- After Bitstamp, Coinbase became the biggest crypto exchange to halt XRP transactions
- The exchange will suspend the trading of XRP from next month
- The halt in trading will not affect the wallet, as users will be able to deposit and withdraw the token
- The announcement of halting has harshly affected the token
Coinbase, a major crypto assets exchange in the United States, has announced to halt the trading of XRP. In light of the US Securities and Exchange Commission’s action against one of the world’s most enormous fintech firms Ripple, major crypto exchanges are suspending its native token trade. According to the recent data from CoinMarketCap, we observed that the US SEC’s lawsuit had affected the third-largest token of the world by market cap to crash by more than 40%. However, XRP is now at the fourth position in the list of tokens by market capitalization.
Coinbase as the biggest exchange to halt XRP transactions
According to the announcement, it is revealed that from Monday, the trading of XRP pairs is moving into limit only. However, from next month, 19th January 2021, the token trading will be entirely suspended. Last week Bitstamp, one of the major crypto exchanges, was the first major crypto exchange to halt XRP transactions. Indeed, now Coinbase has become the major crypto exchange for halting the XRP transactions.
The suspension of trading will not affect XRP wallets
It is also known that the suspension of trading will not affect the XRP wallet, as the deposit and withdrawal of the token will remain active. On the other hand, Coinbase will also support an airdrop of Spark tokens to the token holders. From which we can conclude that the token will still be supported by the exchange’s custody and in the self-custodial wallet. According to Paul Grewal, the chief legal officer of Coinbase, the exchange will remain to monitor the legal status of XRP and update their users accordingly.
Effect on Ripple with the suspension news?
As Coinbase announced about the halt of trading, within twenty minutes, the price of Ripple’s token tanked by 14.28% to $0.24 from $0.28. At press time the price has tanked by more than 21% to $0.22. However, since the US SEC’s action, the price has been tanked by more than 50%. According to Coinbase, the reason behind the dropping of XRP is the exchange’s plan to go public. As Coinbase is planning to go public, being a platform for something that can be considered as security would mean adding more paperwork so retail investors could trade legally.
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