Ripple – the third-largest cryptocurrency by market cap – has allegedly completed a funding round in which the company got its hands on $200 million. This takes Ripple’s net value to a whopping $10 billion.
Ripple Is Heading to the Top
The round was led by Tetragon, an investment company stationed in New York. Other companies to take part in the event include Japan’s SBI Holdings and the venture capital firm Route 66 Ventures in Virginia.
Ripple head honcho Brad Garlinghouse comments:
We are in a strong financial position to execute against our vision. As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2019.
As one of the world’s leading cryptocurrency’s, Ripple was founded in 2012 but didn’t necessarily rise to fame until 2017. At that time, the industry of virtual currencies was experiencing bullish behavior like no one had ever witnessed, and Ripple’s digital currency XRP hit its all-time high of more than three dollars alongside several other cryptocurrencies such as bitcoin, which rose to nearly $20,000 per unit by the end of the year.
The company has also developed a reputation for holding its ground in the space of cross-border payments. Ripple often competes with the likes of SWIFT, though Garlinghouse has stated in the past that Ripple is considerably faster, and therefore more efficient, when it comes to sending money to individuals in other regions or countries.
At a recent conference, Garlinghouse compared Ripple and SWIFT, touting his company and explaining:
You execute a SWIFT wire transaction and the only way you know I received it is when you send me a note saying, ‘Hey, I sent you a wire.’ This does not need to happen in a world where people can use better technology.
The company has recently expanded its banking partnerships and upped its investments in MoneyGram, a venture that has pushed XRP usage over the past several months and works to send monies abroad in the form of remittance payments.
Unfortunately, it’s not all lollipops and rainbows for Ripple, as the company is facing a multi-million-dollar class-action lawsuit from early investors who claim they were lied to regarding Ripple’s alleged status as a non-security.
A Dark Cloud Emerges
The suit was initiated in May of 2018 by investor Ryan Coffey, who says Ripple is a “never-ending ICO [initial coin offering].” Court documents describe executives of Ripple as such:
Defendants have since earned massive profits by quietly selling off this XRP to the general public… in order to increase demand for XRP, and thereby increase the profits it can derive by selling XRP, Ripple Labs has consistently portrayed XRP as a good investment, relayed optimistic price predictions, and conflated Ripple Labs’ enterprise customers with usage of XRP.