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Ripple’s XRP is still facing the fallout of the suit filed against Ripple by the US Securities and Exchange Commission (SEC). Coinbase and OKCoin have joined other exchanges to halt XRP trading on their platform. According to an official announcement, Coinbase said it will be suspending all trades of XRP on the exchange.
As the largest cryptocurrency exchange, Coinbase’s suspension of XRP trading will have a massive effect on the cryptocurrency. Some crypto enthusiasts are already having doubts about the cryptocurrency.
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Even if Ripple wins the case against Ripple, many observers believe the damage to the reputation and future of the coin may have been done.
Coinbase wallet for XRP still offered
Coinbase said there are few restrictions placed on trading XRP, but the exchange is planning a full suspension by January 19.
According to Coinbase, XRP trading needs to be suspended to maintain the exchange’s market health metrics.
However, customers will still have access to XRP wallets, as it will be available for both withdrawal and deposit functionality. The exchange said even after the suspension, XRP will still be supported on Coinbase Wallet and Coinbase custody.
OKCoin halts XRP trading
On a similar note, another crypto exchange OKCoin announced its suspension of XRP trading the same day.
OKCoin revealed in a blog post that the suspension of XRP trading is the “best course of action” following the recent SEC lawsuit against Ripple. As a result, OKCoin has directed that users who borrowed XRP/USD on the platform should return the borrowed amount before January 3.
The suspension will take place within two days, with the suspension of margin trading, spot trading, and deposits for XRP coming the second day. “We will proactively inform our customers when we have information that may change our position,” the OKCoin blog post reads.
More exchanges could halt XRP trading
Since the news about the SEC lawsuit broke, XRP’s price has dropped considerably, shedding over 36% within the past week.
Some exchanges started dropping off XRP from their platform as soon as the SEC lawsuit was announced. Exchanges like CrossTower, Beaxy, and OSL have all cut ties with Ripple’s XRP.
The more worrying thing is the fact that more exchanges may suspend XRP trading in the coming days.