It was just a few weeks back when the Securities and Exchange Commission said it is planning to take legal action against XRP. Right after the announcement, cryptocurrencies from all around the world started the actions on XRP as they felt necessary.
Although the CEO of XRP did assure the entire XRP community that they will prevail against SEC, yet the network has failed to gather support from its followers. As of now, Ripple (XRP) is experiencing the worst time it ever did with respect to its adoption and price.
In light of the events surrounding XRP, its market capitalization has experienced a fall of around $130 billion. With this fall, the cryptocurrency asset has marked its name among the financial institutes that faced the same kind of demise.
Following Ripple’s market capitalization demise, Josh Frank decided to make a comment about XRP’s current downfall. Josh Frank from TIE, which is a crypto-focused research company, stated that XRP is currently facing the same situation as major financial institutions. He said that XRP’s current demise is comparable to that of the biggest catastrophes and corporate scandals in recent history.
Josh Frank stated that as per sources, XRP’s market capitalization before SEC’s announcement was $137 billion. Following the lawsuit announcement made by the SEC, XRP’s market capitalization has dropped by 93% and is currently sitting at $10 billion.
Frank stated that XRP’s current capitalization demise is even bigger than what Worldcom and Enron had faced. He also stated that although XRP has not gone bankrupt, yet it is the third-largest collapse of all-time behind Washington Mutual and Lehman Brothers.
It was back in 2018 when Ripple observed its all-time high market capitalization. The cryptocurrency firm’s market capitalization back in January 2018 was roughly around $140 billion. After the recent fall, the cryptocurrency is now below the mark of $10 billion. With the recent loss to its market capitalization, in total, the crypto-asset has lost $130 worth of its market capitalization since 2018.
The collapse of XRP is only behind the demise of Washington Mutual and Lehman Brothers that currently reside at the top. As far as Washington Mutual is concerned, the financial giant had filed bankruptcy for $327 billion. While it was Lehman Brothers that filed bankruptcy for $691 billion back in 2008.
Frank also shared his sorrow for the stakeholders that have taken the most amount of damage from XRP’s collapse. He stated that it is the individual investors that have faced the most amount of loss with XRP’s demise. These investors have lost an unimaginable amount of money and investments as a result of the XRP and SEC feud.
As a result of SEC’s legal action against XRP, many cryptocurrency exchanges have since suspended XRP on their platforms. Some of the major cryptocurrency exchanges include Bittrex, Coinbase, OSL, Beaxy, OKCoin, CrossTower, and Bitstamp.