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After SEC's lawsuit against Ripple, Coinbase to plan suspension of Ripple trade
Last week, the US Security and Exchange Commission (SEC) has filed a lawsuit against Ripple that, XRP is not a crypto asset and falls under the category of security. This has created a huge impact on Ripple's stand in the market. The price of the world's third-largest crypto has also crashed. The leading exchanges delisted Ripple from their trading environment as a consequence of this lawsuit.
Following the other exchanges, Coinbase on Tuesday intimated the suspension of XRP from their platform from January 19.
Ripple is the largest cryptocurrency following Bitcoin, an Ethereum. The US Securities and Exchange Commission has sued both the founder and CEO of Ripple for raising 1.3 billion USD through unregistered securities offering by selling XRP. The commission also files a lawsuit, which crashed the Ripple's current value by 40%. This sudden blow shocked the Ripple holders, both big players, and daily traders.
Coinbase made sure that the suspension of Ripple's trade in the exchange will have no impact on the wallets. The traders or customers as usual can enjoy accessing the wallets which will be available for withdrawal and deposits, even after the suspension.
Also, Coinbase added that customers will remain eligible for previously announced Spark airdrop, and coinbase will always extend its support to XRP on custody and wallet.
The trading of XRP will be limited from December 28, and by Jan 19, the trade will be fully suspended.
The SEC lawsuit said that XRP is a security and it does not fall under a crypto asset. Also, it claims that the former CEO and founder of Ripple, Christian Larsen, and the current CEO Bradley Garlinghouse violated securities by selling XRP for almost seven years right from 2013. But the company is confident and says that SEC is completely wrong on the facts and law. They claim that SEC does not play by the book and hoping to prevail before a neutral fact-finder.
Though the leading cryptocurrency exchanges keep on delisting XRP from their platforms, Ripple does not seem, to give up. They recently argued in a blog post that Ripple is just like the other cryptocurrencies like Bitcoin, and Ether, which is deemed by the SEC and XRP is not an investment contract.
Ripple was recently valued at $10 billion following a $200 million funding round.