Cryptocurrency
What should be known about the suspension of XRP by Ripple on Coinbase?
The American platform Coinbase has dropped the XRP token exchanges of Ripple after its troubles with the Securities and Exchange Commission (SEC).
As a result, Coinbase has no longer offered it to its members since January 19, 2021. However, XRP wallets remained open for deposits and withdrawals.
This was yet another blow for Ripple since Coinbase is considered a major player in the cryptocurrency space.
In this article, we will delve deeper into this topic.
Before addressing this point, it would be good to recall the respective functions of these two concepts, namely Ripple and Coinbase.
Ripple is a company whose mission is to manage interbank flows at an unprecedented rate, involving financial institutions such as banks and private institutions.
Ripple officially launched in 2012, and since then, its activity has only prospered.
Often, we find that many people consider the acronyms Ripple and XRP to be identical. Moreover, XRP is an independent digital asset with a source-coded blockchain.
Ripple is therefore a company that conceptualized and created the payment system, while XRP refers to a cryptocurrency managed by this system.
Coinbase, for its part, is an open platform in the American market that allows its members to buy and sell cryptocurrencies. They have the option to easily transfer or receive any cryptocurrency they are interested in, such as XRP. This company aims to establish a financial device accessible to everyone, thereby becoming the best international brand capable of facilitating the exchange of local currency such as the euro, dollar,… etc., into digital currency such as bitcoin, XRP,… etc., and vice versa.
Coinbase introduced XRP on its electronic cryptocurrency buying and selling platform in February 2019. However, the platform decided to halt trading and deposits of XRP for all its members on January 19, 2021, after being sued by the Securities and Exchange Commission (SEC).
The SEC accuses Ripple and two of its executives of conducting an unregistered securities sale amounting to up to $1.3 billion.
According to the allegations made in the lawsuit, the defendants failed to declare their offers as well as their XRP sales or to comply with any exemption from reporting, which constitutes a breach of federal securities laws. Consequently, Coinbase terminated XRP transactions on the platform.
Despite this suspension of trading, cryptocurrency traders can make withdrawals and check their XRP in their wallets.
The XRP price of Ripple had rather enjoyed good success at the end of 2020, with a remarkable increase in its price. However, following all these events, such results eventually turned to dust.
Moreover, the XRP price has decreased on Coinbase, dropping from $0.28 to $0.24 in the first twenty minutes following the announcement!
And barely a week had passed since the date of its suspension, which visibly affected the price of Ripple’s cryptocurrency, which recorded a very sharp decline, losing almost 70% of its value.
Indeed, these events led to bad repercussions on Ripple and its token. Numerous platforms have successively disassociated themselves from XRP, either before or after Coinbase. Of course, this list is not exhaustive, given the speed at which the XRP withdrawals have multiplied. This list includes:
Now we must see how Ripple will behave in the coming years, as many cryptocurrencies are appearing more and more, and some phenomena are disrupting the market, like NFTs (Non-Fungible Tokens).
The news in the crypto universe has been hectic for several weeks as NFT projects are being launched every day.
Let’s be patriotic; for once, French developers and creatives are making a name for themselves. The singer Booba has also, at the beginning of November, granted access to view his music video only to the holder of his new title in the form of an NFT.
NFTs are also making a lot of noise in the video game universe. Like MineCraft or Fortnite, which is evolving in the premises of the Metaverse, rewards that were once worthless are becoming increasingly sought after and are traded at crazy prices. This marks the beginning of the advent of Play2earn games. Anthony Gonnet in his online cryptocurrency training Vortex and Orbital makes reference to them as levers for potentially interesting future added value.
We are at the end of 2021 at the very start of a revolution in the field of digital art thanks to NFTs
As a result, Coinbase has no longer offered it to its members since January 19, 2021. However, XRP wallets remained open for deposits and withdrawals.
This was yet another blow for Ripple since Coinbase is considered a major player in the cryptocurrency space.
