The TIE’s Josh Frank on XRP: „Third Biggest Breakdown Ever“
The token has lost more of its value than the former trading giant Enron.
The XRP’s market cap has fallen nearly $ 130 billion since its all-time high in 2018
The decline in the cryptocurrency project is therefore comparable to the collapse of large financial institutions.
According to Josh Frank of the crypto-focused research firm The TIE, the project is experiencing a similar breakdown as some of the biggest corporate scandals and disasters in recent history.
At its peak, XRP’s market cap was around $ 140 billion in January 2018. This recently slipped below $ 10 billion. The loss is estimated to be $ 130 billion in less than three years. That makes XRP’s „collapse“ the third largest after Washington Mutual’s $ 327 billion bankruptcy and the 2008 breakdown of investment giant Lehman Brothers, with a loss of $ 691 billion.
„It’s sad and unfortunate that the biggest losers in XRP history are private investors who have lost unimaginable amounts of money,“ Frank told Cointelegraph. „The founders of Ripple have dumped their tokens for years, making hundreds of millions of dollars.“
The US Securities and Exchange Commission Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen wants because of the implementation of an „unregistered, continuous supply of digital securities“ for their XRP sales sue .
Since this news became public, the token price has fallen rapidly
Crypto exchanges like Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy and CrossTower later announced that they would suspend trading with XRP or take the token off the platform entirely. This created additional sales pressure.
Institutional actors are also gradually distancing themselves from XRP. The Grayscale Investments website now states that the „XRP Trust’s private placement is currently closed“. A Twitter user claimed that the company was also no longer processing pending applications for the XRP Trust.
At press time, XRP is $ 0.21 after falling more than 65 percent in the past 30 days.