Are XRP whales disappearing? This seems to be the case according to new data following the US Securities and Exchange Commission lawsuit against Ripple.
The regulator's gung-ho operation against Ripple has prompted a withdrawal from XRP waters, with many stakeholders dumping liquidity and cashing out.
According to Coin Metrics, the preeminent platform in charge of tracking cryptocurrency and blockchain trends, crypto whales have fallen from 1,721 addresses to 1,567 addresses between December 21, 2020 and January 3, 2021.
A whale is traditionally considered a person or organization who owns at least 1 million XRP. Now, though, the uncertainty surrounding XRP has prompted many to rethink and reconsider their efforts in this particular cryptocurrency space.
Many holders have responded negatively to the SEC review, focusing not so much on Ripple as an organization, but rather SEC's premise in the lawsuit.
While the exodus has not been complete, Ripple did lose an estimated 70% of its currency value prompting a serious slow-down on exchanges.
Yesterday, the Digital Large Cap Fund has liquidated its XRP holdings and Bitwise Asset Management removed all XRP from its holdings late last year. Ripple is in a difficult place, and one that may not see the currency fully-recovered any time soon.
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