The Securities and Exchange Commission (SEC) has dropped a bomb on XRP as the coin has lost the fourth position on some data aggregate platforms.
On-Chain Data of OnChainFx
OnChainFx of Messari shows the position of XRP below Litecoin (LTC) in terms of market capitalization. Unlike CoinMarketCap, OnChainFx determines the position of coins based on the liquidity in the market. On the other hand, CoinMarketCap still places XRP above Litecoin with a difference of $2 billion.
XRP price suffered a lot after the US regulator filed a lawsuit against the company for selling unregistered security to investors. As per the lawsuit, the Ripple supervised offering of XRP as security worth over $1.3 billion.
Some small crypto exchanges terminated trading of XRP immediately after the SEC declared XRP as security. In the list of biggest exchanges, the US-based Coinbase was the first crypto company that suspended trading of the coin. According to Paul Grewal, the chief legal officer at Coinbase:
“We strive to provide our customers with access to a broad set of assets, all of which are evaluated against our Digital Asset Framework to assess factors like security, compliance, and the project’s alignment with our mission of creating an open financial system for the world.”
Following Coinbase, OKCoin and Bitstamp also stopped trading of XRP coin. However, the recent action of Coinbase will not impact the custody service of the platform. Bitstamp said in its blog post that the trading service for XRP was terminated only for US customers.
Instead of criticizing the decision of the SEC, the majority of the crypto personalities favor the lawsuit of the US regulator against the San Francisco-based crypto company. Some people believe the new head of the SEC has a favorable attitude towards crypto assets. Elad Roisman may ease the situation for Ripple but it does not seem an easy task. “It’s extremely unlikely that changes in SEC leadership will have any impact on the Ripple case,” said Famous lawyer Jake Chervinsky.
The price value of XRP is decreasing without a stop. Currently, it is trading at $0.21 after decreasing by 26.09% in the last 24-hours. Over the weekly timeframe, the crypto coin is down 51.39%.
In response to the lawsuit, Ripple CEO Brad Garlinghouse expressed his thoughts over it and said he would fight the case in court. He also rejected the allegations of SEC.