Revolut, a crypto-friendly trading app, has issued a strong warning to its customers regarding buying and selling XRP.
It has been reported by The Irish Times that the fintech firm recently sent out a notice to its customers by saying that it was still possible for the firm to delist or restrict trading on XRP with little or no notice.
However, Revolut warned users that their funds could effectively be stuck without the means to sell tokens even if the price falls to zero “in a worst-case scenario.”
Revolut stated:
“It’s important that you constantly reassess your crypto holdings, specifically XRP, and whether you remain comfortable with the associated risks.”
The report said that Revolut users are limited to trading within the app and cannot send or receive crypto from third-party wallets. The firm said the recent charges from the United States Securities and Exchange Commission could cause liquidity on some of its partner crypto exchanges to drop as they delist the token, leaving Revolut unable to buy or sell XRP.
UK-based @RevolutApp claimed that users may be left unable to buy or sell #XRP as crypto exchanges respond to the SEC's charges against @Ripple https://t.co/oI3WEMC4nN — Cointelegraph (@Cointelegraph) January 4, 2021
Likewise, a number of crypto exchanges, including Coinbase, have announced that they will suspend XRP trading starting this week in response to the SEC taking legal action against Ripple.
The commission has charged Ripple CEO Brad Garlinghouse and co-founder Chris Larsen with conducting an “unregistered, ongoing digital asset securities offering” in selling XRP tokens.
Thus, Revolut users held around $120 million worth of crypto in 2019 despite the firm reporting massive losses the same year.
Source: Cointelegraph