XRP sinks below LTC again after new lawsuit from major investor

XRP has fallen below Litecoin by market cap after a major investor filed a new lawsuit against Ripple.

XRP has once again lost its place as the fourth-largest cryptocurrency, with lawsuits mounting against Ripple after one of its major investors followed the SEC in filing a complaint against the project.

According to a Jan. 6 report from Bloomberg, Tetragon, one of the lead investors in a $200 million Series C funding round for Ripple in 2019, has filed a complaint against the firm in the Delaware Chancery Court.

The investment company claims it is seeking a court to “enforce its contractual right to require Ripple to redeem” Series C preferred stock held by Tetragon. In addition, the firm is petitioning the court to stop Ripple from using “any cash or other liquid assets” until the matter is settled.

Ripple has responded to the allegations, claiming the lawsuit has “no merit” and accusing Tetragon of taking advantage of “the lack of regulatory clarity” in the United States in filing the suit.

The firm’s executives have previously criticized regulators in the U.S. — hinting the firm would relocate its headquarters off-shore to flee the United States’ “regulation through enforcement.”

Amid lawsuits from both the U.S. Securities and Exchange Commission, or SEC, and now Tetragon, XRP has lost its position as the fourth-largest cryptocurrency by market capitalization. According to data from CoinMarketCap, XRP’s $10.3 billion market cap sits behind Litecoin’s $10.5, with LTC having grown by 26% over the last seven days while XRP’s market cap has stagnated. Litecoin first “flipped” XRP on Sunday, but it was a short-lived move.

In December, the SEC charged Ripple CEO Brad Garlinghouse and co-founder Chris Larsen with conducting an “unregistered, ongoing digital asset securities offering” for their XRP sales. The case is scheduled for a virtual pretrial conference in February.

Following the news, crypto exchanges including Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy, and CrossTower have distanced themselves from XRP. Some have announced they would suspend trading for XRP, while others will delist the token entirely.

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

Cointelegraph reached out to Tetragon for comment, but did not receive a response at the time of publication. 

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Ripple Community Pushes For Recognition Of XRP As A Currency Amid Catastrophic SEC Lawsuit

Ripple Community Pushes For Recognition Of XRP As A Currency Amid Catastrophic SEC Lawsuit

The XRP community is asking the U.S government to recognize XRP as a cryptocurrency. To achieve this, the community has started a petition which already has over 21,00 signatures at the time of this report. The SEC has for years contended that XRP is not a currency but rather a security. The XRP community obviously […]

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Can the SEC Devastate Bitcoin Like XRP By Classifying BTC As A Security? – Crypto Critic Speculates

Can The SEC Devastate Bitcoin Like XRP By Classifying BTC As A Security? - Crypto Critic Speculates

If the US Securities Exchange Commission (SEC) decided to go after Bitcoin like it’s doing to Ripple, Bitcoin would fall just as quickly as Ripple’s XRP has in the last couple of days, according to renowned Bitcoin critic and gold crusader Peter Schiff. “What happens to the price of #Bitcoin if the sec alleges that […]

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Faulty data? Grayscale didn’t liquidate massive amounts of XRP and XLM

A Grayscale spokesperson confirmed to Cointelegraph that the fund manager didn’t dump massive stakes of XRP and XLM.

Bybt data apparently showing a massive liquidation of XRP and Stellar Lumen (XLM) by Grayscale Investments earlier this week is inaccurate, according to the investment company.

On Wednesday, a public Bybt data set suggested that Grayscale Investments reduced its exposure to XRP by roughly 9.19 million units and that the fund also cut its XLM holdings by over 9.74 million units. According to Bybt data, the net change in holdings occurred over 24 hours on Tuesday.

Cointelegraph accessed the data before Grayscale released its daily assets under management report for Tuesday and noted in an article that Grayscale had reportedly sold significant amounts of XRP and XLM.

Efforts to reach Grayscale on Wednesday were unsuccessful. However, on Thursday, a Grayscale spokesperson told Cointelegraph: 

“None of the Grayscale investment products operate a redemption program. The net holdings of our investment products only change as a result of inflows from the private placement, price of the underlying assets and accrued management fee.”

“Statements about large sales of underlying assets by any of our investment products are false and inaccurate. Any perceived large decrease in the USD value of Grayscale XRP Trust would have been a result of a decrease in the USD price of XRP.”

Bybt’s data feed still shows a large outflow of XRP and XLM from Grayscale over the past seven days, both in terms of AUM and actual units of XRP and XLM held. These figures appeared under the “24H Change” column on Wednesday. 

Bybt data still shows a large decline in Grayscale’s XRP and XLM holdings

The Grayscale AUM report for Wednesday was released on Thursday. It reads:

Grayscale’s official AUM report for Wednesday

Attempts to contact Bybt have not yielded any responses. 

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