Mike Novogratz, the veteran investor behind crypto-focused merchant bank Galaxy Digital, shared insights on the impact of the U.S Securities and Exchange Commission (SEC) lawsuit against Ripple on XRP. Despite the bombshell suit, XRP is still alive and kicking, Novogratz says.
Novogratz: XRP Price Has Tripled Since SEC Lawsuit
Novogratz said in a tweet on Sunday that the price of the XRP token has not fallen. In fact, the longtime Bitcoin bull notes that it has nearly tripled since the SEC filed its complaint against blockchain payments startup Ripple in December 2020. He believes that this underscores cryptocurrency communities’ resilience.
In truth, the SEC didn’t expect blowback when it sued Ripple. Shortly after the suit was filed, the crypto community spurred an independent battle zone unexpected by the agency. There was a flood of social media action from crypto enthusiasts, vexed by the betrayal from a regulator claiming to safeguard their interests.
As the case continues to drag on, most people agree that the underlying issue is a lack of clarity as to how crypto-assets should be regulated without wrecking the sector or unfairly targeting firms.
The price of XRP dropped by circa 60% after the suit was announced, on account of a handful of exchanges delisting the crypto from their trading platforms. While some investors lost a lot of money as they were caught off-guard, XRP managed to bounce back as Ripple got the hang of the lawsuit. XRP holders also scored a huge win recently after they were granted Amicus Curiae — or friend of the court— status by the judge. This means that they can assist the court in future legal briefings.
Novogratz, however, clarified in another tweet that it’s not just the XRP community that has proven resilient, citing GameStop and Doge whose values were pushed higher earlier this year by dedicated groups of traders.
In April, Novogratz, who claims to be a large Ripple shareholder, posited that the XRP rally at the time that took the coin’s price from $0.40 to $1.60 in the span of four weeks didn’t make a lot of sense to him. After the XRP Army blasted him on Twitter, even asking him to sell his Ripple stake, Novogratz went on to liken XRP fans to Trump supporters.