Coinbase, the main cryptocurrency exchange, will suspend XRP trading in response to the U.S. Securities and Exchange Commission taking legal action against Ripple.
According to a blog posted today by Coinbase Legal Director Paul Greval, the exchange will completely suspend XRP trading starting Jan 19 at 10:00 AM PDT. Coinbase assured that “trading can be stopped early if needed” to maintain market statistics for the exchange. Additionally, the suspension is reported to not affect the Ripple-backed Spark Giveaway (FLR), powered by the Flare Network.
“The trading suspension will not affect clients’ access to XRP portfolios, which will remain available for deposits and withdrawals after trading is suspended,” Griffal said. “We will continue to support XRP in Coinbase Custody and Coinbase Wallet.”
The US exchange is the largest to maintain an XRP position so far after announcing on December 22 that the US Securities and Exchange Commission would request Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen, “a permanent unregistered offer in digital assets …”
Earlier in the day, the crypto OKCoin announced that it would stop trading XRP and deposits from January 4th. Bitstamp said it will stop trading XRP for US residents, while smaller exchanges including OSL, Beaxy and CrossTower announced that they will take similar measures against trading tokens.
Some cryptocurrencies expect other exchanges to wait for a domino turn to remove the listing or suspend trading of XRP now that a major player like Coinbase has taken over the token.
Twitter user PratikKala said, “Soon you’ll see Kraken, Bittrex, Genesis, Grayscale and other members of the Crypto Rating Board remove it as well.” “Liquidity will dry up and the remaining producers in the Asian market will be forced to leave.”
Investing in greyscale may have distanced itself from XRP by now. According to Twitter user “ShardiB2”, the company is reportedly canceling its subscription from the XRP Trust, stating that it will not accept new subscriptions or process suspended subscriptions. The Grayscale website states, “Grayscale’s XRP Trust Issue is currently closed.”
Following Coinbase’s announcement, XRP’s price was immediately down by more than 10%, down from $ 0.28 to $ 0.25 at time of publication. This is the latest in a series of downward moves for the token, which has fallen 44% since the SEC announcement.