SEC case had no impact on XRP price, says Galaxy Digital CEO

XRP has rebounded from its January low of $0.17 to highs near $2 despite negative sentiment surrounding the SEC case.

The U.S. Securities and Exchange Commission (SEC) sued Ripple Labs and its top executives in December 2020 for what the agency says was the illegal sale of XRP.

Despite this negative development for the blockchain company, the native XRP token has been largely unaffected by the ongoing lawsuit.

According to Mike Novogratz, the CEO of crypto-currency investment firm Galaxy Digital, XRP’s value has increased since the case began. The crypto-currency’s performance over the past 10 months has included more gains, and has even nearly tripled in value, the Galaxy Digital CEO noted.

The early Bitcoin investor went on to say that XRP’s performance illustrates the resilience of the crypto community once it coalesces around a given crypto currency.

According to Novogratz, XRP enjoys the same community resilience seen with the GameStop (GME) stock and Dogecoin (DOGE) corner meme. The SpaceX board member believes that it is the community that gives value to projects and coins, which he qualifies ‘a fairly new phenomenon’.

XRP’s price did plunge shortly after the SEC’s lawsuit was announced, losing nearly 70% in the two weeks between December 21, 2020 and January 3, 2021. The XRP/USD pair saw its value take a nose dive from a high of $0.58 to a low of $0.17, just as other leading crypto-currencies, led by Bitcoin, were leaping to new highs.

The drop came as crypto-currency exchange platforms responded to the SEC’s legal action by delisting XRP or halting its trading. However, the wedge eventually recovered to highs of $2, with the price rebounding from the mini bear market seen in May.

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While XRP’s price remains poised for further gains as it trades above $1, it has failed to match major altcoins like Ethereum or Litecoin in reaching a new all-time high. At the time of writing, XRP is about 67% of its all-time high of $3.40 reached on January 7, 2018.