The extraordinary profits observed in the cryptocurrency market, according to ex-LUNAtic Mike Novogratz, are just unsustainable.
Making more than 200X returns on cryptocurrency investments is “not normal,” according to Mike Novogratz, the billionaire founder of crypto asset management company Galaxy Digital.
Novogratz forewarned attendees of the Christie’s Art + Tech Summit in New York on Wednesday about the cryptocurrency market’s extreme volatility.
“I had friends that had bought lots of crypto, and it had changed their lives — guys who didn’t make a whole lot of money but all of a sudden had a $5 million net worth in crypto,” said Novogratz.
“I shook them and I made them look me in the eye, [and] I said, ‘You have to sell half or two thirds of this, it’s not normal to make 200 times your money on things.’”
He added another word of warning, stating that “not everyone is made to be an investor” since greed all too frequently clouds judgment.
Additionally, Novogratz hasn’t held back when it comes to criticizing the cryptocurrency sector. He vented his resentment to the guests of the Bloomberg Crypto Summit on Tuesday about the lack of skill and unethical behavior in the industry that has just come to light.
“It’s frustrating as heck because at times the whole industry looks like a bunch of idiots,” he said.
Less than two months after the Terra (LUNA) ecosystem saw a catastrophic meltdown, wiping out over $50 billion from the digital asset sector, he has developed a newfound distaste of some behaviors inside the cryptocurrency space.
After the controversy, Novogratz, an outspoken supporter of the Terra project who is well-known for having a tattoo of the moon, wrote an open letter to his supporters in May. In it, he stated: “My tattoo will be a constant reminder that venture investing requires humility.”
Even though Novogratz may come across as more negative than normal, particularly in light of the current market turbulence, he is ultimately optimistic that blockchain-based technology will gradually come to underpin the future of the contemporary era.
“Over the next decade, Web3 and blockchains will reshape industries, communities, and the internet as we know it, blurring the lines between our physical and digital realities,” he said.
