Expert Claims That XRP Price Remains Unaffected By SEC Lawsuit
Crypto expert and CEP of Galaxy Digital Mike Novogratz says that he believes that the United States Securities and Exchange Commission’s (SEC) legal action against Ripple has not affected the price movement of XRP.
In a tweet, Novogratz said that XRP’s price action has nearly tripled since the SEC slammed a lawsuit on Ripple, indicating that the community is not allowing that move to dampen their belief in the token.
Ripple, a San Francisco-based blockchain company, was given the legal summons to appear in court over a case brought by the SEC. The SEC had accused Ripple of conducting a $1.3 billion unregistered securities offering. The SEC also secured trading suspensions against Ripple, leading to a 60% fall in XRP price. Ripple bounced back, however, and managed to regain some momentum.
Despite the bounce back, XRP is still off from its all-time high by 67%. The majority of the XRP community believe that the SEC’s lawsuit was mostly responsible for the fall. An argument that supports this is that despite the lawsuit, XRp has managed to gain some impressive momentum, nearly hitting a triple amount since the case began. Supporters argue that if the coin can do that beneath a blanket of suits, then it could perform stronger if the legal actions were not shadowing its momentum.
In a subsequent tweet, Novogratz went on to name meme cryptocurrency Dogecoin, as well as GameStop, the business whose stock was pumped to the moon by a Reddit army of retail traders in early 2021, to buttress his stance.
Novogratz remarked in April that the XRP rise didn’t make sense to him after the controversial token’s price increased fourfold in just one month. In response to community criticism, Novogratz compared the XRP Army to deranged conspiracy theorists. Last year, Ripple CEO Brad Garlinghouse criticized Novogratz’s apparent poor price forecast track record.
The XRP community has shown considerable faith in the token and made strong legal moves to be involved in the case. They achieved some considerable success in that regard as the court gave them permission to file a court brief known as amici curiae which would allow them to indirectly engage in the lawsuit process.
Despite an increase in calls for the SEC and Central Bank to impose stronger regulations on cryptocurrencies, it appears that the regulatory body is somewhat reluctant to do that. In fact, one could say that the SEC is willing to promote cryptocurrencies in a safe way, going by the number of crypto ETFs that are about to be approved for public trading.
Most industry experts see Ripple’s case with the SEC as an isolated case bothering on standard practices and believe that given the right approach, both parties can come to a mutually beneficial solution. The Ripple community wants the case thrown out as it has dragged on for a long time and has led to unpleasant price movements since January.
Whatever the decision of the court, Novogratz believes that the resilience of the XRP community will help stabilize the coin.
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