The negative news surrounding Ripple’s XRP has continued into the new year as more brokerage firms are cutting ties with the digital asset. FXOpen and eToro recently joined the list of platforms that stopped offering XRP tokens for trading on their platform. Now, FX broker ThinkMarkets has joined the list by placing XRP trades on Close Only Mode.
ThinkMarkets is a multi-asset broker that offers commodity products, CFDs, and forex trading. The FCA-regulated announced that the transfer of trades on XRP/USD to close-only-mode will be that way until further notice.
There is no doubt that the decision of the broker is in reaction to the impending lawsuit by the Securities and Exchange Commission (SEC) on XRP owners Ripple and their partners.
According to the firm, the new restriction will take effect from January 4. As a result, no new positions on XRP/USD will be allowed on the platform. But clients who already have open positions will be able to close them whenever they want after the date.
The news circulating in the crypto community about XRP is not a good one. Yesterday, crypto analyst and researcher Josh Frank compared XRP’s fall to the biggest company crashes in history, behind only Lehman Brothers and Washington Mutual collapse.
More market makers delist XRP
Many FX brokers are taking special measures as no one is sure where the SEC lawsuit will take XRP’s valuation. Already, the token has lost $130 billion in market capitalization since its all-time high value in 2018.
While the SEC’s lawsuit s not against XRP but its company Ripple and its executives, several online brokers have already made plans to protect their customers in case there is sharp market volatility.
Major crypto exchanges such as Coinbase, Bitstamp, OKCoin, and payment providers Wirex and Simplex have either removed XRP trading entirely from their platform or temporarily suspended it.
Even lesser-known exchanges like Beaxy, CrossTower, and OSL suspended XRP trading on their platform soon after SEC announced the lawsuit against Ripple and its executives.
On the same note, crypto fund managers such as Grayscale and Bitwise liquidated all or part of their positions in XRP, citing regulatory issues as the cause of their action.
Within a week, the XRP token crashed to $0.20 from its last week’s value of $0.64. However, some bargain hunters are now taking advantage of the low price of the cryptocurrency to stash the coin in anticipation of an improved value for the token.