The prominent blockchain company Ripple, currently embroiled in a legal dispute with R3 Holdco, has lost its bid to hold the court hearings in its home state of California.
The legal clash began in early September 2017, when blockchain startup R3, a rival and former partner of Ripple, filed a lawsuit against the company. It was claimed that Ripple had failed to pay the five billion units of its cryptocurrency XRPthat it owed R3 as part of an options agreement. At the time, this amount would have totaled around $1 billion.
Ripple counter-sued, claiming that R3 had entered into the agreement under misrepresented pretenses and that it had failed to fulfill its role as a blockchain development partner.
In the months following the filing of the initial suit, the price of XRP rose to over $3.30 per unit. The price movement appeared at least partly due to the general upsurge of cryptocurrency value at the beginning of the year. The increase of the value of each Ripple pushed the contested five billion XRPs to over $16 billion, putting Ripple in a position of potentially crippling loss.
With the above said, the price of XRP has since fallen drastically, having most recently plummeted from around $0.96 earlier in the week to its current price of around $0.78. This puts the current price of the contested five billion XRPs at just under $4 billion.
Given the volatile nature of the modern cryptocurrency market, it is difficult to pinpoint exactly how much of this fall in value is due to the current legal turmoil.
Nonetheless, it seems likely that it will cause at least something of a disturbance among Ripple’s speculators, and serve to be a difficult pill for the company to swallow, should the final decision be in R3’s favor.