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Ripple (XRP) drops below Litecoin following Tetragon lawsuit

XRP’s downfall continues as it drops to fifth place after falling behind Litecoin (LTC)

XRP was the third most popular digital asset in the list of cryptocurrencies by market cap, a few weeks ago, only behind Bitcoin and Ethereum. However, the United States Securities and Exchange Commission (SEC) lawsuit against Ripple has affected the value of the cryptocurrency, and it has been on a free-fall ever since.

The cryptocurrency dropped to fourth place soon afterwards, losing its place to Tether (USD). XRP has now slipped to the fifth spot after Litecoin. At the time of this report, Litecoin’s market cap stands at $10.6 billion while XRP’s is at $10.3 billion.

Over the past month, XRP has lost over 63% of its value, showcasing the gravity of the SEC lawsuit against Ripple. Litecoin, on the other hand, is up by 79% over the past month. SEC’s lawsuit against Ripple led to several cryptocurrency exchanges delisting XRP from their trading platforms.

XRP’s woes continue to pile up after Tetragon revealed it had also sued Ripple. Tetragon was one of the leading investors in a $200 million Series C funding round for Ripple two years ago. The company revealed that it had filed a complaint against Ripple in the Delaware Chancery Court.

According to the report, the investment company wants the court to enforce its contractual right to require Ripple to redeem Series C preferred stock that it holds. Tetragon is also asking the court to stop Ripple from using liquid assets or cash until the issue is resolved. The investment company wants the court to issue a temporary restraining order, a preliminary injunction and an expedited trial.

Ripple responded to the lawsuit, claiming that Tetragon’s claims have no merit since it is yet to be determined that XRP is unregistered security. The firm accuses Tetragon of taking advantage of the lack of regulatory clarity in the United States in filing the complaint.

“We are disappointed that Tetragon is seeking to unfairly take advantage of the lack of regulatory clarity here in the US. The courts will provide this clarity, and we are very confident in our position”, Ripple added.

Ripple’s executives have criticised the US regulators in the past, suggesting the firm would move its headquarters abroad to avoid regulation through enforcement. The company is considering shifting its headquarter to the UK, Switzerland, Singapore, or Japan.

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