There is another shocking news for the blockchain payments firm Ripple’s native digital currency XRP. Another major cryptocurrency firm has slammed the major digital currency. Grayscale Investments, a leading cryptocurrency asset management firm, has announced to drop support for XRP. With this announcement, it has become the latest crypto firm to dump Ripple’s native digital token.
Removing XRP From Digital Large Cap Fund
Grayscale announced the removal of Ripple’s native digital currency in a press release issued on the 5th of January 2021. As per the official press release, XRP has been removed from Grayscale Digital Large Cap Fund (DLC), the company’s public digital currency fund.
All of the holdings of XRP available in the fund have now been liquidated by the company. Grayscale has used the amount that is made from the sale of XRP tokens to purchase more digital currencies, including the world’s largest cryptocurrency by market value Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH). Before XRP was sold by Grayscale, it represented around 1.46 percent of the fund. However, the fund now has 81.63 percent in Bitcoin, 15.86 percent in Ethereum (ETH), 1.43 percent in Litecoin, and 1.08 percent in Bitcoin Cash.
This decision of Grayscale to remove the fourth-ranked digital currency from its fund follows the recent lawsuit filed against the San Francisco-based remittance firm Ripple by the United States Securities and Exchange Commission (SEC). Now, more than one week has passed since the United States agency sued Ripple for allegedly selling $1.3 billion worth of unregistered securities.
Grayscale’s announcement has come a few days after the cryptocurrency firm Genesis Global Trading revealed its plans to suspend support for XRP. As per the announcement of Genesis Global Trading, it will stop providing trading services for Ripple’s native digital currency starting from the 15th of January.
The legal battle between Ripple and SEC is still going on. They will come face to face in the court in the month of February. Ripple has already refused to accept these accusations put against it by the SEC and says it is ready to fight this legal battle.
Meanwhile, the XRP community is urging the United States federal government to take action against this lawsuit. The investors of XRP have filed a petition while asking the government to declare XRP as a currency.