RE: BITCOIN30 Jan 2021 12:14
As a holder of $XRP on eToro, we want to ensure that you are up to date on the latest developments regarding XRP (Ripple).
In response to the decision by the Securities and Exchange Commission (SEC) to file a lawsuit against Ripple Labs Inc., many organizations in the US, and some in Europe, have already announced that they are either greatly reducing, restricting or removing their XRP-related services. While the outcome of this lawsuit is still uncertain, it has caused significant volatility in XRP prices, and there is a risk that this will affect the regulatory treatment of XRP globally.
eToro has suspended trading for US customers (www.etoro.com/news-and-analysis/crypto/etoro-to-suspend-xrp-trading-in-the-us/). For now, these restrictions ONLY apply to our US customers. We are monitoring the situation and will keep you updated if we have to make any changes regarding our XRP-related offering for clients outside of the US.
--- How could this situation affect you?
In addition to the potential impact of the SEC lawsuit on the regulatory treatment of XRP, we also want to highlight the potential for liquidity issues that could result from the current situation.
The existing uncertainty has increased, which means that the execution of XRP orders, including the closure of existing positions, could be interrupted or even stopped. We may also see significant widening of spreads or increased chance of slippage (the price gap that can occur between the time that you place your order, and the time we are able to execute it) due to extreme market conditions.
At the time of writing, the eToro platform continues to support XRP trading for non US clients, so you can still buy and sell XRP. However, since the situation is evolving very rapidly, the risk of liquidity issues are significant.
We therefore encourage you to evaluate your current positions and take note of the possibility of the following:
1. In case of a regulatory requirement, or if the liquidity in the market drops to the level where eToro can no longer fill, buy, or sell XRP orders, we may have to suspend the trading of XRP with no advance warning.
2. This would mean that you would not be able to close your XRP trade. You would keep your cryptoasset, although its price could drop.
3. You should fully understand the risk associated with trading in XRP. In particular, it is advisable that you remain fully informed of the developments with respect to XRP, and that you regularly check your orders and open positions.
We are taking this opportunity to reiterate and note that our cryptoasset trading services, and especially cryptoasset margin transaction services (if available to you) are not appropriate for everyone. Cryptoassets are volatile virtual products and come with a high risk of losing money quickly. Prices can and do fluctuate significantly on any given day. Due to these price fluctuations, your holdings may significantly increase or decrease in value a