XRP sinks lower LTC over after new lawsuit from the main investor

Jan 6, 2021 06:33 UTC

| Updated:

Jan 6, 2021 at 06:33 UTC

By Clark

XRP has tumbled below Litecoin by market cap afterward the main investor filed a novel lawsuit in contradiction of Ripple. XRP has once again misplaced its place as the 4^th major cryptocurrency, with lawsuits mounting in contradiction of Ripple after one of its chief investors shadowed the SEC in filing a complaint contrary to the project.

Rendering to a Jan. 6 report from Bloomberg, Tetragon, one of the principal investors in a $200M Series C funding round for Ripple in 2019, has marched a complaint contrary to the firm in the Delaware Chancery Court.

The investment company prerogatives it is looking for a court to ‘enforce its contractual right to require Ripple to redeem’ Series C preferred stock detained by Tetragon. Also, the firm is pleading with the court to halt Ripple using ‘any cash or other liquid assets’ till the matter is stable.

Ripple has responded to the claims, claiming the lawsuit has ‘no merit and reproachful Tetragon of taking benefit of ‘the lack of controlling clarity’ in the U.S in filing the suit.

The firm’s executives have earlier disapproved regulators in the U.S. — suggesting the firm would move its headquarters off-shore to flee the United States’ ‘regulation through enforcement.’

Amid lawsuits from both the U.S. Securities & Exchange Commission, and SEC, & here & now Tetragon, XRP has lost its position as the 4^TH biggest cryptocurrency by market capitalization. Rendering to data from CoinMarketCap, XRP’s $10.3 billion market cap be seated behind Litecoin’s $10.5, with LTC having full-grown by 26% over the previous 7 days while XRP’s market cap has stagnated. Litecoin first ‘flipped’ XRP on Sunday, but it was a short-lived move.

In Dec. the SEC charged Ripple CEO Brad Garlinghouse & co-founder Chris Larsen with leading an ‘unregistered, ongoing digital asset securities offering’ for their XRP sales. The case is scheduled for a virtual pretrial conference in Feb.

After the news, crypto exchanges comprising Bittrex, Coinbase, OSL, OKCoin, Bitstamp, CrossTower & Beaxy, have distanced themselves from XRP. Some have proclaimed they would hang trading for XRP, while others will delist the token completely.

At the time of publication, the price of XRP is $0.22, having dropped 70% since late Nov.

Cointelegraph touched out to Tetragon for remark but did not receive a reply at the time of publication.

Clark

Head of the technology.