Grayscale has sold all of its XRP holdings to purchase bitcoin, ether, and other crypto assets. In an announcement made earlier today, Grayscale made it known that the firm has sold all of its XRP tokens from the Digital Large Cap Fund.
Grayscale Sells Off All XRP Holdings
There appears to be more gloom for XRP as Grayscale Investment announced that it had sold off all XRP tokens it was holding in its Digital Large Cap Fund.
This news comes days after a report emerged that Grayscale had purchased a large number of XRP tokens at a much lower price. According to data from Cryptowhale, the firm had bought over 12 million XRP tokens on New Year’s eve.
However, in what appears to be a twist in the decision of the leading crypto investment company, the firm has now decided to totally liquidate all XRP holdings in the large-cap fund.
This decision might be connected to Genesis Global Trading, the solely authorized participant of the fund, who earlier announced that it would be suspending XRP tradings on its platform. Genesis cited the impending lawsuit between Ripple and Securities and Exchange Commission (SEC) as to why it has decided to stop trading the crypto asset from January 15, 2020.
Grayscale made it known that the proceeds from the liquidation have been used to purchase other crypto assets like bitcoin (BTC), bitcoin cash (BCH), and litecoin (LTC).
XRP Token Is Still Suffering the Effects of the Impending Litigation Against Ripple Labs
Since reports emerged that the U.S. SEC was going to be suing Ripple, the regulator alleged that the firm was offering a $1.3 billion unregistered security offering.
Due to this litigation, many crypto exchanges have started delisting the token from their platform. Bitwise, Coinbase, Binance, and a host of other major crypto exchanges have either suspended or totally stopped trading the token on their platform.
Another effect of the lawsuit is the tumbling of the price of the crypto asset since the legal issues emerged. Since then, the price of XRP has dipped below $0.20 which equates to a 70% drop.
Ripple has vowed to stand up against the SEC, noting that the allegations against it remain false and unfounded. The firm also stated that it was going to continue supporting its operations and products that were outside the United States.
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