Mike Novogratz clashed with the XRP community after questioning the token rally. Galaxy Digital CEO Mike Novogratz defended his comments on XRP after receiving feedback from the token community.
In a recent Bloomberg interview, the famous billionaire named Dogecoin the bubble.
Novogratz also said that the XRP rally didn’t make sense to him because its issuer, Ripple Labs, was sued by the US Securities and Exchange Commission. Novogratz emphasizes that the price increase of XRP does not make much sense to him.
Attorney John E. Deaton, who spearheaded the XRP community’s effort to intervene in Ripple’s legal battle with the SEC, warned Novogratz that Ethereum could be the institution’s next target.
In response, Novogratz claims that he is actually a large shareholder of Ripple and simply fails to understand the increase in the controversial cryptocurrency.
Ethereum’s securities status remains uncertain
The XRP community pointed out that the SEC has yet to determine the securities status of Ethereum.
Indeed, Dugan Bliss, senior judicial adviser at the SEC, recently announced that the agency has not taken a formal position on this issue.
So I want to clarify that this is my understanding of the current situation and I don’t want to be overly technical. However, the SEC itself did not take a formal position, as I understand it. There is no position it takes to say that Ethereum is not a security.
It is not yet clear whether SEC chief Gary Gensler changed his view on the issue after he told the New York Times during a 2018 interview that both Ethereum and XRP are a strong case for classification as unregistered securities.