The San Franciscan cryptocurrency has announced on the 25th of January its plan to buy back a bunch of shares it sold in 2019. The courtroom scenes with the SEC are not stalling the plans of the firm in any way. As per the reports, the crypto project sold a portion of its share as a part of a fundraiser in 2019. Now, the shares bought back have tossed the market cap of Rippe way up to higher than anyone anticipated.
Anyone following Ripple in recent times would know its entanglements with the Securities and Exchange Commission. The federal body charged Ripple with selling XRP coins as securities against the law. The case has been investigated for just over a year now, and it surely has had its impact on the value of XRP. The coin in the last months has lost around 80% of its all-time high price of $3.40 and currently trades at $0.60. However, the recent developments in the lawsuit seemed positive enough to give the coin impetus it needed.
Now, the crypto firm posts the best cash flow value of its career with nearly $1 billion in the bank. Since 2021 Ripple has been executing its plans to diversify the market into NFTs and central bank currencies. No doubt that the firm has posted some positive outcomes from these new ventures. CEO Brad Garlinghouse of Ripple considers 2021 to be the “strongest” ever since its establishment, thanks to the $1 billion cash flow. Ripple achieved this commendable feat despite pressures from the SEC.
The recent purchase that skyrocketed the market cap of Ripple was signed with Tetragon. This UK-based company was one of the primary investors of Ripple in 2019. It was a fundraising campaign that brought home nearly $200 million for Ripple. But things turned bitter when Ripple lost its market value by a large margin, and Tetragon was quick enough to file a lawsuit against the coin. The idea was to forcefully sell the shares back to Ripple. As the lawsuit did not go as planned, Tetragon had to pay the legal fees of Ripple in addition to losing the case.
But recent reports confirm that Ripple has bought back the shares from Tetragon. This homecoming has increased the market cap of the coin and is currently valued at $15 billion. It should be noted that the coin has posted a whopping growth of $5 million in the last two years. As the NFT market has grown to become one of the most profitable areas, we can see Ripple going for a full dip in the coming years. Click here to see how the coin’s price prediction may change owing to these recent events.