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XRP Equity Control Battle: Ripple Blocks Public Share Conversion Amid Valuation Concerns

XRP Equity Control Battle: Ripple Blocks Public Share Conversion Amid Valuation Concerns

Author:
XRP News
Published:
2025-10-18 16:02:13
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In a significant development for XRP's ecosystem, Ripple Labs has taken legal action to prevent the public trading of 4.7 million private XRP shares through Linqto's bankruptcy strategy. The San Francisco-based blockchain company filed a formal Reservation of Rights document, strongly asserting its commitment to maintaining its deliberately private corporate structure. This legal maneuver highlights Ripple's fierce determination to control its equity distribution and prevent unauthorized market entries that could potentially distort XRP's valuation metrics. The opposition comes as Linqto attempts to convert private holdings into a publicly traded fund through bankruptcy proceedings, a move Ripple claims violates its established corporate governance framework. Industry analysts suggest this defensive action reflects Ripple's broader strategy to maintain tight control over XRP's economic model and prevent market fragmentation. The case represents a crucial test for cryptocurrency companies seeking to balance private ownership structures with growing investor demand for public market exposure. As the legal proceedings unfold, market participants are closely watching how this corporate governance stance might impact XRP's long-term valuation and liquidity prospects in the evolving digital asset landscape.

Ripple Challenges Linqto's Bid to Publicly Trade XRP Shares

Ripple has formally opposed Linqto's bankruptcy strategy to convert 4.7 million private shares into a publicly traded fund. The San Francisco-based firm filed a Reservation of Rights, asserting its status as a deliberately private company and blocking unauthorized public market entry.

The legal maneuver underscores Ripple's determination to control its equity structure. Unapproved public trading could distort valuations and create shareholder confusion, the company warned. Market observers note this intervention may set precedents for private tech firms facing similar bankruptcy-driven equity conversions.

A Texas court will weigh these arguments on October 3, 2025, when Judge Alfredo Perez reviews Linqto's restructuring plan. The outcome could redefine boundaries between private share ownership and public market exposure in cryptocurrency ventures.

Ripple and UC Berkeley Launch Digital Assets Research Hub

Ripple has partnered with UC Berkeley to establish a Center for Digital Assets, backed by $1.3 million in RLUSD funding. The collaboration will focus on advancing blockchain technology and digital twin research, targeting practical applications in finance and supply chains.

The initiative merges Ripple's industry expertise with Berkeley's academic rigor, aiming to accelerate real-world adoption of digital assets. This strategic alliance underscores the growing institutional interest in blockchain innovation and its potential to reshape global economic infrastructure.

XRP News Today: Bill Morgan Debunks XRP Centralization Claims Using SEC ETF Filings

Legal filings for XRP exchange-traded funds (ETFs) have become an unlikely battleground in the debate over the XRP Ledger's decentralization. Prominent XRP advocate Bill Morgan is leveraging these documents to counter persistent claims that the network is centralized.

Every institutional applicant for an XRP ETF has described the XRP Ledger as a "public, decentralized, and permissionless blockchain" in their SEC filings. Morgan emphasizes these aren't marketing materials but legally binding disclosures where inaccuracies could lead to severe consequences. "ETF filings are legal documents, not hype," Morgan stated. "If XRPL wasn't decentralized, these institutions couldn't legally describe it that way."

The argument gains significance as crypto analyst Justin Bons recently reignited criticism of top cryptocurrencies' decentralization claims. Morgan's counter positions SEC-approved documents against anecdotal skepticism, creating a compelling case for XRP's decentralized nature.

XRP Rally Gains Momentum as Whales Accumulate 250M Tokens Ahead of $3 Resistance

XRP is attracting renewed market attention as on-chain data reveals whales purchased over 250 million tokens within 48 hours. This aggressive accumulation signals growing institutional confidence as the asset approaches the critical $3.00 resistance level.

The cryptocurrency has climbed steadily from $2.84 to test the psychological $3.00 barrier, where dense sell orders await. Technical indicators now favor bulls—the 9-day EMA has crossed above recent prices, while MACD shows early signs of a bullish reversal. Market participants await whether this momentum can break through overhead resistance that has historically capped rallies.

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