Coinbase, Crypto.com, and OKCoin to Suspend XRP Trading Next Month
XRP has fallen another spot to 5th position as the digital asset continues to lose value. Meanwhile, some in the market speculate XRP fork Spark (FLR) to be its replacement by Ripple.
Coinbase has announced its plan to “fully suspend” trading in XRP next month.
The San Francisco-based cryptocurrency exchange, the largest exchange in the US, is the latest to join the growing list of platforms not supporting XRP services anymore.
Starting January 19, 2021, at 10 AM PST, Coinbase users won’t be able to trade the digital asset anymore. For now, all XRP books on the exchange have been moved to limit only.
However, users will continue to have retail access to their XRP funds. Additionally, Coinbase Wallet and Coinbase Custody will continue to support XRP while the exchange “monitors legal developments.”
OKCoin is another one suspending XRP trading and deposits on Jan. 4, 2021, and asking users to return the borrowed value of XRP before Jan. 3 as well or delays will trigger a liquidation.
Just like Coinbase, Crypto.com will be delisting XRP from its app in the US from Jan 19. While US-based customers won’t be able to deposit the digital asset, withdrawal won’t be affected. Their XRP Earn deposits will unlock XRP on which interest will be paid up until Dec. 29, 2020.
Interestingly, Crypto.com clarifies that it will continue to support Flare Network’s upcoming Spark (FLR) Token Distribution, which is set for the first half of 2021.
Some are speculating that this XRP fork, supported by all the cryptocurrency exchanges and praised by Ripple, whose snapshot occurred just 10 days before the SEC lawsuit could be an XRP replacement.
The Free Fall
XRP trading suspension has been in the light of the SEC's recent action against Ripple. The leading spot exchange Binance is the major exchange left with no decision yet, which if suspended XRP trading would mean a big hit to the digital asset.
XRP enthusiasts meanwhile still believe it is just short-term and everything will be fine in the long run. Trader CryptoCred, who has said to be heavily invested in XRP, said,
“US exchange delistings should not surprise. It’s the international exchanges that bring in 90+% of the volume that I really care about here as THEM delisting would be of much more concern. XRP was fine before Coinbase and will be fine after.”
The US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its two key executives last week.
The suit is potentially one of the largest legal engagements in the crypto industry. US regulators are charging the company with unregistered securities on a continuous basis. The SEC has had similar litigation against companies in the past such as Block.one, the company behind the cryptocurrency EOS, the biggest ICO ever of $4 billion, which settled for just $750k.
Ripple has the benefit of some of the best legal counsel available and of course, considerable funding.
Ever since the news broke out last week, the price of XRP has been in a free fall. The digital asset has fallen another 35% today to $0.193 and taken down the broad crypto market along with it, again.
As a result, the digital asset has fallen to the fifth spot on Messari, with a market cap of $7 billion.