Ripple’s XRP is plummeting almost at the speed of light, with the latest collapse likened to the two biggest market collapses in history.
According to Josh Frank of The TIE, a crypto-focused research firm, the cryptocurrency has lost more value than defunct commodity trading giant Enron.
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 market cap of the XRP token has shed nearly $130 billion from its all-time high of $140 billion barely two years ago. The decline of the institution has been compared to the fall of some major financial institutions, including the historic crash of Enron and Worldcom.
Third largest crash in history
Presently, the token’s market cap is down by 93%, making its collapse bigger than both Worldcom and Enron, according to Frank. It has been described as the third-largest collapse in history, only behind the bankruptcy-related crash of Lehman Brothers and Washington Mutual. The 2008 financial meltdown caused a lot of turmoil in the financial sector, leading to the bankruptcy of several companies, with Washington Mutual and Lehman Brothers topping the list.
Investment giant Lehman Brothers lost $691 billion while Washington Mutual filed bankruptcy of $327 billion, outpacing Worldcom’s $103 billion crash within a few weeks.
Frank said it is sad that people have lost an unimaginable amount of money, while the founders of Ripple have already made hundreds of millions after dumping the token years ago.
The sudden crash of Ripple’s XRP is another pointer to show the level of power regulatory agencies wield.
After the news that the US Securities and Exchange Commission has filed a lawsuit against Ripple and its co-founder Chris Larsen, the company and its token have suffered unprecedented fall. Several exchanges have already delisted XRP on their platform, while the token price continues to crash every day.
More companies cut ties with XRP
Cryptocurrency exchanges such as CrossTower, Beaxy, OSL, Bitstamp, OKCoin, Bittrex, as well as Coinbase have all either suspended the token or removed it entirely from their platforms.
Even before the decisions by the exchanges, the XRP has already started moving speedily in the bearish direction, with holders unable to sell their funds. And when the exchanges cut ties with the token, it even fell deeper.
Ripple is also facing more issues, as institutional actors have started withdrawing from the token. The information available on the Grayscale Investments website noted that the “private placement in the XRP Trust is currently closed.”
A close source said the firm is no longer processing any XRP Trust applications.