Despite a lingering lawsuit against the company by the Securities And Exchange Commission (SEC), Ripple has bought out its Series C investors.
Despite the shadow of the lawsuit filed against the company by SEC, Ripple announced on Tuesday that it has bought out its Series C investors who were instrumental to the company raising a funding of $200 million in 2019.
Excited to announce @Ripple bought back our Series C (Dec 2019) shares at a $15B valuation! 1/4
— Brad Garlinghouse (@bgarlinghouse) January 26, 2022
The company announced that it bought off the investors with funds that it has on hand. The consequence of the action is that Ripple, the company behind XRP and the highest holder of the token is presently valued at $15 billion. This is nearly a third more addition to the valuation of the company which stood at $9.8 billion in December 2019, when it conducted the Series C token sale.
The buyback is an indication that the company is feeling bullish despite the lawsuit that has dragged on for more than a year. Among the investors who benefited from the buyout is Tetragon Financial Group, the lead investor that sued the company in early 2020 after the SEC filed its suit against Ripple.
A Strong Balance Sheet
Ripple spokesperson emphasized that the company’s books are strong and that they hold at least $1 billion in the bank.
“Our extremely strong position in the market,” and added that “Ripple is cash flow positive, has $1B in the bank and a strong balance sheet.”
The company added that its “On Demand Liquidity” service has increased through an expansion to 22 markets. It added that 2021 was its best performing year with its business volume doubling within the year.
Last year showed continued maturation for the #crypto space, but what will 2022 hold? Our leadership team predicts:
✔️Explosive growth in crypto payments
✔️New pressure to refine NFT infrastructurehttps://t.co/pg7dkBbNuf
— Ripple (@Ripple) January 24, 2022
The recent statement by Ripple counters skeptics who maintain that the company’s business model may not be as viable as it claims. There have been allegations that Ripple’s main source of income is the sale of its XRP tokens.
Founded in 2011, Ripple claims that it is bridging the international remittance service through its cryptocurrency software service and that it’s software helps banks to meet international remittance needs.
Double Standards For XRP And ETH
The SEC investigated Ripple and Ethereum at the same period but moved against Ripple. This is one of the defense points that Ripple has presented against the agency in its aggressive defense.
Even though legal experts are of the opinion that Ripple would likely lose the case, the company has so far done well in having several rulings in its favor in the course of the adjudication.
XRP is currently trading at $0.61 even though its investors believe that the token would have been valued more without the burden of the SEC lawsuit,