The legal fight between the United States Securities and Exchange Commission (SEC) and the remittance payments firm Ripple has resulted in the collapse of XRP, the native crypto token of Ripple. It has seen the worst of worst over the course of the past few days as it has been slammed by various top cryptocurrency exchanges that have announced to stop providing trading services for the fourth-ranked digital currency. Looking at this worst situation of XRP, an executive of a research firm has regarded this collapse of XRP as one of the biggest collapses of all-time.
The Third-Largest Collapse Of All-Time
The Chief Executive Officer (CEO) of the cryptocurrency-centered research firm The TIE Josh Frank has said in a tweet that he views the current collapse of Ripple’s XRP as the third-largest collapse of all time. According to him, the market capitalization of XRP has decreased down by approximately 93 percent from the figure of $137 billion to the current value of $10 billion. Based on this loss of value, Frank has called the coin’s current situation the third-biggest collapse of all-time.
Josh Frank said that this collapse of the value of XRP is even bigger than that of the commodities trading firm Enron and Worldcom. In terms of the loss of value, it is now only behind two big companies, the investment firm Lehman Brothers and Washington Mutual.
XRP’s market cap has fallen by 93% from $137B to under $10B. That makes the value of the XRP collapse bigger than Enron and Worldcom.
While not a bankruptcy, XRP is effectively the third largest collapse of all time behind Lehman Brothers and Washington Mutual.
— Joshua Frank (@Joshua_Frank_) December 30, 2020
The collapse of XRP began one week ago when the Securities and Exchange Commission filed a $1.3 billion lawsuit against the blockchain payment giant Ripple. This news took no time to go viral. Following the news, various digital currency exchanges started ditching XRP. Many of them have even distanced themselves from the remittance coin so far, including Coinbase, Binance US, OKCoin, Bitstamp, eToro, and some others.
This caused the downfall of the price value of XRP, which fell down quickly. Within no time, the price of XRP went down below $0.20. Reportedly, XRP’s value has lost over 65 percent within the duration of the last thirty days. At the press time, however, it is slightly up by more than 7 percent in the last 24 hours while trading at around $0.23. On a weekly basis, it is still down by nearly 30 percent.