XRP Has Nearly Tripled in Value Despite SEC Lawsuit Due to ‘New Phenomenon,’ Says Galaxy Digital CEO

A “new phenomenon” is helping XRP’s price thrive despite the ongoing U.S. Securities and Exchange (SEC) lawsuit against Ripple, according to Galaxy Digital CEO Mike Novogratz.

On December 22nd, 2020, the SEC officially filed a lawsuit against Ripple Labs, alleging that XRP was an unregistered security upon its launch and remains a security to this day. Since the filing of the complaint, XRP has surged over 172% from $0.40 to $1.09 at time of writing.

The head of the digital asset management firm tells his 379,000 Twitter followers that the asset’s price action is a testament to the value of the XRP community.

“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.”

“It’s not just the XRP community. Look at GameStop. Or DOGE (Dogecoin). Resilience. It’s community identity, and that now has value. This is a fairly new phenomenon.”

On an industry level, Novogratz points out that crypto wealth now represents 0.5% of global wealth.

“That means if you don’t have at least 1/2 percent invested in crypto you are short the global benchmark. Most institutions are still at 0. As they move in, that number will go to one then two then…. The cycle has started.” 

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Featured Image: Shutterstock/wacomka