HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Grayscale Is In The Process Of Completely Dissolving XRP Trust Following The SEC’s Lawsuit Against Ripple

Altcoins 2021/01/14 14:19 by Brenda Ngari
Grayscale Is In The Process Of Completely Dissolving XRP Trust Following The SEC’s Lawsuit Against Ripple

Grayscale, the world’s largest digital asset investment company has already started terminating its XRP Trust. This comes a week after the firm liquidated XRP positions from its Digital Large Cap Fund.

According to the official announcement on January 13, this move is in response to the lawsuit brought in December 2020 by the United States Securities and Exchange Commission (SEC) against XRP issuer Ripple, the CEO Brad Garlinghouse, and Executive Chairman Chris Larsen. The agency alleges that the defendant raked in at least $1.3 billion in illegal XRP sales since 2013. Notably, the bulk of the lawsuit indicates that XRP should be regulated as a security in the United States.

This suit has had undesirable effects on the XRP token. Per yesterday’s announcement, Grayscale believes that “it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP to U.S. dollars, and therefore continue the Trust’s operations.”

As such, the company will liquidate all the XRP held by the Trust and distribute the cash proceeds to shareholders. “The Trust will terminate following distribution of the net cash proceeds,” Grayscale summarized.

The past couple of weeks have been tough for XRP. Major cryptocurrency exchanges like Binance US, Bitstamp, Coinbase, and OKCoin all suspended trading of the token in the wake of the SEC lawsuit.

Fortunately, the market environment for XRP is less hostile in Asia. Per a  Wednesday report by The Block, Japan’s Financial Services Agency asserted that it deems XRP a cryptocurrency, not a security — as its U.S. counterpart argues.

XRP is currently the fourth-largest cryptocurrency by market capitalization. The coin has shed 1.06% on the day to trade at around 29 cents.

Grayscale Is In The Process Of Completely Dissolving XRP Trust Following The SEC’s Lawsuit Against RippleXRPUSD Chart By TradingView

Despite the SEC-induced damage, XRP was able to bounce back from the $0.17 December lows. This is, however, a far cry from the recent November 2020 high of almost $0.80

0 Like(s)



You should also read...

Altcoins 30/12/19 10:57 by Ponvang Bulus
Trader Dissects How Ripple’s XRP Could Gain Nearly 200% If This Bullish Pattern Plays Out
Ripple’s XRP has had its fair share of the price struggle in 2019. It is one of those with the worst price performances among the top ten in 2019 and there seems to be no light at the end of the tu...
Read More
Altcoins 28/03/20 06:00 by Nick Chong
Analyst Who Called XRP’s Drop to $0.16 Is Still Expecting Upside: Here’s Why
Over the past five hours, cryptocurrencies across the board, from Bitcoin to XRP, have not performed well. Since the daily peak at $6,700, the price of BTC has fallen as low as $6,050, a drop of 10% ...
Read More
Altcoins 03/07/20 18:00 by Tony Spilotro
The Price Trend of XRP Stunningly Reflects That of Sheep Manure Stock
XRP price has struggled throughout the last two years of the bear market. It has ranked amongst the worst performing altcoins, despite trailing right behind Bitcoin and Ethereum in market cap. Investo...
Read More
Altcoins 16/12/20 00:00 by Cole Petersen
This On-Chain Metric Spells Trouble for XRP Following SPARK Airdrop
XRP has seen some mixed price action as of late, with the cryptocurrency’s price not breaking firmly below $0.50 as the selling pressure placed on it begins mounting The cryptocurrency is now o...
Read More
Altcoins 05/01/21 23:27 by John Caroline
Giving Up On Ripple: Grayscale Joins The Queue Of Institutional Investors Wiping XRP Off
Over the last few weeks, XRP has begun to lose its significance in the crypto space as the recent SEC lawsuit against Ripple has caused an adverse impact on the performance of the cryptocurrency. ...
Read More