Grayscale has sold all of its XRP holdings to buy bitcoin, ether and other cryptocurrencies. In an announcement made earlier today, Grayscale revealed that the firm has sold all of its XRP tokens from the Digital Large Cap Fund.
Grayscale sells off all XRP holdings
There seems to be more gloom for XRP because Grayscale Investment has announced that it has sold all of the XRP tokens it owns in its Digital Large Cap Fund.
This news comes days after a report appeared that Grayscale had purchased a large number of XRP tokens at a much lower price. According to data from Cryptowhale, the firm bought more than 12 million XRP tokens on New Year’s Eve.
However, in the decision of the leading crypto-investment firm, it appears that the firm has now decided to liquidate all XRP shares in the large-cap fund.
This decision may be related to Genesis Global Trading, the exclusively authorized participant of the fund, which had previously announced that it would discontinue XRP transactions on its platform. Genesis cited the looming lawsuit between Ripple and the Securities and Exchange Commission (SEC) as to why it decided to trade the crypto-asset from January 15, 2020.
Grayscale made it familiar that the proceeds of the liquidation were used to buy other crypto-assets such as bitcoin (BTC), bitcoin cash (BCH) and litecoin (LTC).
XRP Token still suffers from the consequences of the impending lawsuit against Ripple Labs
As rumors have surfaced that the US SEC is going to sue Ripple, the regulator claims that the company is offering an unregistered security offer of $ 1.3 billion.
As a result of this lawsuit, many crypto exchanges started removing the token from their platform. Bitwise, Coinbase, Binance and a number of other major crypto exchanges have suspended or discontinued the token on their platform.
Another effect of the lawsuit is the tumble of the price of the crypto-asset since the legal issues emerged. Since then, the price of XRP has fallen below $ 0.20, representing a 70% drop.
Ripple has vowed to stand up to the SEC, noting that the allegations against it remain false and unfounded. The firm has also stated that it will support its operations and products outside the United States.
What do you think of the sale of XRP stock in the gray scale of the Digital Large Cap Fund? Let us know what you think of this topic in the comments below.
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