token could have a snowball effect and cause many other crypto exchanges to do the same.
A chaotic situation for Ripple and its XRP token, so we will now have to wait for this lawsuit against the SEC to see the situation improve IF the US justice decides in favor of Ripple.
The crypto startup could also negotiate an out-of-court settlement with the SEC as is often the case in this type of lawsuit against the US administration.
