Crypto-friendly app warns users against XRP trades
Revolut warned its users that their XRP could get stuck in the worst case scenario.
Crypto-friendly trading app Revolut has issued a clear warning to its customers regarding buying and selling XRP.
As reported by the Irish Times, the fintech company recently sent out a notice to its customers stating that the company could still stop or by Bitcoin Formula restrict trading XRP without notice. Revolut warned users that their money was effectively stuck “in the worst case scenario” and they might not be able to sell tokens even if the price fell to zero.
“It is important to constantly re-evaluate your crypto holdings, especially XRP. Also, keep re-evaluating whether you are comfortable with the risks involved,” Revolut said.
Revolut users can only trade within the app and cannot send or receive cryptocurrencies from third-party wallets. The company said the recent allegations by the US Securities and Exchange Commission could cause liquidity to drop on some of its partner crypto exchanges as they remove the token from their offerings. Revolut would then be unable to buy or sell XRP.
Several crypto exchanges, including Coinbase, have announced they will suspend XRP trading from this week
This is in response to the SEC’s legal action against Ripple. The commission accuses Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen of conducting an “unregistered, continuous securities offering of digital assets” by selling XRP tokens.
Last year, the UK money app expanded its crypto trading services to Australia and the United States. This is said to have accelerated the growing interest in crypto during the COVID-19 lockdowns. Revolut users held around $120 million worth of crypto in 2019, despite the company posting massive losses in the same year.
At press time, the XRP price was at US$0.23. It has risen by 2.6 per cent in the last 24 hours.