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XRP suffers a devastating collapse today that sent its price crashing below the $0.5 mark.
The prices of various crypto assets, including XRP (XRP), took a heavy hit yesterday in the U.S. evening hours.
WSJ Claims Tether Is Under U.S. Probe
This came after leading media outlet Wall Street Journal (WSJ) reported that stablecoin giant Tether was under investigation for money laundering-related charges.
The report claimed that U.S. federal prosecutors are investigating whether malefactors have used USDT for illegal activities, including terrorist financing.
Stablecoins are special cryptos whose prices are pegged to a separate asset, like the United States Dollar (USD). While several stablecoins exist, Tether’s USDT is the most used stablecoin. It is currently the largest stablecoin, with a market cap of $120.11 billion.
XRP Slumps Below $0.5
Given USDT’s popularity in the market, any negative report about the asset is expected to have a devastating effect on other cryptos.
Like other crypto assets, XRP was not spared by the report. XRP, which was on the verge of surging above the $0.53 level, took a huge hit that sent its price crashing below the $0.50 mark.
The last time XRP traded below $0.50 was in early August during the broader market collapse. It happened again yesterday, shortly after WSJ claimed that the United States government was investigating Tether for possible violations of anti-money laundering rules.
Specifically, yesterday at 06:25 p.m. (EDT), XRP plunged to a two-month low of $0.4936. However, XRP recorded a major recovery that sent its price above $0.50 an hour later.
XRP Recovers After Tether Denies WSJ’s Report
This came after Tether’s CEO Paolo Ardoino denied the WSJ report. In a tweet yesterday, Ardoino disclosed that there are no signs Tether is under any U.S. probe. He slammed the media outlet for repeating old rumors that lack current relevance.
As we told to WSJ there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.
— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024
Furthermore, the company also issued a statement denying the WSJ report. The stablecoin giant criticized the media company for making false allegations as if they were true without offering any evidence to back up its claim.
Expectedly, Tether’s denial of the WSJ report breathed life into the market as several crypto assets, including XRP, recovered most of their losses. At the time of writing, XRP trades at $0.5141 per coin. Nonetheless, the asset is still down 2.14% over the past 24 hours.