InsiderFlow › News › Ripple once weighed shutting down and handing XRP to shareholders, CEO says

NEWS · CoinDesk · Jul 12, 2026 NEUTRAL

Ripple once weighed shutting down and handing XRP to shareholders, CEO says

Ripple, the company behind the XRP cryptocurrency, considered shutting down and distributing its XRP reserves to shareholders due to a 2020 lawsuit.

What it means

Ripple, the company behind the XRP cryptocurrency, considered shutting down and distributing its XRP reserves to shareholders due to a 2020 lawsuit. This means the company was evaluating drastic options to face legal challenges. This event is important because it reflects the volatility and uncertainties in the cryptocurrency sector.

Possible consequences

The news may influence the price of XRP and have a ripple effect on the cryptocurrency market as a whole. Investors may become more cautious in investing in cryptocurrencies due to legal and regulatory uncertainty. This could also impact companies operating in the cryptocurrency sector.

What you can do

Investors should closely monitor news related to cryptocurrency regulation and legal actions that could impact the sector. It's essential to maintain a long-term perspective and not be swayed by short-term fluctuations.

In the InsiderFlow app you get the news that matters explained like this every day: what it means and what to watch.

Read the story on CoinDesk →

Explanation generated by InsiderFlow's AI for informational purposes: not financial advice.