Grayscale Allegedly Dumps Over 9 Million XRP Following SEC Lawsuit Against Ripple
Top digital asset management firm Grayscale has allegedly dumped more than 9 million XRP from its portfolio following the SEC lawsuit against Ripple. According to a snapshot of the Grayscale investment holdings page, the XRP was sold on 29 December 2020. This coincides with when XRP crashed below $0.2.
XRP has experienced a steep drop in the last one week after the SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse, and Co-founder Chris Larsen. The suit claims that the company and the two executives have been selling securities to investors in an unregistered ICO. This has led to several actions that have not worked out in XRP’s favor.
Delisting could affect XRP greatly
Several exchanges have stopped trading the 4th largest cryptocurrency by market capitalization. The exchanges include Coinbase, Bitstamp, and OkCoin. This could have contributed significantly to XRP’s crash that many say was long overdue.
Grayscale selling a big chunk of XRP held in its XRP fund is however a major development that could further worsen the situation with XRP. The platform is the largest digital asset management platform with many institutional and individual clients. Grayscale has been buying Bitcoin and Ethereum aggressively this year and seems likely to continue as more investors troop to crypto.
Such a platform selling XRP could be devastating and could lead to investors losing confidence in the asset eventually. Ripple CEO Brad Garlinghouse had earlier this year stated that Ripple would move its headquarters to London where XRP is not considered as a security. In a series of tweets, he also stated that the SEC lawsuit isn’t just a fight against Ripple or XRP but it was a fight against the entire cryptocurrency space.
Crypto-related startups have been complaining about the lack of clear regulations for the crypto industry in the U.S. This is supposedly the reason that crypto exchange Bittrex and a number of others have left the country for other countries that are more friendly to the crypto space. There is no ruling on the suit yet but XRP is already greatly suffering. The asset currently trades at $0.21 having dropped another 10.22% in the last 24 hours.