San Francisco-based blockchain-based payments firm Ripple Labs has lost its lawsuit against its former partner R3 Holdco in a California court.
The dispute started as R3 Holdco accused Ripple Labs of failing to pay 5 billion XRP tokens owed under the partnership agreement. Ripple later accused R3 of entering into the partnership under false pretences. The contested amount of Ripple tokens are worth over $16 billion – a number which can easily bring misery to the losing party.
R3 also filed lawsuits against Ripple in two other courts – Delaware and New York. The Delaware court dismissed the case in October, leaving the New York court the sole decider of the fate of the two firms. Moreover, Ripple argued that the firm would face “irreparable injury” if it had to fight R3 in Manhattan, which is the home state court of R3.
As the cryptocurrency market is already going through turmoil, the court decision’s impact on the value of Ripple cannot be accurately judged. However, it is worth noting that the token is down by more than 6%, as its value on the 24-hour chart depreciated from $0.83 to $0.78.
Moreover, the selling rush is still dominating the market.
Making More Allies
Ripple is constantly trying to ink more and more deals with financial institutions all over the world.
To expand its market acceptance, Ripple is now planning to invest in startups and technology companies to develop more uses for XRP, according to a recent report by Tech Crunch.
The prospect was revealed by Ripple’s CEO Brad Garlinghouse on the sidelines of Money2020 in Singapore. Mr. Garlinghouse said: “We, Ripple, will stay focused on solving that institutional use case, but we would certainly partner with companies that are looking to use XRP in lots of different ways.”
In January, two executives from Ripple led a $25 million investment in the San Francisco-based startup Omni, a storage and rental services for goods, which in return agreed to introduce XRP within its service. According to Mr. Garlinghouse, that was just a blueprint of Ripple’s plans.
“You should expect that you’ll see more of those,” he added.