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Why Ripple has plummeted all of a sudden?

Ripple’s former Boss "Chris Larsen" made a deal with the bank in 2016 and that decision caused him to leave this company. This drama took to another twist last week. The deal was made in banks which made in partner in report according to this DU the partner was allowed to buy a bilion tokens of XRP. That time ripple was worth nothing now Thecompany claims that that the deal was mad in a bad faith by former boss. And we are not going to accept this. Ripple has gained lot of traction recently and it has triple in value and market cap.

Ripples increase in price was very impressive. Now that contract is worth 12 billion dollars . Both parties the banks and the company has filed lawsuits against each other and they are fighting in the court room. The wants ripple to honour the agreement which was previously made by the former boss. Who will have more influence in the future of this digital currency?

Banks are betting that blockchain technology will ultimately replace the slow and costly existing methods of fund transfers. Ripple offers its own solution in XRP but many of the banks want full control and are developing their own blockchains, such as R3’s Corda platform.

A key paragraph in the countersuit states:

Rather, R3 had misrepresented its resources and current ability to perform solely to induce Ripple into executing the Agreements. For example, although R3 represented to Ripple that it would have access to its large consortium of leading banks, R3 knew and had reason to know that several key banks that would be instrumental to Ripple’s success would soon be departing from its consortium.

Ripple company has filed a counter claim stating that it's partner R3 signed the deal in bad faith of the company. Ripple blockchain representatives also claim that, its partner R3 stole their expertise and created their own similar product R3 corda platform. They also provided the email conversation between ripple and CEO of R3 company. It has been explained in the lawsuit, that ripple does not need to hold his end of the deal because it's partner R3 failed to comply to the rules and partnership. Ripple wants to disable the option of buying 5 billion token. Motive behind Ripple’s claim was it's recently price increase as well. Ripple has continuously fallen in previous week from its all time high 3.80 to 1.83 more than 100% downfall.

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Source; Coinmarketcap.com

References

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XRP is under Attack by $12 Billion Lawsuit

Why Ripple has plummeted all of a sudden?

A key paragraph in the countersuit states: