Billionaire investor Mike Novogratz says a “new phenomenon” of community resilience has led XRP’s price to triple despite an ongoing lawsuit by the U.S. Securities and Exchange Commission (SEC).
Former hedge fund manager Novogratz is the Founder and CEO of Galaxy Digital, “a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector.”
Novogratz, who founded Galaxy Digital in 2018, says XRP’s price has managed to thrive despite increased scrutiny by the SEC.
The regulatory body filed a lawsuit against XRP creator Ripple Labs in December 2020, alleging the company had engaged in the sale of an unregistered security. The price of XRP at the time of the suit’s filing was $0.40, nearly a third of today’s price.
In a tweet published last Sunday (October 17), Novogratz pointed out that the price of XRP token had nearly tripled since the SEC’s actions. Novogratz said it was a testament to the cryptoasset’s community for being “damn resilient.”
Novogratz continued, comparing XRP’s community support to that of GameStop Corp. (NYSE: GME), the shares of which managed a surge in price thanks in large part to the action of online trading forums, including the infamous subreddit r/WallStreetBets.
According to Novogratz, community identity now has value, which represents a “fairly new phenomenon.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.