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."