![]() Upon reaching out to Ripple for greater clarity around their ambitions, a representative spokesperson stated that the purchasing decision was made due to their “extremely strong position in the market”, citing that the company is “cash flow positive” and has a “strong balance sheet.”Īlongside this, they noted that Ripple experienced its “best hiring year in 2021” and that it is now seeking to onboard “hundreds of global employees this year” to support the already existing 500-employee workforce. “Even with 2021’s headwinds, it was our best year on record,” he stated, revealing that the company’s $1-billion bank balance makes it the “strongest we’ve ever been.”Īlongside the news of buyback and valuation, Garlinghouse also shared optimism for the future of RippleNet and Ripple X, the latter of which is posed to enhance the utility of the XRP Ledger in an array of emerging sectors, including nonfungible tokens, central bank digital currencies, as well as interoperable, multichain functionalities, among others. In choosing to willingly purchase the shares from Tetragon, SBI Holdings and Route 66 Ventures, it implies that Ripple is seeking to enhance its financial strength, a sentiment that Garlinghouse eluded to in a recent tweet thread. However, just three months later in April, the court ruled in favor of Ripple and against the plaintiff, Tetragon, putting an end to the financial dispute. Intent on disassociating themselves with Ripple amid their high-profile and openly public lawsuit, Tetragon sued Ripple in early January 2021 in the Delaware Chancery Court, seeking to enact its contractual obligation of a buyback clause to the value of its undisclosed investment sum. However, in December 2020, the United States Securities and Exchange Commission issued a $1.3-billion financial lawsuit against Ripple Labs, as well as co-founder Chris Larsen and CEO Brad Garlinghouse, accusing the parties of using the native XRP token as an unlicensed digital asset security. Blockchain-based payments firm Ripple has raised 200 million in a Series-C funding round with Tetragon, SBI Holdings and Route 66 Ventures all investing. While some legal experts have predicted that Ripple is likely to lose the case, the company has won a series of procedural rulings that have the potential to embarrass the agency by forcing it to turn over records of its internal deliberations.Blockchain payments firm Ripple has announced a $200-million Series C share buyback, a decision that will take the San Francisco-based tech firm to a record-high valuation of $15 billion.īack in December 2019, Ripple raised $200 million in a Series C funding round with Tetragon Financial Group, a United Kingdom-based investment firm, acting as the lead investor alongside SBI Holdings and Route 66 Ventures. ![]() In response to the lawsuit, Ripple has mounted an unusually aggressive defense, and accused the SEC of hypocrisy for declaring that Ethereum's currency is not a security while XRP is. ![]() The SEC repeated that claim in its lawsuit and, in response to agency's actions, the price of XRP tumbled and several exchanges stopped offering the currency to customers. Skeptics, however, claim the software business is peripheral and point out that the bulk of Ripple's revenue continues to come from XRP sales. In recent years, the company has tried repeatedly to brand XRP as a "bridge currency" to facilitate international transactions, providing software to banks and money markets to facilitate this. Founded in 2011, Ripple is best known for owning the majority of the cryptocurrency XRP, which it has been selling for years to fund its operations. Tuesday's news may help persuade Ripple skeptics who have long doubted whether the company had a viable business. The investor, British fund manager Tetragon Financial Group, in January demanded to redeem its preferred Series C Ripple stock. Ripple also cited 2021 as its most successful year ever, saying the volume of its payment business has doubled and that its "on demand liquidity" business has expanded to 22 markets from the three markets it served in 2020. Ripple, the crypto payments company behind XRP, yesterday dodged a bid from one of its biggest investors to redeem 175 million worth of stock. The investors who sold their shares back to Ripple include Series C lead investor Tetragon Financial group, which sued Ripple in early 2020 in an unsuccessful attempt to back out of its investment following the SEC suit. The spokesperson cited "our extremely strong position in the market," and noted that "Ripple is cash flow positive, has $1B in the bank and a strong balance sheet." $0.04780972 0.42% Terra Classic (Wormhole)Īccording to a Ripple spokesperson, the company bought out the investors with cash it had on hand.
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