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XRP Massively Falls Amid New Lawsuit Claiming The Digital Asset Is An Unregistered Security

ยท in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

XRP, the third largest digital asset in the market, is currently experiencing a massive fall of almost 10% in the last 24 hours. This is according to data provided by CoinMarketCap, in a day in which digital currencies are operating with large price losses. The virtual currency has dropped under its long-term support of $0.28.

XRP Falls 10% 

XRP is not experiencing a good day and other digital currencies either. Bitcoin (BTC) is falling 6.52%, Ethereum (ETH) 9.05% and XRP 9.56%. This comes in a moment in which Ripple is being affected by a new amended complaint regarding XRP being considered a security. 

The U.S. Securities and Exchange Commission (SEC) didn’t clarify whether XRP is a security or not. The new filing argues that investors were misled by Ripple’s promotion of the XRP digital asset. 

According to Yahoo! Finance the case is a year old and has not received the “class-action” status. Ripple has now an entire month to file its response, making it the first filling to which the firm has to respond to address the facts of the case. 

The complaint was filed back on August 5 and it includes new arguments against the digital currency and it may be the first federal case that cites the SEC’s guidance for applying existing law and regulation to cryptocurrencies. 

Jake Chervinsky, general counsel at Compound Finance, commented about it:

“That filing will be the first time in the already-long history of this litigation that Ripple will substantively respond to the allegations around XRP.”

Chervinsky went on saying that the complaint claims that the XRP digital asset is a security under federal and California state law. Ripple has been working in order to avoid XRP being considered a security, which would cause trouble to the company and the whole crypto market.

At the time of writing this article, XRP fell under $0.28  a very important level that worked as support for the digital currency in many different moments in the past. Furthermore, XRP reached the lowest price since December 2017, meaning the bear market is not over for this virtual currency. 

It is also worth mentioning that cryptocurrencies tend to behave in line with Bitcoin. The whole market fell as well due to a selloff made by PLUS token, the biggest Chinese PONZI that scammed over 70,000 BTC and 800,000 ETH.

https://twitter.com/DoveyWan/status/1161686134314848256?s=20

The price of XRP has been severely affected by this situation, reaching $0.237 per coin a few hours ago. Now, XRP is being traded close to $0.269 and it has a market capitalization of around $11.42 billion. 

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