A notable reversal from Galaxy Investment Management’s CEO Michael Novogratz has emerged as he publicly acknowledged a strategic investment in XRP, signaling a shift from his earlier skepticism that dated to the SEC’s 2020 lawsuit against Ripple. Novogratz had originally doubted XRP’s ability to survive, asserting that Ripple’s substantial influence over the token and the regulatory pressure applied by the SEC would likely crush the project, and he publicly stated, “I didn’t think XRP would last.” That initial assessment rested on concerns about decentralization and a contested use case, which observers saw as valid given the uncertainty surrounding securities law and market access. At the time, the expectation among many analysts was that legal and market challenges could erode support and diminish the token’s prospects. Layer 1 blockchains often face scalability tradeoffs that can affect tokens like XRP when operating on underlying infrastructures.
The subsequent change in Novogratz’s view recognizes a sequence of developments that altered that risk calculus, as he admitted being wrong about XRP’s longevity and resilience after Ripple’s legal strategy produced favorable outcomes. He praised Ripple’s performance in court and highlighted the SEC lawsuit settlement in August 2025 as a decisive moment that removed a major regulatory overhang, thereby improving legal clarity and institutional confidence. This shift was reflected in market performance, with Novogratz noting a 47.4% price rally since November 2024 and XRP reaching about $2.87 by September 2025, outcomes that contributed to its reappearance among leading altcoins. In addition, Novogratz cited the 47.4% price rally as a concrete indicator that institutional trust in XRP was strengthening.
Novogratz also emphasized the role of the XRP community, describing it as exceptionally loyal and passionate, and suggesting that this social cohesion functions as a form of value beyond raw on-chain metrics. He compared the community’s intensity to a “cult” in sociological terms, indicating a shared identity and narrative focused on payments and trust, and argued that such conviction can underpin project survival even when transaction volume remains modest relative to blockchains like Solana. While acknowledging these strengths, he maintained a cautionary stance on risks, noting that technical fundamentals and regulatory dynamics still matter, and that investors should weigh community-driven narratives alongside measurable network activity and legal developments. He added that community identity can act as a durable asset that helps sustain token value through legal and market challenges.
