On December 23, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, along with company CEO Brad Garlinghouse and co-founder Chris Larsen, for issuing unregistered securities. Affected by this, the price of XRP was cut in half that day. However, the crisis suffered by XRP is not limited to this. A large number of exchanges are canceling XRP trading pairs and suspending their transactions in order to avoid getting caught up in the fire. In the next period of time, XRP may experience a wave of delisting.
On January 12, Binance US will officially delist XRP, and XRP transactions and deposits will be suspended.
On January 15, the Bittrex exchange will officially cancel trading of XRP at 4 p.m.
On January 20, Coinbase, the first U.S. exchange with a formal license, plans to suspend XRP trading.
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About Ripple
Ripple is the basic token of the Ripple network, and its operating company is Ripple Labs, whose predecessor was OpenCoin, which was jointly established by Chris Larsen and Jed McCaleb in 2012. Ripple is the only universal currency in the Ripple system. Its goal is to become an intermediate bridging currency used by financial institutions to solve global cross-border payments, so as to build a faster and cheaper global payment network.
For a faster payment experience, Ripple adopts a brand-new consensus algorithm, which can process more than 1,500 transactions per second. The confirmation time only takes 3-5 seconds, and each transaction fee is as low as 1 cent, which is almost zero.
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Brilliant Ripple
Ripple has also ascended to the hall of glory. As the worlds first open payment network, Ripple has received a lot of attention and popularity because of its simple operation, fast transfer and low handling fee. In April 2013, Ripple received US$1.5 million in financing from a number of investment institutions, including international financial giants such as Google Venture Capital and IDG Capital. In September 2016, the Japanese consortium SBI Group acquired a 10.5% stake in Ripple for $55 million. On January 4, 2018, the price of XRP once rose to a historical high of $3.31, an increase of more than 500 times in a year, and its total market value is comparable to that of Google, Apple and Alibaba. Ripple once had a bright future.
Ripple
Long before being investigated and prosecuted by the SEC, Ripple was often criticized by investors.
Most of it comes from the selling of founders and companies. In the past year alone, Ripple co-founder and former CTO Jed McCaleb sold $411 million in XRP, making his total profit from selling XRP reach $546 million. And according to the convention, Ripple will unlock 1 billion XRP on the first day of each month. Even after being investigated and prosecuted by the SEC, on January 1, 2021, Ripple unlocked 900 million XRP as promised, equivalent to more than 216 million US dollars.
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Ruibo, who is pushed down by everyone
According to Coin Metrics estimates, between December 21, 2020, and January 3, 2021, the number of wallet addresses holding at least 1 million XRP has dropped from 1,721 to 1,567, and the number of addresses holding at least 1 million XRP It was the lowest level since October 2019. At the same time, according to Grayscale’s official news, on January 4th, they have sold all the XRP in the fund, and at the same time, starting from 5:00 pm on January 15th, 2021, the trading of XRP will be temporarily suspended. And remove XRP from the Grayscale Digital Large Cap Fund (GDLC).
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Ripple fighting hard
Perhaps the market reaction made Ripple feel the crisis, and Ripple and its team are trying to give the market and its investors confidence in various ways.
One is from the market price of Ripple currency. After the price has been cut in half, Ripple currency has started a strong rise. In the past few days, the price of Ripple currency has risen from US$0.2 to US$0.35, and it has risen within a day. 55%, Ripple is trying to give market investors confidence in market prices.
The second is that the official team has begun to discuss the investigation by the SEC in public compared to the previous silence, and is trying to release positive aspects to the market. On Friday, January 8, Ripple CEO Brad Garlinghouse tweeted that , Ripple is trying to settle with the SEC, adding: “It is not possible to detail the settlement at this time, but we have tried and will continue to work with the new government to try to resolve this issue in some way so the Ripple community can continue Innovate, protect consumers and maintain orderly markets.
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X-factor of Ripple being investigated
There is no doubt that the recent United States is very lively, because of the issue of the transfer of presidential power, there have been a lot of riots in the United States. There are indications that the transfer of power in the United States may not be smooth. Due to differences in political parties, after the transfer of power is completed, the SEC may also undergo a wave of personnel adjustments. In the short term, the SEC may not have time to devote more energy to Regarding Ripple, the latest news also shows that the SEC’s review of Ripple will be tentatively scheduled for February. This proves that Ripple has sufficient time to prepare and respond to SEC scrutiny.
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Where is Ripple going next?
How should Ripple under investigation get out of the crisis? Once the accusation is established, whether Ripple will flee the United States to continue the project or actively admit its mistakes and close certain businesses and pay fines so that the project can continue to operate. Regardless of the choice, Ripple will spend a lot of energy and financial resources. Perhaps for Ripple, there is really not much time left.
