Michael Novogratz, a former partner of Goldman Sachs and the founder of Galaxy Digital, said that his cryptocurrency bank was adversely affected by the recent collapse of the cryptography market.
Billionaire and cryptocurrency advocate Michael Novogratz is still confident in the cryptocurrency market, despite his current bearish trend. On Tuesday, Bloomberg published an interview with the founder of the cryptocurrency bank Galaxy Digital Holdings, in which he explains his current position in the crypto-space. Novogratz, a former hedge fund manager, was surprised to see that bitcoin fell below $ 6,000, and he is probably not alone.
“I really thought Bitcoin would hold on $ 6,200. He stayed there for four months. It seemed to me that the sale was over. But then Bitcoin Cash decided to fork out again. At the same time, the SEC issued and sanctioned several ICOs and said: “Oh, by the way, your investors can sue the losses.” It scared many people, ”the billionaire said. explained.
In late November, its Galaxy Digital reported a loss of $ 136 million in the past nine months. Novogratz was ready for the first bearish wave, which began when Bitcoin left its annual peak. He said that he believes that cryptospace can be a genuine structural shift in the world and that he can successfully hedge his portfolio, which he actually managed to do during the first long-term bearish movement. However, when the cryptocurrency market began to suddenly collapse in mid-November, many investors, including Novogratz, were not ready, which was a real pain and remains.
To the question whether the initial coin offerings (ICO) will ever come back, Novogratz said that the ICO market is already dead. Indeed, the ICO space has seen a lot of fraud, which has discouraged many investors.
“There was a lot of fraud, there was a lot of hype, and people were losing money. The SEC was around the corner, so they pulled the brakes. But the SEC does not want to kill this innovation; we talked with them in detail. I think that you will see the security tokens market – for example, a real estate portfolio that is tokenized, ”said the CEO of Galaxy Digital.
“These are not things that cost between $ 1 and $ 1000. These are things that bring 14 percent, and they will be sold to qualified buyers. It sounds damn less sexy, but you will see that this business will grow, ”he added.
Novogratz is not the only one who foresees the expansion of the security tokens industry. After the hype around the ICO has disappeared, many institutional investors consider security tokens to be the next megatrend.