Ten months after the start of the lawsuit between Ripple and the SEC, the price of XRP has increased fivefold after a 70% dump. Mike Novogratz, CEO of Galaxy Digital, commented: “Resilience of the crypto community”.
Ripple (XRP) increases in price despite lawsuit with SEC
It was December 2020 when the US Security Exchange Commission – SEC had filed a lawsuit against Ripple over XRP sales on the market. The American agency that oversees financial markets had revealed that the accusation was against Ripple Labs, former CEO Christian Larsen and current CEO Bradley Garlinghouse.
In the last 10 months, amid bureaucracy, mysteries and a few revelations, the lawsuit seems not to have been resolved yet, while XRP continues to be present on the crypto market.
After the drop in XRP’s price to $0.22, recorded immediately after the news of the Ripple-SEC lawsuit, XRP was part of the rally last April 2021, touching $1.85 and fluctuating to $1.11 today.
That’s a 5x price growth for XRP when considering the timeframe from December 2020 to today, a period during which Ripple continues to be in court dragged by the SEC.
Mike Novogratz’s take on the Ripple community
Looking at these results, renowned investor Mike Novogratz, CEO of Digital Galaxy, wanted to share his thoughts on the social network of crypto-lovers, Twitter.
The value of $XRP has actually almost tripled since the SEC actions. It hasn’t plummeted. It’s a testament to the fact that once communities are formed with shared interest they are damn resilient. https://t.co/0IPcd8wyuN
— Mike Novogratz (@novogratz) October 17, 2021
“The value of $XRP has actually almost tripled since the SEC actions. It hasn’t plummeted. It’s a testament to the fact that once communities are formed with shared interest they are damn resilient”.
By “tripled” Novogratz is referring to the price of XRP at the specific time Ripple was charged, regardless of the $0.22 price dump that happened soon after.
Continuing with the conversation, Novogratz reiterates the concept of the crypto community sharing an interest by defining it as a “new phenomenon”. Here’s what he wrote:
“It’s not just the XRP community. Look at GameStop. Or Doge. Resilience. It’s community identity and that now has value. This is a fairly new phenomenon”.
Ripple-SEC lawsuit: where are we?
Meanwhile, the latest update on the long-standing and mysterious Ripple-SEC lawsuit dates back to last month, with Garlinghouse stating that there are no assumptions that can lead to a settlement.
According to Garlinghouse, the problem is linked to the lack of certainty in the crypto sector, not least because of the regulatory clarity that is still non-existent at the moment.
Not only that, since developments have revealed that the SEC blames Ripple for being a security and not a normal crypto like Bitcoin and Ethereum, the company would have to have specific licences to sell XRP.
In this regard, Garlinghouse strongly disagreed with the SEC statement, and also “accused” the SEC of acting not on behalf of investors, but to determine winners and losers in the crypto sector.
In fact, with the price dropping 70% immediately after the news of the lawsuit, many investors would have filed a class action lawsuit. The same investors that the SEC was called upon to protect.
XRP climbs up the rankings, closing in on BTC and ETH
What was for a few years the third (even second) crypto by market capitalization, collapsed also due to the explosion of DeFi and NFTs, is now (rising) in sixth position.
With a total market cap of $52 billion and a dominance of just over 2%, the XRP cross-border payment crypto still holds its appeal, surpassing Dogecoin (DOGE), Uniswap (UNI) and the historical crypto Litecoin (LTC).
Speaking of which, at the beginning of the year Novogratz had questioned Litecoin itself, explaining that he did not see any attractive properties for this blockchain and crypto to be adopted by the masses.