XRP has declined lower than Litecoin according to the market capitalization after a big investor has recently filed a fresh lawsuit alleging Ripple.
Once again, XRP lost its place of being the 4th largest cryptocurrency. This loss is due to multiple lawsuits against Ripple. Another major investor has recently the path taken by SEC a few weeks ago and filed a complaint against this crypto asset.
XRP Loses Its Stronghold
On 6th January 2021, Bloomberg has reported that Tetragon which is one of the most important investors of this Series C $200 million funding round of Ripple during 2019, filed this lawsuit. The complaint was filed in the court of Delaware Chancery.
This investment company has claimed to be seeking a legal procedure whereby they can enforce their contractual right. According to this right, they need Ripple to cash in on their Series C desired stock owned by Tetragon.
Moreover, the company has petitioned to prohibit Ripple from the usage of any cash or liquid assets till this lawsuit is settled in court.
Ripple has stated that the lawsuit has no value and Tetragon is simply trying to take advantage of their tokens.
At present, the market cap of Ripple is $10.3 billion while Litecoin has $10.5. This is because LTC surged by 26% in the past 7 days due to the stagnancy of XRP.
SEC had charged Brad Garlinghouse, CEO of Ripple, and Chris Larsen, co-founder, with conducting an unregistered offering of digital assets for selling XRP in the month of December 2020. The case will have its virtual pre-trial in February 2021.
Since the end of November, XRP dropped 70%.
