Even though Ripple (XRP) is valued as the world’s third-largest cryptocurrency, people are still wondering if it’s a security or not. The parent company owns a large amount of XRP tokens and some cryptocurrency experts believe that the company is only looking to make a profit. Nonetheless, this is why Ripple (XRP) keeps going through lawsuits and a new a one that is directly related to the security controversy has emerged.
Ripple (XRP) Lawsuit
David Oconer is the one who filed this new lawsuit against Ripple (XRP) and this is what he had to say: “Here, the XRP offered and sold by the defendants had all the traditional hallmarks of a security, yet defendants failed to register them as such. The purchase of XRP constitutes an investment contract, as XRP purchasers, including plaintiff, provided consideration (in the form of fiat, such as U.S. dollars, or other cryptocurrencies) in exchange for XRP. XRP purchasers reasonably expected to derive profits from their ownership of XRP, and defendants themselves have frequently highlighted this profit motive”.
Brad Garlinghouse Speaks Out
Brand Garlinghouse is the CEO of Ripple (XRP) and he is doing everything in his power to reassure investors that XRP is not a security. This latest lawsuit is the third one which accuses Brad Garlinghouse and his company of creating a security, but the CEO is not deterred. Brad Garlinghouse is confident that investors are going to see that Ripple (XRP) is not a security and he hopes that this latest lawsuit will help him to do that.
Ripple (XRP) Goes Down
As we all know, the cryptocurrency market is highly volatile and bad press can change everything. Therefore, it should come as no surprise that Ripple (XRP) took a hit during the last 24 hours and it dropped to $0.480 per token.