Exclusives

XRP Crashes as Coinbase Suspends Trading

Source: Adobe/sorapop

The fourth-largest cryptoasset, XRP, crashed to September lows after US-based major exchange Coinbase said it will suspend its trading on Tuesday due to a recent regulatory crackdown on XRP-affiliated Ripple.

At the time of writing (04:03 UTC), XRP trades at USD 0.2248 and is down by almost 21% in a day and 53% in a week. The price dropped by 63% in a month, trimming its gains over the past 12 months to less than 16%.

XRP price chart:

XRP Crashes as Coinbase Suspends Trading 102
Source: coinpaprika.com

Coinbase Pro, one of the trading platforms operated by Coinbase, is responsible for 3%-5% of the total XRP trading volume in the past 24 hours (USD 5.22bn), according to various crypto market data providers.

Trading has already been moved into limit only and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time at the latest, the company said in a blog post.

They added:

  • XRP wallets will remain available for deposit and withdraw;
  • Customers will remain eligible for the Spark airdrop;
  • The company will continue to support XRP on Coinbase Custody and Coinbase Wallet.

“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. We take seriously any decision to change our customers’ access to one of those assets,” the company said.

Multiple trading plaftorms have already announced they’re suspending XRP trading after the US Securities and Exchange Commission filed a lawsuit against Ripple.

Most recently, Bitstamp also said it is going to halt all trading and deposits of XRP for their US customers on 8 January 2021 at 9 PM UTC.

Meanwhile, even major exchanges that do not offer trading services in the US market are keeping a close eye on the situation.

“The SEC’s action against Ripple remains outside of our operating jurisdiction, but we are closely monitoring for new developments. As a brand rooted in trust, safety, and compliance, we respect and trust the due process of law. However, the safety of our users and their assets are of paramount importance so we will continue to assess the situation as the matter progresses,” Ciara Sun, VP of Global Markets of Huobi Group, told Cryptonews.com.

As reported, the Huobi business group appears set to make a return to the United States a year after it hastily exited the country.
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Learn more:
Crypto Regulation in 2021: The Piecemeal Approach & New Winds
Regulatory Kaleidoscope Challenges Crypto Industry – Crypto.com CCO
New Regulatory Lemons Await Somewhere Between DeFi & CeFi

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