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Ripple Update: Another Crypto Fund Delists XRP, Doomsday Doctor Rubs Salt in the Wound, CEO: You Will Soon Know the Truth

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Ripple Update: Another Crypto Fund Delists XRP, Doomsday Doctor Rubs Salt in the Wound, CEO: You Will Soon Know the Truth

Earlier reports indicated that the cryptocurrency exchange Coinbase would delist Ripple's XRP on Friday. However, another U.S. exchange, Bitstamp, took the lead by announcing the suspension of XRP trading and deposits for U.S. users. Cryptocurrency investment firm Sarson Funds also declared that they would liquidate their XRP holdings. In response to these unfavorable developments, Ripple's CEO spoke out, stating, "The world will soon understand the truth of the matter."

Indicator Exchange – Bitstamp

According to reports, Bitstamp was founded in July 2011 and is ranked seventh globally in trading volume, alongside the heavyweight U.S. exchange Kraken.

Official statements indicate that this is due to Ripple being sued by the SEC, potentially classifying XRP as a security. However, they will continue to monitor the situation and adapt accordingly. U.S. users can still withdraw XRP at any time, while users outside the U.S. will not be affected.

Larry Cermak, Director of Research at The Block, who initiated a poll on Twitter at the outset of the incident, also shared his views:

You'd have to be pretty dumb to think that other major U.S. exchanges won't follow suit and delist. Only allowing U.S. users to trade was one of the initial, milder decisions made, but given Coinbase is preparing for an IPO, delisting XRP entirely is still a possibility.

Market Makers and Institutions Abandon Ship

As of the 24th, top high-frequency trading firm Jump Trading, crypto investment firm Galaxy Digital, and asset manager Bitwise have all claimed to exit the XRP trading market. Bitwise also removed XRP from its top 10 cryptocurrency index fund, the 10 Crypto Index Fund, and liquidated its $9.3 million XRP holdings.

Additionally, Boston-based crypto investment firm Sarson Funds has removed XRP from all its products and stated in anotice:

In response to the SEC’s lawsuit against XRP, we will be removing XRP from the following products: "Large coin," "Small coin," "Crypto & Income," "SmartCrypto." We are also in the process of liquidating all holdings as the SEC's actions have placed XRP outside of our investment scope.

Doomsday Doctor Rubs Salt in the Wound

The SEC's charges can be considered the largest hunting action in the crypto industry in recent years. Not missing this opportunity to criticize cryptocurrencies as always, doomsday doctor Nouriel Roubini expressed on Twitter :

XRP crashed 55% in less than a week. I am waiting for other garbage coins to be slaughtered. It will start with Bitcoin. The enforcement agencies finally start to crack down on this large cesspool of infinite expansion and useless junk coins.

Ripple CEO Expresses Confidence

Indeed, Ripple's XRP rebounded like a bottom on 12/25, with a single-day increase approaching 50%. However, after Bitstamp's announcement, it plunged again from $0.38 to $0.3. In response, the Ripple team did not sit idly by. Their legal counsel, Stuart Alderoty, mentioned on Twitter :

The SEC says Ripple has been conducting unregistered securities financing since 2013. After 7 years, they decide to sue the day before the SEC chairman resigns? As always, the SEC carefully selects and omits facts, such as XRP sold by Ripple itself, only accounting for 0.43% of global trading volume in 2018 and 0.22% in the first quarter of 2019.

Alderoty emphasizes that the SEC's charges are "unproven" and looks forward to the showdown in court with the SEC. Ripple CEO Brad Garlinghouse also echoes his legal counsel's statements on Twitter:

So far, we've only heard one side of the story from the SEC. Legal proceedings will soon unfold, and the world will have a more comprehensive understanding of the facts.