The Cryptocurrency exchange Coinbase has announced to suspend XRP trading in the digital currency starting from Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time* after US regulators last week charged associated blockchain firm Ripple with conducting a US$1.3 billion unregistered securities offering.
In response to the United States Securities and Exchange Commission taking legal action against Ripple.The trading suspension will not affect customers’ access to XRP wallets which will remain available for deposit and withdraw functionality after the trading suspension. We will continue to support XRP on Coinbase Custody and Coinbase Wallet.
Founded in 2012, Coinbase is one of the best-known cryptocurrency platforms globally and has more than 35 million users in over 100 countries. SEC claimed last week that XRP is a security, and that Ripple has been selling it without registering or seeking an exemption for seven years, raising $1.3 billion in the process.
The legal battle itself is just beginning, and litigation might take years if Ripple fights the charge in court, as it has indicated it would.
The price of XRP on Coinbase tanked from $0.28 to $0.24 within the first 20 minutes of the announcement. Since the announcement of the SEC’s lawsuit last week, the price of XRP has fallen by more than 50%.
Ripple created and sold XRP, the third-biggest cryptocurrency by market value.
What is the reasons of dropping XRP as a traded asset
1. Company seeks to go public
2.Coinbase is now the biggest exchange to act on XRP and could serve as a bellwether for other platforms.
3.The SEC claimed last week that XRP is a security, and that Ripple has been selling it without registering or seeking an exemption for seven years, raising $1.3 billion in the process.
4.Coinbase remains committed to being the most trusted platform for trading cryptocurrency.they are striving to provide customers with access to a broad set of assets, all of which are evaluated against Digital Asset Framework to access factors like security and compliance.