XRP token has plummeted further in the market as Ripple, the company behind the token, keeps battling with more lawsuits. As it stands, litecoin has overtaken Ripple’s XRP token when it comes to market cap.
In the latest development after the SEC lawsuit against Ripple, Tetragon filed a lawsuit against Ripple Labs in Delaware Chancery Court to compel the company to redeem Tetragon’s Series C preferred stock.
Tetragon has also asked the court to stop Ripple from making any financial transactions until Ripple makes the payment.
As a result of the development, the price of XRP plummeted further by 5% and behind litecoin, which is now the fourth most valued cryptocurrency behind litecoin.
Apart from the above request, Tetragon also requested a restraining order, a preliminary injunction, and an expedited trial against the blockchain firm.
Ripple says the lawsuit has no basis
But in its defense, Ripple said there is no basis for those requests or orders. Ripple said the lawsuit has no merit and dismissed the basis of the lawsuit.
Ripple stated that Ripple’s Series C investment provision revealed that Tetragon has the option of demanding Ripple to redeem their equity only if XRP is regarded as a security on a go-forward basis.
Ripple further stated that it is disappointed that Tetragon is taking advantage of the issues SEC is having with Ripple to further cause more chaos and unfairly gain benefit.
“The courts will provide this clarity, and we are very confident in our position,” Ripple added.
Last month, SEC filed a lawsuit against Ripple citing that the company’s XRP token is a security. The SEC also accused Ripple and its executives of carrying out a $1.3 billion unregistered security offering. The SEC mentioned Ripple’s Chief Executive Officer Brad Garlinghouse and its co-founder, Chris Larsen, as defendants in the lawsuit.
Litecoin now the fourth-largest crypto
Shortly after the news of the lawsuit reached the crypto community and the crypto market, XRP plummeted by 60%. So many major crypto exchanges suspended the offering of XRP trading on their platform while some of them completely delisted the token. Within two weeks the total market cap of XRP has dropped to $10 billion from $29 billion. Presently, the cryptocurrency is trading around $0.22.
While XRP is experiencing a major collapse in the market, other cryptocurrencies are still brimming in the current Bull Run in the market. One of those cryptocurrencies is the litecoin, which has become the fourth-largest cryptocurrency with $10.7 billion in market cap.