SEC lawsuit against Ripple prompts Coinbase to suspend trading of XRP

[Shawn Knight]

What just happened? Digital currency exchange Coinbase has announced plans to suspend trading of XRP on its platform following the Securities and Exchange Commission’s lawsuit against the cryptocurrency’s creator, Ripple Labs Inc. Unsurprisingly, the coin's value is tanking as a result.

Coinbase said trading of the cryptocurrency has moved into limit only and will be fully suspended on January 19, 2021, at 10 am Pacific.

It’s worth noting that the trade suspension will not affect customers’ access to their XRP wallets. What’s more, users will still be eligible for Spark airdrop, which was announced earlier this month. More information on that can be found over on Coinbase’s website.

XRP is one of a plethora of “alternative” cryptocurrencies at the lower end of the value spectrum. Aside from a brief spike at the end of 2017 during the last big crypto run, XRP has largely hovered around the $.25 per coin range. It shot up to around $.60 in the latest run earlier this month but is back on the decline following the SEC’s lawsuit.

Over the past 24 hours, its value has slid nearly 35 percent and is trading at $.19 as of this writing.

The aforementioned suit alleges that Ripple and two of its executives raised over $1.3 billion “through an unregistered, ongoing digital asset securities offering.” The complaint “charges defendants with violating the registration provisions of the Securities Act of 1933, and seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.”

Image credit Stanslavs, Chris Liverani

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https://www.techspot.com/news/88108-coinbase-suspending-trading-xrp-following-sec-lawsuit-against.html

 

[QuantumPhysics]

The SEC lawsuit against ripple – calling it an “unlicensed security“ is ultimately the reason why I absolutely do not trust Cryptocurrency in general.

I do hold bitcoin which I’ve held since 2015 but I do not add anything more into my portfolio and I haven’t cashed out because #1 I was waiting to see where it goes and #2 I don’t want to have the IRS auditing me.

The IRS and SEC are both hawks which ultimately ensure that an American citizen can’t move the majority of their money into cryptocurrency without high levels of scrutiny or audits. The allegations of money laundering are waiting in the wings for those who do. The allegations of tax evasion are waiting in the wings for those who do.

It’s one thing if you move out of the USA/China/any other country who is against cryptocurrency and make your money available in crypto but then you have to deal with the uncertainty of volatility.

what kills me is the people on YouTube like Trevon James, cryptodoug and Cryptonick who have been allowed to pump up cryptos like Ripple and Tron only to watch something like this happen when the government completely turns on them and sends those cryptocurrency‘s tumbling.

At the very least: the SEC can claim that most of these alt coins are “pump and dumps“ and use that premise to attack them.

While I can see digital cryptocurrency is being used to expedite the transfer of money the reality is that the public isn’t trying to really use them for that. The public is buying cryptocurrency to speculate on the price and attempting to cash out at a higher value then they initially deposited. That is the reason why the SEC is able to label XRP as an unlicensed security.

The reality is that no major government is going to allow their currency to be threatened by bitcoin or any of the alt coins. China is even has a new digital yuan.

furthermore: bitcoin has never been a currency and is up against the US dollar/gold/silver and other commodities that actually have a history of being used as currency. We are never going to see the day when governments pay their workers in cryptocurrency simply because of the volatility. We are never going to see the day when taxation is done using cryptocurrency. Bitcoin for example has no value on its own and it’s only value is based on “how many dollars you can buy with it“. That also applies in other countries such as China and Japan where the value of bitcoin is based on how many Yuan or Yen you can buy with it.

Cryptocurrencies are speculative assets..

 

[Uncle Al]

Cryptocurrency is at best, very, very shaky. It is the epitome of "on your own" investing. I'd rather go to a crap game against pro's than put a nickel into it and those that loose their shirts have gotten what they deserve. No thanks, nada, not for me!

 

[VitalyT]

This article is too late to the party.

XRP was $97 on November 24th, and today it dropped to $1, after a month of declining.

They are all scam-coins, and the ones still trading simply haven't been confirmed to be a scam yet.

 

[QuantumPhysics]

This article is too late to the party.

XRP was $97 on November 24th, and today it dropped to $1, after a month of declining.

They are all scam-coins, and the ones still trading simply haven't been confirmed to be a scam yet.

I guess you meant 0.97

In reality XRP does have a future but the problem is that the SEC wants to be able to regulate these things. Any financial product that people invest in with the intention of profiting from is ultimately going to be label to security. Bitcoin hasn’t been hit yet but the IRS is ensuring that either you will pay taxes on every penny earned or that if they see you move too much money using it they’ll be able to accuse you of money laundering.

 

[VitalyT]

I guess you meant 0.97

Arh, yes, I've looked at the wrong chart, so many charts for seemingly the same coins.

On Nov 24th, XRP was $0.78, and today it dropped to $0.17

 

[Dimitrios]

The SEC lawsuit against ripple – calling it an “unlicensed security“ is ultimately the reason why I absolutely do not trust Cryptocurrency in general.

I do hold bitcoin which I’ve held since 2015 but I do not add anything more into my portfolio and I haven’t cashed out because #1 I was waiting to see where it goes and #2 I don’t want to have the IRS auditing me.

The IRS and SEC are both hawks which ultimately ensure that an American citizen can’t move the majority of their money into cryptocurrency without high levels of scrutiny or audits. The allegations of money laundering are waiting in the wings for those who do. The allegations of tax evasion are waiting in the wings for those who do.

It’s one thing if you move out of the USA/China/any other country who is against cryptocurrency and make your money available in crypto but then you have to deal with the uncertainty of volatility.

what kills me is the people on YouTube like Trevon James, cryptodoug and Cryptonick who have been allowed to pump up cryptos like Ripple and Tron only to watch something like this happen when the government completely turns on them and sends those cryptocurrency‘s tumbling.

At the very least: the SEC can claim that most of these alt coins are “pump and dumps“ and use that premise to attack them.

While I can see digital cryptocurrency is being used to expedite the transfer of money the reality is that the public isn’t trying to really use them for that. The public is buying cryptocurrency to speculate on the price and attempting to cash out at a higher value then they initially deposited. That is the reason why the SEC is able to label XRP as an unlicensed security.

The reality is that no major government is going to allow their currency to be threatened by bitcoin or any of the alt coins. China is even has a new digital yuan.

furthermore: bitcoin has never been a currency and is up against the US dollar/gold/silver and other commodities that actually have a history of being used as currency. We are never going to see the day when governments pay their workers in cryptocurrency simply because of the volatility. We are never going to see the day when taxation is done using cryptocurrency. Bitcoin for example has no value on its own and it’s only value is based on “how many dollars you can buy with it“. That also applies in other countries such as China and Japan where the value of bitcoin is based on how many Yuan or Yen you can buy with it.

Cryptocurrencies are speculative assets..

Well said!