The list of digital exchange companies who have suspended XRP trading continues to grow exponentially following OkCoin’s decision to stop its users from trading and depositing XRP. According to a digital exchange platform statement on Monday, OkCoin is set to exclude XRP trading from its operation beginning from January 4 next year.
This decision was made due to the SEC’s ongoing lawsuit (Securities and Exchange Commission) against XRP’s makers, Ripple Labs Inc., and some of its major high-ranked members. SEC alleged that the XRP producers are involved in illegal fundraising of approximately $1.3 billion through unrecorded ongoing digital asset securities donation.
The lawsuit documented by the SEC on December 22 against Ripple had successfully compelled top-ranked digital exchange platforms and asset management firms to take similar actions. Beaxy Exchange; CrossTower; OSL Jump Trading; Galaxy Digital; B2C2; Bitwise; 21Shares; Bitstamp and Simplex have all charged their customers to desist from making transactions with XRP.
OkCoins wants a swift response from Customers
As a result of the latest development, OkCoins has ordered users to make all the needed alterations to their wallets before January 4, 2020. The well-known exchange company instructs that the amount of value rented or borrowed from the XRP/ USD margin pair should be refunded by all concerned users latest 1900 PST on January 3.
In the same vein, spot trading, margin trading, and deposits will be unavailable starting from the fourth (4th) of January until Ripple Labs Inc. is free of every legal charge. OkCoin won’t be the last platform to take this route as it is believed Coinbase is presently considering other options. Just as Coinbase, many crypto exchange platforms — including Binance.US, Bittrex, Coinbase, and Kraken — are equally expected to suspend XRP trading in coming days if Ripples Labs Inc. couldn’t prove its innocence.
TradingView data shows XRP’s price continues to crash
Since the start of the lawsuit, XRP hasn’t been doing too well, as TradingView data reveals. On Monday, December 28, XRP traded at $0.2794 on Coinbase, recording a 1.02% decrease rate compared to what was recorded two days ago.
Meanwhile, Bybt has reportedly liquidated XRP future contracts worth millions of dollars. Top investors are equally reluctant to support the Ripple as we speak because they are considering other alternatives. As it stands, the SEC lawsuit currently poses a great threat to the future of the digital asset unless there is a quick turnaround.
Retired SEC official Joseph Grundfest believes SEC’s decision to initiate action against the Ripple will cause more harm to XRP holders because no investors will be willing to take the risk involved in trading with the digital currency. He equally predicted a very sharp decline in XRP value in the nearest future.