Ripple Lab’s crypto, XRP seems to be suffering quite heavily, as the crypto experienced another setback when it saw its price fall by a whopping 20%. This event occurred after it was hinted by the US Securities and Exchange Commission (SEC) that they were planning on initiating a legal battle against Ripple. The company and its top executives have been accused by the SEC of deceiving their investors about the security structure of their crypto token. In terms of market value, XRP is currently the world’s third-largest cryptocurrency, but such price dips can ruin its position.
It appears that the SEC is bringing about a lawsuit against the company for not getting approval from the authorities before it sold more than $1 billion worth of XRP. These current troubles for Ripple have apparently had an impact on the XRP and resulted in a fall in its value. The token shed off around 20% of its value within a matter of 24 hours, which was categorized as the token’s biggest lost since the beginning of the year. On the other hand, Bitcoin appears to be gaining momentum, after it had dropped back to the $20,000 level a couple of days ago.
However, Bitcoin has gone on a roller coaster ride in the last few days before it ended up hitting a new all-time high of $24,300. It is still hovering near the $24,000 threshold and market sentiment for Bitcoin, as well as other cryptocurrencies, has remained quite strong, as most of the altcoins have maintained their stability. The only token that seems to be going in the opposite direction for now is XRP and according to experts, this negative movement is mostly because of the regulatory issues that are plaguing the company. A lot of XRP holders are willing to give up their stake right now and do not want to wait until the lawsuit and scrutiny by the SEC begins.
As the certainty of the XRP token hangs in the balance, a number of investors have decided to get rid of their XRP holdings while they still can. According to market observers, this move by the investors has prompted a low demand for the crypto, thereby affecting its price. In the same 24 hour scale, a lot of altcoins were able to maintain their stability, whereas Bitcoin was able to gain some momentum and XRP suffered from losses. Binance and Polkadot also increased to $33 and $5, respectively, whereas Ethereum reached a value of $616.
However, the highest gains that were seen in the top ten cryptocurrencies were in Litecoin. It reached the price of $110, which is an increase of 8.7%. Cardano and Bitcoin Cash have also lost some momentum. The highest gain that have been seen so far is in the case of Theta, which increased by 12% to become an asset above the value of $1.1 million. Some of the other gainers in the same 24 hour period included Kusama, NEM, Monero, Nexo, THORChain and MaidSafeCoin.