• Tue. Oct 3rd, 2023

Another Upset For Ripple As Coinbase & Okcoin Suspend Their XRP Trades

Dec 31, 2020

More upsetting news for already depressed Ripple as two of the major crypto exchanges of the world suspend their XRP trading. The rationale behind the suspension of XRP trade is due to the filing of a lawsuit by the SEC against Ripple.

 Circumstances had started to become more severe and difficult for Ripple as two of its major traders suspended XRP trading.

It was confirmed that Coinbase and Okcoin – which had been two of the world’s largest crypto exchanges – had to suspend their XRP trading. This had been a major upset for Ripple who already had been finding it difficult to save their business. Both crypto exchanges had been the major source which were contributing in the high trade volumes for Ripple’s XRP.

In the week beginning on 28th December, it was Okcoin which announced firstly that it had suspended XRP trading at their platform. Okcoin also informed that the suspension of XRP trade and deposit will be implemented on the 4th of January, 2021.

Okcoin also informed customers that they should return the value which they had borrowed on the basis of margin pair of XRP-USD. In order for the customers to return the borrowed value, a time limit had also been imposed. The customers had been required to return the value on or before 3rd January 2021. On 4th January However, all types of XRP trading (margin and spot) as well as XRP deposits will be automatically suspended. Okcoin clarified that at the end of the expiry period it wouldn’t take any responsibility if any loss occurred to customers.

Okcoin also advised its XRP traders to closely monitor the progress of the dispute between Ripple and the Securities & Exchange Commission. But the dispute might take considerable time before it could reach an amicable resolution between the two, told Okcoin.

After Okcoin, the other major crypto exchange that suspended its XRP trading was reported to be Coinbase. It was officially announced by Coinbase after Okcoin’s announcement that the circumstances had forced Coinbase to suspend XRP trading. Similarly, Coinbase too had urged its XRP traders to return the borrowed money as had been required by Okcoin. However, the deadline had been set as 19th January, 2021.

Coinbase’s Legal Head, Paul Grewal, also clarified that during this time period customers would be allowed to access their wallets containing XRP. The suspension will not curtail their right to access their digital wallets in any case, he explained. However, upon the expiry of the deadline, Coinbase would restrict customers’ access to their XRP wallets as well, added Grewal.

Meanwhile, on 22nd December, US Securities & Exchange Commission had instituted a lawsuit against Ripple and its executives/employees. Since then Ripple had been facing hardships which it hadn’t ever faced before. Currently, it seemed as if business of XRP had been narrowing down systematically as many of its partners had been drifting away.

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