Cryptocurrency Surge Sent Lawsuit Stake Soaring to $16 Billion
- More contract battles forecast as values fluctuate wildly
- What happens if the currency is worth more than the business?
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When two blockchain developers sued one another over an options deal in September, the stakes were high at $1.1 billion. Four months later, they were fighting over a contract valued at $16.6 billion.
It’s a side effect of the recent surge in the value of virtual currencies, in particular Ripple Lab Inc.’s XRP. While all cryptocurrencies were on a tear last year, XRP led the pack. It climbed from 22 cents in September to $3.32 on Jan. 4. Since then it’s plunged by about two-thirds, underscoring the volatility of contracts tied to them.