The XRP drop raises two questions:
- Is XRP dead?
- What about the other cryptos?
XRP will survive as long as it can be traded on exchanges like Coinbase or Binance. However, they may delist it, as mentioned by Hailey Lennon, a partner at Anderson Kill:
You know who is at risk if XRP is considered a security? EVERY EXCHANGE THAT LISTS XRP.
Furthermore, some crypto business insiders predict that it might go to bankruptcy, like Phil Liu, Chief Legal Officer at digital securities firm Arca:
XRP (the coin) is one foot in the grave. Ripple, the company, may be insolvent by the end of 2021 if it can’t raise money by selling XRP and its other products aren’t profitable. I don’t see a viable alternative to replace XRP sales except to move out of the U.S. and exclude U.S. investors from buying XRP. They would have to start from scratch because all XRP profits would be disgorged since they all occurred when Ripple was a U.S.-based company.
So, for the very first time, it is not unlikely that the crypto #3 (by market cap) disappears from the surface of the earth...
Regarding the other cryptos, the root cause of SEC decision is that XRP is an
unregistered securities offering to investors in the US and worldwide.
Therefore, this decision cannot apply to the cryptos which are not securities. Fortunately, the Commodity Futures Trading Commission (CFTC) in the United States designates BTC as a commodity, as well as ETH and most of the other altcoins. Furthermore, if XRP continues to drop, the rank #3 in market cap will be taken by another altcoin. The cash from XRP sales is being reinvested into other altcoins, creating new opportunities. Among them, LTC, LINK or XTZ could have a new bull run period.
