Grayscale Investments, one of the massive digital asset management firm, has taken a drastic move in the latest announcement. It has created apprehensions about the future status-quo of XRP. With the SEC levying official charges against XRP’s unregistered security sale, things have seemed to be a bit challenging for XRP’s parent company, Ripple. Recently, The U.S SEC charged Ripple labs and two of its executives, creating an uproar in the crypto space. Therefore with today’s announcement, Grayscale Investments plan to liquidate one-third of its stake. It totals up to 9 million XRP in Ripple Labs.
This news does not emerge as a surprise with the ongoing occurrences in the crypto industry. Several prominent exchanges like Bitstamp, Bittrex, OKCoin, and others have suspended the trading services of XRP for its users. This has resulted in cornering XRP considering the SEC’s side of the story. This potential dump from Grayscale would further cascade the XRP’s price downwards, posing potential loss to retail investors.
Moreover, Grayscale serves accredited and institutional U.S. investors; this is an SEC complaint. Therefore delisting XRP for Grayscale’s business comes in handy as it is legally compliant to discard XRP even if it’s deemed security. Ripple CEO Brad Garlinghouse believes that XRP should be considered similarly to Bitcoin and Ethereum, under the purview of digital currencies. However, the U.S. SEC is keen on its decisive move, therefore, disagrees. Also, Grayscale is continuously pumping its cryptocurrency investments to offer high-returns to its shareholders.
Various concerns to target Ripple’s XRP
With the SEC’s decisive move of charging Ripple Labs, its native token XRP witnesses price fluctuations representing a downward trend. This advocates a massive dump that the XRP market is currently undergoing. It also reinforces that the market is instilled with fear and anxiety relating to XRP’s future. Furthermore, crypto exchange giants like Coinbase are under regulatory purview to sell unregistered securities such as XRP.
Conclusively, the First Pretrial Conference concerning the U.S. SEC and Ripple is declared on 22nd February in the New York Southern District Court.
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