In brief
- Investment firms Galaxy Digital and Jump Trading have stopped making markets in XRP, according to news reports.
- This is because the company associated with XRP, Ripple, is involved in a $1.3 billion lawsuit with the SEC.
- The price of XRP has since crashed and exchanges have stopped selling the asset.
Two crypto investment firms, Galaxy Digital and Jump Trading, have cut ties with XRP, according to reports.
Crypto news site The Block today reported that the trading desks confirmed that they stopped making markets in XRP following Ripple’s high profile lawsuit. Yesterday, the US Securities and Exchange Commission (SEC) filed a $1.3 billion lawsuit against Ripple Labs, the company associated with XRP.
Three exchanges have since stopped trading the cryptocurrency and the token’s price has dropped, and Bitwise has liquidated all XRP from its fund.
Making markets refers to providing liquidity to exchanges.
The Block reported that Galaxy would also not trade the asset until “facts become available.” Decrypt has reached out to both firms to confirm the news.
Galaxy is a major New York-based crypto investment firm headed-up by billionaire Bitcoin bull, Mike Novogratz. It manages over $400 million in assets.
Jump Trading is a quantitative trading firm that deals with millions of dollars in crypto.
XRP is the fourth biggest cryptocurrency by market cap. But since its legal troubles, its price and market dominance has dipped.
The SEC alleges that Ripple Labs, the company associated with XRP, had raised $1.3 billion in unregistered securities offerings since 2013.