Revolut warned clients that XRP, which was previously the third largest cryptocurrency by market capitalization, may become worthless.
The warning comes two weeks after the US Securities and Exchange Commission (SEC) charged blockchain company Ripple with $1.3 billion (€1.06 billion) in unregistered securities.
The value of XRP has plummeted in recent weeks with the announcement. The cryptocurrency, which often moves in tandem with bitcoin, jumped in November to reach its highest level since 2018, as the cryptocurrency’s rally accelerated. However, it has since lost more than half its value, while on Sunday bitcoin hit a new all-time high above $34,600 on the same day the leading cryptocurrency celebrated its twelfth anniversary.
XRP was trading at $0.25 on Tuesday, down from a close of $0.55 the day before the Ripple fee was announced.
In a note sent to clients, Revolut warned that while XRP can still be bought and sold on its platform, some exchanges have started deleting the cryptocurrency.
She said that the price of XRP has been volatile and that if one of its partner exchanges decides to delist the coin, it may have to follow suit.
“We may also have to stop trading with very short notice if liquidity decreases on our partner exchanges and we can no longer buy or sell XRP. This may mean that you may not be able to sell your XRP balance and you may be stuck in a waiting position which may drop When the price is down to zero, in a worst-case scenario,” Revolut said.
Currently fintech does not offer a service to allow users to withdraw their XRP balance to an external wallet. She said that although she will try to provide advance notice if she should suspend the sale and purchase of the currency, she may not be able to do so.
“It is important that you constantly re-evaluate your crypto holdings, specifically XRP, and whether you remain comfortable with the associated risks,” Revolut said. “In particular, it’s a good idea to check your buy and sell orders regularly — including frequent buys and auto-exchanges you may have set up — to make sure you’re still as happy with them as the time you set them up.”
The company, which has 1 million customers in the Republic of Ireland, said it will continue to monitor the situation with Ripple and the responses made by its partner exchanges.
Revolut users acquired $120 million worth of cryptocurrency in 2019, a 152 percent increase over the previous year. The company first started selling access to cryptocurrencies in 2017 with the backing of bitcoin, either and litecoin.