Last hope for XRP? – Ripple Labs has experienced a veritable descent into hell since the Securities and Exchange Commission (SEC) labeled its XRP token as a security. In order to turn the situation around one last time, the community grouped around the interbank token has launched a petition to the White House.
After the SEC, one of the 2 main US financial authorities, launched its lawsuit against Ripple Labs and 2 of its executives (Christian Larsen and Bradley Garlinghouse), it didn’t take long for defections to multiply catastrophically among crypto stock exchanges.
Coinbase, Bitstamp, Crypto.com, and even the Bitcoin Freedom fund at best paused and at worst purely withdrew XRP from their services.
Since the SEC’s announcement just before Christmas, the price of Ripple’s interbank token has literally collapsed, hitting a new low of $0.17 on December 29th, before stabilizing in recent days at around $0.21. The price of the token has also been on a downward trend since the SEC’s announcement.
Faced with this debacle, a petition has just been launched by XRP investors on the White House site.
This petition asks the President of the United States to override the classification of XRP as a security by the SEC and to consider the token as a currency instead:
„The Securities and Exchange Commission is responsible for protecting investors in US securities. However, it has filed a frivolous lawsuit claiming that the XRP token (…) is a security. As a result of this lawsuit, the $40 billion market for this currency is rapidly collapsing as companies struggle to remain compliant. Billions of dollars are suddenly being wiped out of the market (…). The SEC’s complaint is detrimental to the holders of XRP and must cease immediately (…).
The total capitalization of XRP has indeed fallen so dramatically that it has dropped to just over $10.5 billion, which could relegate Ripple’s token to fifth place in the CoinMarketCap, behind Litecoin (LTC).
It is not clear whether the President of the United States will address the problem in the coming weeks or months, but the Ripple community had to try this last resort. The legal battle against the SEC promises to be long, costly and uncertain. In the meantime, one trading platform after another is running away from the sinking XRP ship.