Mike Novogratzthe billionaire founder of crypto asset management company Galaxy Digital, has warned that getting returns of more than 200 on cryptocurrency investments is simply “not normal”.
Speaking at Christie’s Art + Tech summit in New York on Wednesday, Novogratz warned listeners about the strong volatility in the cryptocurrency industry.
“I had friends who had bought a lot of crypto, and it had changed their lives: guys who didn’t make a lot of money but suddenly had a net worth of $5 million in crypto,” Novogratz said.:
“I shook them and made them look me in the eye, [y] I told them: ‘You have to sell half or two thirds of this, it is not normal to earn 200 times your money in investments.’”
And he added that “not everyone is cut out to be an investor” because greed too often gets in the way of rational thought..
Novogratz has also not been shy about criticizing the cryptocurrency industry.. On Tuesday, he vented to attendees at the Bloomberg Crypto Summit his frustration over the ineptitude and bad practices in the industry that have come to light recently.
“It’s very frustrating because sometimes the whole industry seems like a bunch of idiots”said.
His new disapproval of certain practices within the cryptocurrency space comes less than two months after the Terra ecosystem suffered a catastrophic collapsewhich wiped out roughly $50 billion of the digital asset space in the process.
Following the fall, Novogratz, a supporter of the Terra project and famous for his moon-themed tattoo, wrote an open letter in Mayin which he told his followers: “My tattoo will be a constant reminder that venture investing requires humility.”
I’m officially a Lunatic!!! thanks @stablekwon And thank you my friends at Smith Street Tattoos. pic.twitter.com/2wfc00loDs
— Mike Novogratz (@novogratz) January 5, 2022
I’m officially a lunatic!!! Thanks @stablekwon And thanks to my friends at Smith Street Tattoos. pic.twitter.com/2wfc00loDs
Although Novogratz may seem more bearish than usual, especially when combined with the recent market turmoil, ultimately believes that blockchain-based technology will gradually become a foundational part of the future of the modern world.
“Over the next decade, Web3 and blockchain will reshape industries, communities, and the Internet as we know it.blurring the lines between our physical and digital realities,” he said.
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