Crypto startup, Alibabacoin Foundation, the firm behind Alibabacoin (ABBC) found itself on the wrong side of a Court’s decision.
Alibaba, the multi-billion Chinese ecommerce company, was granted application for a preliminary injunction in a court case which it filed in April against Alibabacoin for using its trademarks to promote their crypto currency.
The case, however, was defiled in April because “Alibaba has not met its burden to establish a reasonable probability that the Court has personal jurisdiction over Alibabacoin.”
In the light of new “evidence obtained through discovery,” the Chinese company through its latest court filing has overturned the startup’s claim that they had no personal jurisdiction.
More so, Alibaba has proved that at least one of Alibabacoin’s investor is from New York, and it is on this ground that Judge Paul Oetken in Manhattan Federal Court announced the last decision.
Banned From Using Alibaba’s Marks
Before now, Dubai-based Alibabacoin Foundation had set up ventures under the Alibaba trademark name. This includes Alibabacoin Foundation (ABBC Foundation); ABBC Block Chain IT Solutions LLC; Alibabacoin General Trading FZE and Alibabacoin Foundation LLC.
However, the new Court ruling means that the crypto startup, including its founders, have been barred from using these Alibaba marks anywhere in the U.S. This will also include any marks, image, designs or other forms of artwork that will be similar to the Alibaba trademark.
Alibabacoin Slumps Following Court Decision
Alibabacoin, the native currency of the Alibabacoin Foundation project has seen a sharp decline after the announcement. There is an ongoing FUD about how long the cryptocurrency can withstand the pressure of being haunted by the huge Alibaba brand.
On the daily trading chart, Alibabacoin (ABBC) have lost nearly half of its value (47.44%), moving from $0.8 to $0.39 within the last 24 hours. Just six days ago, the coin had reached a record peak of $1.61.
Coinmarketcap no longer has data regarding the total market cap of the cryptocurrency, a position that will no doubt worry the coin investors. At this point, the chances of a revival are very slim, though we cannot rule out surprises.
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