Crypto tycoon Novogratz's cognitive upgrade: from questioning XRP, ADA to affirming community power

In the cryptocurrency market, few individuals have experienced such a clear shift in perspective as Mike Novogratz. The Galaxy CEO and crypto magnate recently publicly apologized for his previous misjudgments regarding XRP and Cardano (ADA), and highly praised the resilience of the communities behind these two projects.

From Skeptic to Investor

Novogratz’s change of attitude towards XRP is a classic example of the evolution of institutional investor narratives over the past decade.

Initially, he was reserved about XRP due to concerns over centralization. As an early supporter of Bitcoin and Ethereum, he believed that Ripple’s control of approximately 50% of XRP supply was a critical weakness. In early interviews, he was not optimistic about XRP’s prospects, attributing its rise to retail investors lacking knowledge of tokenomics.

After the SEC filed a lawsuit against Ripple in December 2020, Novogratz further distanced himself from the project. Even during the 2021 bull market when XRP’s price surged (currently back to $2.08), he chose to ignore it. He stated at the time: “You can say anything about them. It’s like 9/11 conspiracy theories. Sometimes they just refuse to accept the facts.”

He also previously criticized Cardano, calling it a “strange cult,” but now he admits that IOHK founder Charles Hoskinson has successfully built a highly cohesive community, whose influence exceeded his expectations (ADA’s current price is $0.40).

Deep Reflection After the Lawsuit

After Ripple and the XRP community defeated the SEC and drove the price higher, Novogratz’s attitude underwent a fundamental change.

He recently admitted on a podcast that he had misjudged XRP: “My assessment of XRP was way off. I really thought the SEC lawsuit would wipe it out completely, but I didn’t expect the community to hold the line. Brad Garlinghouse and the team’s fighting spirit, along with the loyalty of the ‘XRP Army,’ far exceeded my expectations.”

This crypto magnate now realizes that the community’s refusal to sell during a long legal battle and their continued support for the project is not obsession or blind worship, but a genuine collective strength. This power is enough to withstand external doubts and even influence policy environments.

Reassessing Community Power

Novogratz’s change in perspective reflects a broader industry trend: institutional investors are beginning to recognize the value of community cohesion in crypto projects. Retail investors, once seen as “irrational,” are now viewed as indicators of project resilience and long-term vitality.

The XRP and ADA communities have demonstrated through concrete actions their steadfast belief amid regulatory pressures and market volatility, undoubtedly changing the industry’s evaluation framework for these projects.