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More Woe On XRP Coin Holders As Grayscale Investment Pulls Out

BY DAYO ADESULU

Holders of XRP coin will further get more devaluation for their investment as Grayscale Investments is shutting down its Grayscale XRP Trust and liquidating its XRP holdings.

Grayscale Investments announced Wednesday that it is commencing the “dissolution of Grayscale XRP Trust.”

The decision to quit is coming at the backdrop of the ongoing lawsuit against XRP, thereby making it difficult to exchange the XRP cryptocurrency for the United States Dollars.

Grayscale Investments explained that shutting down its Grayscale XRP Trust and liquidating would allow the company to distribute cash proceeds to the trust’s shareholders.

XRP management reiterated its difficulty in converting XRP into U.S. dollars following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple.

Recall that on Dec. 22, the U.S. Securities and Exchange Commission (SEC) decided “to file a federal court action against certain third parties asserting that XRP is a ‘security’ under federal securities law.”

In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms.

This has resulted in Grayscale’s “conclusion that it is likely to be increasingly difficult for U.S. investors, including the [Grayscale XRP] Trust, to convert XRP into U.S. dollars, and therefore continue the trust’s operations.”

The trust will terminate following the distribution of the net cash proceeds.

After removing the XRP Trust, Grayscale now offers nine crypto investment products: the bitcoin trust, bitcoin cash trust, ethereum trust, ethereum classic trust, horizen trust, litecoin trust, stellar lumens trust, zcash trust, and the digital large-cap fund. On Jan.

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