Ripple Under Fire: Lawsuit And Bearish Predictions

Ripple seems to have had a tough time. On August 13, it became known that XRP investor from USA Bradley SOSTACK changed a class action lawsuit against a company in which he alleged that Ripple misled investors and sold XRP as an unregistered security in violation of federal law. The initial class action lawsuit was filed about a year ago, but the story has gained momentum only now. Ripple should now respond to this action by mid-September.

In short, the plaintiff requires the court to recognize the XRP as a security and, in accordance with the law, and thus compensate the group for damages. The cost of XRP in US dollars is currently around 0.26. The currency reached a short-term high of $2.70 immediately before the investment of the lead plaintiff. Bradley SOSTACK himself claims to have lost about $118,000 as a result of XRP trading from January 1-17, 2018.

Brad GARLINGHOUSE, CEO of Ripple Labs, previously described the Class Action as "outrageous." However, the company is exposed to strong reputational risk and losses. Today, the famous trader Peter BRANDT predicted a 20% drop in XRP value, noting that the cost of the cryptocurrency is overestimated, and also accused the company of price manipulations in the series of tweets.

Image courtesy of Coinspeaker