Total Market Cap
Ripple suffer a huge loss after SEC’s accusations that Ripple violated regulations by selling $1.3 billion worth of unregistered securities. The company announced on the 21st of December, 2020 that a lawsuit will be filed against them by the SEC, according to FORTUNE. This lawsuit triggered a more than 70% drop in XRP price as exchanges and fund managers began to drop XRP from their platform.
Coin Metrics, a leading data provider on all things cryptocurrency and blockchain, estimated that the number of wallet addresses holding at least 1 million XRP has dropped to 1,567 from 1,721 between Dec. 21, 2020, and Jan. 3, 2021. Amid the regulatory uncertainty surrounding Ripple, XRP whales (large holders of the cryptocurrency) have started liquidating a large portion of their holdings.
On the 22nd of December, Grayscale Investments announced that its Digital Large Cap Fund had been fully liquidated of its XRP holdings. Grayscale also announced that it’s only holding BITCOIN, ETHEREUM, and LITECOIN in its Digital Large Cap Fund.
Despite the fact that the price of Ripple plunged alongside other cryptocurrencies, the lawsuit wiped out all the gains in less than a week. Ripple was trading at $0.6 the week before the announcement of the lawsuit. Once the lawsuit was filed against them, the price of XRP dropped to $0.21 in just a week, driving the price near 2019 low. The volume of the drop in the XRP price surpassed all previous volumes in the entire history of Ripple.
Joshua Frank, the CEO of @TheTIEIO has this to say about Ripple.
Ripple has just lost its place to Litecoin (LTC), which just surpassed Ripple in total market cap. All this happening in the space of 2-3 weeks after the lawsuit. Could this be the end of Ripple? Or is the company going to bounce back from this and turn things around for their investors?
With large investment funds and exchanges delisting XRP from their holdings, it’s looking worse for Ripple.
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Tobi is a full time day/swing trader with 3 years’ experience in the currency and commodity market. He is interested in cryptocurrencies in combination to the current financial system. Tobi holds a bachelor's degree in Agriculture.