The XRP token has lost a lot of value even more than former commodities trading giant Enron. XRP’s market cap has plunged by almost $130 billion since its all-time high recorded in 2018. That makes the crypto project’s decline comparable to the collapse of several major financial institutions.
The project is currently experiencing a collapse that resembles some of the largest corporate scandals and catastrophes that have been seen in recent history, according to crypto-focused research company The TIE’s Josh Frank.
XRP's market cap has fallen by 93% from $137B to under $10B. That makes the value of the XRP collapse bigger than Enron and Worldcom.
While not a bankruptcy, XRP is effectively the third largest collapse of all time behind Lehman Brothers and Washington Mutual.
— Joshua Frank (@Joshua_Frank_) December 30, 2021
XRP’s market cap at its peak was about $140 billion in January 2018. It has recently dropped below $10 billion which is an estimated loss of over 92% in just about three years. That effectively makes the “collapse” of XRP is third behind only the $327 billion bankruptcy of Washington Mutual.
At the top is the failure of investment giant Lehman Brothers in 2008, which involved a financial meltdown valued at around $691 billion. Frank told reporters:
“It is sad and unfortunate that the biggest losers in the [XRP] saga are the individual investors who lost unimaginable amounts of money. The founders of Ripple continued to dump their tokens for years and made hundreds of millions of dollars.”
After news emerged that the US Securities and Exchange Commission would charge Ripple, co-founder Chris Larsen, and CEO Brad Garlinghouse with launching and operating an “unregistered, ongoing digital asset securities offering” for their XRP token sales, the token price has crashed massively.
Major crypto exchanges including Bitstamp, OSL, Coinbase, Bittrex, Beaxy, OKCoin, CrossTower later said that they would suspend XRP trading services or delist the token entirely. These announcements provided more bearish fuel in the XRP market.
Institutional investors have also started damping XRP. Most recently, Grayscale Investments’ site was updated stating that its “XRP Trust private placement is currently closed”. In that context, one Twitter user alleged that the company would also no longer process any pending applications for the XRP Trust.
At the time of writing, XRP is hovering around $0.21 having lost over 65% in the past 30 days.