Ripple in death spiral – Coinbase stops trading XRP

Ripple is facing a potential disaster with XRP. Since the SEC’s announcement of action against Ripple, many of the company’s partners have bailed out, distancing themselves from XRP and in some cases withdrawing from the exchanges. The SEC has initiated proceedings accusing Ripple and BitQT initiators, Chris Larsen and Brad Garlinghouse, of selling an unregistered security and manipulating the market. No less than USD 1.3 billion is at stake.

Ripple and XRP are in trouble

The official announcement by the SEC has spread like wildfire in the community. As a result, the XRP price has plummeted and there is no end in sight. Since the peak at the end of November, the Ripple price has plummeted by more than 70%. In the Bitcoin exchange pair even by more than 80%.

The sharp drop was mainly associated with various exchanges that have withdrawn XRP for certain regions or altogether. Yesterday, the largest American exchange – Coinbase – also announced that it was halting trading in XRP for the time being. As a result, the Ripple price plummeted even further.

At the moment, it is not yet clear what lies ahead for Ripple and the two initiators. It is quite possible that a large fine will have to be paid but that XRP will not be classified as a security.

On the other hand, there is still the danger that XRP will be classified as a security. Such a decision would not only be dramatic for the further price development, but also for Ripple itself. After all, the company still lives from the regular sales of its own XRP. This would mean that the SEC would cut off Ripple’s money supply.

Ripple facing extinction?

Although the XRP ledger runs relatively independently of Ripple itself, without the company behind it, with the various software solutions where XRP is used, the XRP ledger will die in the long term or at least become increasingly irrelevant.

Without Ripple and all the partners, there is no need for a bridge currency that is highly volatile, dependent on the Bitcoin exchange rate, largely in the hands of a company and created at the push of a button. We already have more than enough of such cryptocurrencies and none of them represent a revolution or anything like it.

The dream of a global means of payment or bridge currency for international payments is currently off the table. There is little hope that the tide will turn for Ripple in the near future.

Moreover, even one of Ripple’s most important partners – MoneyGram – has distanced itself from Ripple and XRP.

Currently, one can only wait and warn all investors. There is currently little hope for a recovery in the near future. The process could drag on for weeks or months and drive the price further and further down.

As always, we will keep you up to date and inform you as soon as there is something new regarding the process.

The Digital Asset Fund I from Hauck & Aufhäuser is intended to cover 85 percent of the entire crypto market.

The German private bank Hauck & Aufhäuser announced that it wanted to offer its first crypto fund. The HAIC Digital Asset Fund I is scheduled to be launched on January 1, 2021

According to a report on FundView, this collaboration with Berlin-based fintech company Kapilendo is aimed at institutional and semi-institutional investors who want to invest in a portfolio of crypto assets, including Bitcoin ( BTC ), Ether ( ETH ) and Stellar ( XLM ) .

The fund pursues a passive investment strategy, whereby the allocation of the crypto values is based on the current market capitalization and other criteria. According to the company, the portfolio will cover 85 percent of the total market for crypto assets.

The minimum investment in the fund is EUR 200,000 and the subscription period is unlimited. The total ongoing fees for the fund are 2.05 percent of the fund volume

Kapilendo will act as a crypto depot and Hauck & Aufhäuser will be responsible for fund management. Board member Holger Sepp stated that institutional interest in crypto is growing in Germany:

„We are seeing that digital assets and cryptocurrencies are becoming increasingly attractive among institutional investors. With the launch of our first crypto fund, we and Kapilendo created an innovative investment vehicle that gives our customers inexpensive and secure access to the new crypto asset class, including the established one Meets the high quality standards and high demands of Hauck & Aufhäuser. “

As Cointelegraph reported last week , Stone Ridge’s digital assets subsidiary NYDIG recently raised $ 150 million in two crypto mutual funds.

The SEC continues to refuse to approve a Bitcoin ETF. Nevertheless, more and more vehicles are coming onto the market for institutional investors to enter the crypto market.

The growth in Bitcoin’s price has led to even haters of cryptomoney beginning to accept its importance in the market.

During its eleven years of existence, Bitcoin has been an extremely polarizing financial asset. That’s because, while those who have defended crypto currency have done so without reservation. Those who have been skeptical of its success have also been radical in their positions. However, now that cryptomoney seems to be headed for breaking the $20,000, even Bitcoin haters are beginning to join the crypt world, as Scott Melker comments in today’s Tweet:

Bitcoin’s Risk Fades, Says CoinShares Chairman

Bitcoin Haters Join the Crypto World

Already many are singing victory. After more than a decade of existence, Bitcoin is finally starting to be accepted as a financial asset all over the world. Leaving behind the fears that crypto-currency often raises in the markets. To receive millions of dollars from institutional investors like Paul Tudor Jones and companies like Square.

The growth in the price of BTC is causing even Bitcoin haters to start joining the crypto world. Source: CoinDeskThe growth in the price of BTC makes even Bitcoin haters start to join the crypto world.

The strong increase in Bitcoin’s price in the last weeks has had a lot to do with this process. It was the catalyst that allowed traditional investors to become interested once again in the operation of BTC. And, by proving the usefulness and security of crypto currency, to invest large sums of money in crypto.

This, of course, has significantly altered people’s perception of BTC. It has led even those who until now have considered themselves as Bitcoin haters, to start reconsidering their position and approaching the crypt world. In a dynamic described by analyst Scott Melker in his Twitter account:

„It has taken us years to overcome the insult of the Bitcoin haters and the legacy talking heads that protect their outdated systems and inferior assets. Now they’re lining up to kiss the ring. It’s our time. Join the movement or get out of the way.

Thus, Scott Melker’s tweet is the best representation of the empowerment experienced by the crypto world in recent weeks. As the recognition of Bitcoin’s value by large institutional players has led to crypto-users being able to directly challenge the BTC haters.