XRP has plummeted by more than 70% in a month after being officially delisted by Coinbase and other exchanges. When will it be the time to buy the dip?

Original title: "Ripple's darkest moment? Coinbase and other exchanges officially announced that they will remove XRP"

Introduction:

On December 23, the U.S. Securities and Exchange Commission (SEC) announced that it had filed a lawsuit against Ripple, Ripple board member & CEO Brad Garlinghouse, and Ripple co-founder Chris Larsen, accusing them of conducting unregistered securities sales of up to $1.3 billion.

The SEC believes that Ripple violated U.S. federal securities laws when selling XRP. Among them, Garlinghouse and Larsen also sold unregistered XRP totaling up to $600 million.

On Christmas Day of 2020, Ripple ushered in its "darkest moment" in more than 10 years since its establishment.

Bitstamp and Coinbase officially delist XRP

On December 26, Bitstamp stated that in view of the US SEC's claim that XRP is a security, Bitstamp will suspend XRP trading for all US customers on January 8, 2021. According to statistics from Messari founder Ryan Selkis, from the beginning of the year to date, XRP trading volume on Bitstamp accounts for 18%, ranking first.

On December 29, OKCoin announced that it would suspend XRP trading on January 4, 2021. OKCoin stated that this decision was made based on the recent lawsuit filed by the US SEC against two Ripple executives.

On December 29, Crypto.com announced that it would delist XRP at 18:00 on January 19, 2021. Subsequently, US customers will not be able to deposit XRP on Crypto.com, but withdrawals will not be affected.

On December 29, Coinbase said that in view of the lawsuit filed by the US SEC against Ripple, trading will enter limit orders starting at 6:20 am Beijing time on December 29, and XRP trading will be completely suspended at 2:00 am Beijing time on January 20. The suspension of trading will not affect customers' access to XRP wallets, and XRP will continue to be supported on Coinbase Custody and Coinbase Wallet. Statistics show that from the beginning of the year to date, XRP trading volume on Coinbase accounts for about 8%, ranking second.

Possible next script

Next, it is likely that other US compliant exchanges such as Kraken will also announce the delisting of XRP in accordance with the US SEC's lawsuit. Statistics show that from the beginning of the year to date, the XRP trading volume on Kraken accounts for about 5.5%, ranking third.

At the same time, it is highly likely that the US SEC's lawsuit against Ripple and two core executives will eventually end in a settlement in the form of a fine of more than US$100 million paid to the US SEC.

In a less likely scenario , Ripple and two executives may take a tough stance and choose to leave the United States, placing Ripple's business headquarters in Japan in Asia or the United Kingdom in Europe to escape U.S. regulation.

XRP plummeted by more than 70% in a month. When will it bottom out?

Over the past month, XRP has fallen from a high of $0.78 to the current level of around $0.22, with the maximum drop exceeding 70%.

Over the past three years, the highest price of XRP was $3.3, which occurred on January 4, 2018, when the price of Bitcoin was $14,960. The lowest price was $0.10, which occurred on March 13, 2020, when Bitcoin also plummeted to $3,800 due to liquidity problems in the encryption industry.

For most ordinary investors, the biggest concern is when to buy the bottom of XRP?

Earlier, Messari CEO Ryan Selkis tweeted that XRP is expected to fall below $0.10 by mid-January. In the view of BoChain Finance and Qianba Capital, the probability of this happening is extremely low.

The exchanges that have officially announced the delisting are mainly compliant crypto exchanges in the United States. Exchanges in countries with prosperous crypto industries outside the United States, such as China, Japan, and South Korea, have not had strong demands to delist XRP. Excluding the stablecoin USDT, in most cases, XRP still ranks third, second only to Bitcoin and Ethereum, in terms of both trading volume and market value.

XRP's current price of $0.22 has, in most cases, reflected the pessimistic expectations of the US SEC suing Ripple. Therefore, BoChain Finance and Qianba Capital believe that it is time to participate and buy XRP. Next, XRP may continue to fall with the fluctuations of the entire crypto market, but the decline will be limited.

It is worth mentioning that we generally do not encourage ordinary investors to participate in contract trading, because from a game theory perspective, the long-term rate of return is not high for most participants.