Ripple Down As Court Denies Hearing Request
The value of Ripple, one of the most popular cryptocurrencies, declined below $0.80 after a San Francisco state appeals court denied Ripple Labs Inc.’s request for a home-court hearing in its litigation against former partner R3 Holdco.
Ripple, the San Francisco-based blockchain developer behind cryptocurrency XRP, is engaged in a legal dispute with software company R3 over ownership of 5 billion XRP that was once worth more than $16 billion.
Bloomberg reported that a New York court will now probably be the sole decider in the litigation against R3, and that according to Ripple, it would face “irreparable injury” if it has to battle on R3’s home turf in Manhattan.
The litigation began in September last year after the partnership between both developers ended. Ripple had accused that R3 failed to meet partnership commitments, while R3 claimed that Ripple failed to honor an agreement to hand over 5 billion of its cryptocurrency XRP for less than a penny each.
The New York-based R3 sued in Delaware and New York to force Ripple to honor the promise, while Ripple countersued in California claiming that it canceled the option agreement because R3 abused the partnership. After the Delaware turned down the case, the dispute is now prevailing only in R3’s home base in Manhattan.
Ripple, which sells blockchain-based payments software to financial institutions, is the majority owner of XRP. In September last year, when the companies sued each other, the stake in dispute was worth around $1.1 billion, but surge in the value of cryptocurrencies four months later had taken its price to around $16.6 billion. XRP, which was 22 cents in September, climbed to $3.84 in January.
Ripple’s price plunged since then, trading $0.83 before the news of litigation. It then further dropped $0.7760. Currently, Ripple is trading at $0.79, according to coinmarketcap.
Ripple, which is not limited like Bitcoin with 21 million coins, can supply 100 billion XRP tokens.
by RTT Staff Writer
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