In the latest lawsuit against the firm, a private investor alleges that Ripple have conflated the XRP token with the Ripple transaction technology, making them guilty of both price manipulation and illegally trading securities. Filed in the state of California, the plaintiff David Oconer claims that XRP has “all the traditional hallmarks of a security”, without being registered as such.
This is the third lawsuit to find fault with Ripple’s centralized distribution model, which has seen the firm essentially create billions of XRP tokens out of nothing, to be sold to the public on what the plaintiff claims is the false premise that their value is related to the efforts of Ripple Labs, the software company. This funding model has catapulted the senior staff of Ripple to prosperity, and made the firm one of the most valuable startups in history. Ripple have not yet issued comment on the lawsuit, but said in May that it continues “to believe XRP should not be classified as a security.” Ripple is the 3rd largest cryptocurrency by market cap size. It is up 1.50% over the past 24 hours and is currently trading at $0.442301. It can be bought with fiat dollars, credit cards, or debit cards on cryptocurrency exchanges such as CEX.io and Changelly.