Two crypto firms, specifically Galaxy Digital and Jump Trading, have said goodbye to XRP.
The trading desks confirmed that they stopped making markets in XRP after Ripple’s infamous lawsuit. Yesterday, the US SEC filed a $1.3B lawsuit against Ripple Labs, the company connected with XRP.
Aside from the above-mentioned exchanges, three exchanges stopped trading the cryptocurrency and the token’s price have dropped, and bitwise liquidated all XRP from its fund.
Making markets means providing liquidity to exchanges.
The Block stated that Galaxy will not trade the asset until “facts become available.”
Galaxy is a principal New York-based crypto investment firm led by billionaire Bitcoin Bull, Mike Novogratz. It handles over $400M in assets.
Jump Trading is a quantitative trading firm that trades with millions of dollars in crypto.
XRP is now the fourth biggest cryptocurrency by market cap. But because of its legal troubles, its price and market dominance has dropped.
The SEC alleged that Ripple Labs raised $1.3B in unregistered securities offerings since 2013.
XRP Plunges Deeper
XRP is sinking lower as the crypto market continues to exit XRP seemingly connected to the SEC news.
The cryptocurrency is now down to 40% in the last 24 hours. The coin reached lows that haven’t been seen in the previous months, pushing to a market cap of $11B.
Analysts speculate that XRP will drop even lower because of the lack of bullish catalysts. Messari CEO, Ryan Selkis said:
The lack of marketing can result in stronger moves lower as liquidity leaves, disallowing sellers from getting in their orders without transacting with the market.