XRP cryptocurrencies continued to decline, recording a decline of over 30% in 24 hours. Worse when the Securities and Exchange Commission (SEC) sued Ripple it also invited a red wave to the entire altcoins market.
XRP has been sold and distributed individually, to investors and institutions. Only the coin shares are locked in the escrow which is Ripple's own responsibility.
Despite the mistakes of Ripple founders Brad Garlinghouse and Christian Larsen that led to both being sued, XRP bore the consequences.
At this point, asset sales will have a more severe impact as the dumping of the exchange platform begins to delist XRP. In fact, it is affecting the entire crypto industry where investors are starting to consider XRP holdings for Bitcoin (BTC) and Bitcoin Cash (BCH).
The question is, to what extent does it affect the value of XRP?
Given that its decline was due to a more ‘authoritative’ administration of centralized assets, unlike Bitcoin and Ethereum as centralized assets, this made it easier for the SEC and any organization to eliminate Ripple.
At the same time the actions of the United States (US) government have put a limit on the movement of BTC which has recorded a bullish trend over the past few weeks.
There are two major effects that can occur when the law is abruptly amended:
First, there will be more altcoin capital pulled out of coins like XRP and switched to Bitcoin, causing the crypto king to continue heading to the moon.
Second, negative altcoin sentiment as it happened in 2019, may cause BTC to return bearish.
