Behind the SEC’s accusations and Ripple’s declassification on exchanges

Bitcoin has reached record highs on an ongoing basis, and the entire money circle is engulfed in the excitement of the boom in the industry. Just this virtual currency unexpectedly met the “black swan” in the past week and has experienced a number of declines.

There was an accident at Ripple (XRP), which was once commonly positive by people in the currency circle. The US Securities and Exchange Commission (SCE) accused Ripple a week earlier of marketing unregistered securities to US and foreign investors on December 22. Affected by this, Ripple’s price plunged, dipping once to $0.25. Several virtual currency exchange sites announced the cessation of Ripple trading in the days that followed. Affected by this, Ripple’s price plunged to $0.17 again. On December 30, Ripple was quoted at $0.21 as of 19:10, the most recent decline of 2.17 percent.

Ripple, which had grown from $0.28 a month ago to $0.76 a month ago, increased by 171.43 percent in a week, but in December, it abruptly experienced an avalanche crash.

Judging from the basic timeline, since December 18, Ripple has changed its identity. A Beijing Business Daily reporter noted that Ripple changed its multi-day upward trend on December 18, according to the global currency price website CoinMarketCap, and its price dropped from $ 0.64 on December 25 to a low of $ 0.25. The price dropped by 60.94 percent within a week; Ripple fell again from its peak point of US$0.37 on the 25th following a brief upward movement, declining all the way to US$0.17 on December 30, with a decline of 54.05 percent within five days.

Ripple was quoted at $0.21 as of 17:50 on December 30, a 24-hour decline of 12.8 percent .

The serial decline is not unsubstantiated. A Beijing Business Daily reporter noted that the official website of the SEC reported the accusations regarding Ripple on December 22, saying that it had lodged a complaint against Ripple and its two executives, accusing them of transferring an unregistered, ongoing defense of digital properties. More than $1.3 billion was raised by the offering. The two executives, according to the SEC’s indictment, are Ripple’s co-founder, Christian Larsen, the chairman of the board and former CEO, and Bradley Garlinghouse, the new CEO of the firm. Affected by this, Ripple’s price fell dramatically, dipping once to $0.25.

Ripple begins his shock wave. Many exchanges have replied after being accused by the SEC. On 29 December, for example, the virtual currency exchange Coinbase reported that, in view of the measures taken by the SEC against the issuing firm Ripple, Coinbase had agreed to suspend trade in Ripple XRP.

Relevant transaction caps will be enforced between the afternoon of 28 December 2020 and January 2021. On the 19th, trade was absolutely suspended. In addition, another exchange, OKCoin, has announced that, before further notice, it would halt Ripple trading and deposits on January 4, 2021.

OKCoin also mandates that consumers who have previously borrowed Ripple to repay the borrowed margin by January 3, 2021, in addition to halting Ripple trading and deposits. The exchange said that if it is not overdue by the user, it would cause the device to clear the loan to cancel the loan deal.

Ripple plunged, making the whole circle of currencies sigh. Yet it still satisfies expectations in the eyes of some business insiders. Supervisory acts will trigger a huge market shock, particularly virtual currencies such as Ripple, which are more likely to drive a chain reaction in a negative shock, triggering a series of declines,”Supervision actions will cause a huge market shock, especially virtual currencies such as Ripple, which are more likely to drive a chain reaction in a negative shock, causing a series of declines.”