The price of XRP has dropped to $ 0.26. That marks a drop of almost 50% in the last 24 hours, according to data from CoinMarketCap.
The price of XRP began to fall on Monday when Ripple Labs, a company linked to XRP, announced that the U.S. Securities and Exchange Commission was about to file a lawsuit.
Then it fell further on Tuesday, after the SEC officially announced the lawsuit.
The suit alleges that Ripple raised $ 1.3 billion in XRP in sales of unregistered securities since 2013 – and continues to do so. Ripple has long held a large amount of XRP in its own portfolios, which it sells periodically to manipulate the circulating XRP supply, acting somewhat like a central bank. The SEC claims that such activities are illegal. The suit also named Ripple co-founder Christian Larsen and current CEO Brad Garlinghouse as defendants.
The price of XRP had settled at around $ 0.3 this afternoon, but it dropped another four cents tonight to its current price of $ 0.26.
Since the SEC announced the process, three exchanges have stopped trading the cryptocurrency and Bitwise has liquidated all of its fund's XRP. O The Block also reported today that two of the largest cryptocurrency trading desks, Jump Trading and Galaxy Digital, will no longer act as market makers for the currency.
In late November, the XRP traded above $ 0.70. Since the peak, assets have fallen by 60%.