Chicago-based Jump Trading and Galaxy Digital, led by Mike Novogratz, were the two current companies that gave bad news to XRP. It is stated that the duo, one of the biggest market makers and trade chambers in the crypto money industry, took this decision due to the lawsuit filed against Ripple.
Jump Trading and Galaxy Digital halt XRP trading
Jump Trading is known as one of the most active companies in the crypto money industry. The company trades high frequency using high frequency commercial data and electronic trading programs. The point where Jump Trading is shown among the leaders in its field is the liquidity it provides.
Galaxy Digital, directed by famous Bitcoin (BTC) investor Mike Novogratz, is among the leaders in both liquidity provision and high frequency trading. The trading platform managed by Galaxy Digital has reached a commercial volume of $ 1.4 billion in the third quarter of this year, proving it to be one of the leaders in its field.
According to the information provided by three sources from the cryptocurrency industry and The Block, Jump has announced to third parties that it will no longer provide liquidity for XRP. An official statement has not yet been made on the Jump Trading front.
Galaxy Digital, on the other hand, stated that they stopped trading, but they will continue to evaluate as the case continues. It is stated that Galaxy Digital has stopped trading XRP completely as of today.
What does the decrease in XRP liquidity mean?
If two major institutions abandon their role as market maker for XRP, it could hurt XRP liquidity in exchanges. It is stated that the lower the liquidity of an asset, the lower its volume and the more its volatility will be due to the low volume.
The number of hits XRP investors have received on liquidity alone continues to increase. Bitwise recently announced that it has removed XRP from the cryptocurrency investment fund that includes top 10 cryptocurrencies. Before that, it is known that OSL, Beaxy and CrossTower crypto exchanges made a delist decision for XRP. The effect of all these developments may be the inability to provide sufficient liquidity for XRP trading.