Ripple’s XRP, currently the fourth biggest cryptocurrency by value, according to CoinMarketCap, is fighting for its life.
XRP, the digital token controlled by the San Francisco-based company Ripple, has lost half its value in the last 24 hours, going into free fall after the U.S. Securities and Exchange Commission (SEC) said the token had been illegally marketed to retail customers.
Now, as a number of minor cryptocurrency exchanges remove XRP from their platforms, traders and analysts are questioning the future of XRP—with one long-time critic calling it “the beginning of the end.”
“I think it is the beginning of the end,” said Frances Coppola, a financial analyst and commentator who has publicly criticized the company and the XRP token in the past. “Investors are already dumping XRP as quickly as they can.”
The XRP price, after soaring through November on the back of a hotly-anticipated new cryptocurrency giveaway, has crashed from $0.64 to $0.30 in under a week as traders and investors process the news.
Earlier this week, Ripple’s chief executive Brad Garlinghouse revealed the SEC had filed a lawsuit against the company arguing the XRP token is a tradable asset, known as a security, and as such is subject to its regulations. The lawsuit alleges that Ripple has raised $1.3 billion in unregistered securities offerings since 2013.