In this article, we will delve deeper into this topic.
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The suspension of Ripple’s XRP on Coinbase
Before addressing this point, it would be good to recall the respective functions of these two concepts, namely Ripple and Coinbase.
Ripple is a company whose mission is to manage interbank flows at an unprecedented rate, involving financial institutions such as banks and private institutions.
Ripple officially launched in 2012, and since then, its activity has only prospered.
Often, we find that many people consider the acronyms Ripple and XRP to be identical. Moreover, XRP is an independent digital asset with a source-coded blockchain.
Ripple is therefore a company that conceptualized and created the payment system, while XRP refers to a cryptocurrency managed by this system.
Coinbase, for its part, is an open platform in the American market that allows its members to buy and sell cryptocurrencies. They have the option to easily transfer or receive any cryptocurrency they are interested in, such as XRP. This company aims to establish a financial device accessible to everyone, thereby becoming the best international brand capable of facilitating the exchange of local currency such as the euro, dollar,… etc., into digital currency such as bitcoin, XRP,… etc., and vice versa.
The suspension of XRP on Coinbase
Coinbase introduced XRP on its electronic cryptocurrency buying and selling platform in February 2019. However, the platform decided to halt trading and deposits of XRP for all its members on January 19, 2021, after being sued by the Securities and Exchange Commission (SEC).
The SEC accuses Ripple and two of its executives of conducting an unregistered securities sale amounting to up to $1.3 billion.
According to the allegations made in the lawsuit, the defendants failed to declare their offers as well as their XRP sales or to comply with any exemption from reporting, which constitutes a breach of federal securities laws. Consequently, Coinbase terminated XRP transactions on the platform.
Despite this suspension of trading, cryptocurrency traders can make withdrawals and check their XRP in their wallets.
The consequences
The XRP price of Ripple had rather enjoyed good success at the end of 2020, with a remarkable increase in its price. However, following all these events, such results eventually turned to dust.
Moreover, the XRP price has decreased on Coinbase, dropping from $0.28 to $0.24 in the first twenty minutes following the announcement!
And barely a week had passed since the date of its suspension, which visibly affected the price of Ripple’s cryptocurrency, which recorded a very sharp decline, losing almost 70% of its value.
Other similar suspension actions
Indeed, these events led to bad repercussions on Ripple and its token. Numerous platforms have successively disassociated themselves from XRP, either before or after Coinbase. Of course, this list is not exhaustive, given the speed at which the XRP withdrawals have multiplied. This list includes:
- BitStamp: this is the oldest cryptocurrency trading platform, which also decided to end XRP trading. The suspension took place on January 8, 2021.
- Crypto.com: this platform decided to remove XRP from its system and suspend trading on January 19, 2021.
- Grayscale: Grayscale, a company in charge of institutional investments, also took the same initiative.
- The exchange platforms OKCoin and the market maker B2C2 also followed suit, with the former doing so on January 4, 2021, and the latter on December 24.
Now we must see how Ripple will behave in the coming years, as many cryptocurrencies are appearing more and more, and some phenomena are disrupting the market, like NFTs (Non-Fungible Tokens).
NFTs booming at the end of 2021
The news in the crypto universe has been hectic for several weeks as NFT projects are being launched every day.
Let’s be patriotic; for once, French developers and creatives are making a name for themselves. The singer Booba has also, at the beginning of November, granted access to view his music video only to the holder of his new title in the form of an NFT.
NFTs are also making a lot of noise in the video game universe. Like MineCraft or Fortnite, which is evolving in the premises of the Metaverse, rewards that were once worthless are becoming increasingly sought after and are traded at crazy prices. This marks the beginning of the advent of Play2earn games. Anthony Gonnet in his online cryptocurrency training Vortex and Orbital makes reference to them as levers for potentially interesting future added value.
We are at the end of 2021 at the very start of a revolution in the field of digital art thanks to NFTs
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