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Ripple

XRP Selloff Intensifies as Industry Leaders Lament Ripple Demise

San Francisco based fintech firm Ripple is having a bad week, finding itself on the end of formal charges from the U.S. Securities and Exchange Commission.

The regulator alleges that the company conducted a $1.3 billion unregistered securities offering and failing to provide investors with adequate disclosures about XRP.

Industry leaders have been lamenting the demise of the company and some creative soul has even created a CNBC parody advising investors on how to short the asset.



To reiterate, the above video is a spoof and is not real.

RIP Ripple

What is real, however, is the torrent of commentary from crypto industry leaders and influencers lamenting the dire situation the company now finds itself in following the SEC ruling.

Chart guru and Bitcoin bull Willy Woo kicked off another bout of crypto tribalism with these comments;

Compound Finance legal counsel Jake Chervinsky added;

“This is quite bad for Ripple. Not exactly worst case, that’d be securities fraud, but close. XRP is basically useless if deemed a security. Alleging violations through present day is a kill shot. Charging individual executives is remarkable.”

Meanwhile, Cinneamhain Ventures partner Adam Cochran noted that exchanges have started delisting XRP, beginning with the relatively obscure Beaxy exchange. He expressed surprise that bigger exchanges had not pulled the trigger first.

New York Times technology reporter, Nathaniel Popper, observed that some XRP investors and defenders now appear to be deleting some of their old tweets in support of the project.

In its feeble attempts to defend itself, Ripple accused Bitcoin and Ethereum of being ‘Chinese controlled’ to which Ethereum co-founder Vitalik Buterin responded;

“Looks like the Ripple/XRP team is sinking to new levels of strangeness. They’re claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are “Chinese-controlled”.”

Anderson Kill partner Stephan Palley took a deep dive into the lawsuit exposing how Ripple executives got fat off the profits.

XRP Price Collapses

Unsurprisingly, the XRP selloff has accelerated today with the asset dumping a further 20% over the past 24 hours.

XRP prices have dumped to $0.387 at the time of writing, losing around 40% over the past five days. Since its 2020 peak of $0.73 in late November, the Ripple token has plunged almost 50%.

Investors and retail traders alike are dropping the beleaguered token like hot rocks today.

In all likelihood, XRP will continue its retreat back to its bear market floor of around $0.20 or, in the worst case, even lower.

 

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