- Cryptocurrency XRP plunged as much as 31% on Tuesday after trading platform Coinbase said it would suspend trading by mid-January.
- Last week, the US Securities and Exchange Commission filed a complaint against blockchain company Ripple over how it sold XRP.
- XRP lost about three-quarters of its value in six weeks.
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Cryptocurrency XRP plunged as much as 31% on Tuesday after trading platform Coinbase said it will suspend the entire digital token from the market by mid-January. This followed a complaint from the US financial markets regulator against the developer of XRP, Ripple Labs.
XRP is down 28% on the day, to around $0.18, after dropping to a session low of $0.11 earlier in the day. XRP has lost about 75% of its value since hitting a two-year high in early November, when investors took advantage of the weak US dollar to build up in cryptocurrencies.
The US Securities and Exchange Commission said on Wednesday that Ripple was actually running an unregistered supply of $1.3 billion through its sales of XRP, which the regulator deemed a security rather than a cryptocurrency.
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have taken the decision to suspend the XRP trading pairs on our platform,” Coinbase said in a statement late Monday.
“Trading will move to the maximum starting December 28, 2020 at 2:30 PM PST, and will be completely suspended on Tuesday, January 19, 2021 at 10 AM PST,” the company said.
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Coinbase added that the suspension of trading will not affect customers’ access to XRP wallets and they will remain available for deposits and withdrawals.
Ripple CEO and co-founder Bradley Garlinghouse, named in the SEC lawsuit, said last week on the company’s blog that the regulator had not provided clarity to the company on whether the XRP token should be classified as a currency or a security.
Ripple was not immediately available for comment when contacted by Business Insider.