Coinbase is one of the biggest cryptocurrency trading exchanges that allow its users to securely and comfortably trade cryptocurrencies. Trading is done in huge volume through the Coinbase of cryptocurrency, making it one of the leading exchanges. Coinbase announced through an official blog post that it is restricting the trade of XRP from today. It is not all because the complete suspension of all services related to XRP will be implemented on the 19th of January in the coming year.
Coinbase have provided people with the reason that Security and Exchange Commission has filed a legal case against this cryptocurrency’s creator. Due to this legal allegation, people no longer wish to purchase more of this cryptocurrency. Once a complete suspension of service is related to this cryptocurrency is implemented, no one will be able to trade on XRP through Coinbase. Various cryptocurrency exchanges have previously announced to stop the trading of XRP. Coinbase is the leading exchange in US concerning the trade volume.
Coinbase has determined that at least the near future of XRP is not bright. This suspension is going to not just decrease the sales of this cryptocurrency but it is also going to damage its reputation in the market for being a reliable asset. You can understand the damage caused to the owner of the cryptocurrency by understanding that now XRP is a product that no retail stores wish to showcase or sell.
SEC filed a legal suit against the owner of this cryptocurrency. They claimed that their product is a security and must be regulated under a security asset’s guidelines. According to this claim, the owner and CEO of Ripple Labs must provide the government with additional information related to XRP. This information is required before someone becomes an investor in the security assets. The Ripple Labs have a different opinion. According to the claim of Ripple Labs their cryptocurrency is actually a currency. Therefore, US Security and Exchange Commission have nothing to do with that as it does not fall under their jurisdiction.
The impact is huge; keeping in view that it has resulted from a simple lawsuit announcement. This has impacted the Ripple Labs concerning their reputation and the market value of their cryptocurrency. If the company wins the case, the value is likely to rise up, but it will take time for the exchanges to remove service suspension. Therefore irrespective of the results of the case, the company will face a significant loss of potential buyers and investors during it.