Even after his company, Galaxy Digital Holdings, closing the year with a 136 million U.S dollars gaping hole in its balance sheet, Mike Novogratz is not giving up on cryptocurrencies. Mike projects massive crypto returns in 2019 and beyond.
Mike notes that although he has all reasons to be depressed, there will be “a big adaption in 2019 and 2020.” However, the CEO notes the expected crypto returns are currently buried in the ‘horrible bear market in tokens.’
Novogratz blamed the current bearish momentum on things like a rejection of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) plus a more fierce regulatory control over a number of illegal initial coin offerings (ICO). “These have somehow introduced uncertainty to the market, which led to the most recent selloff,” reported Chepicap.
The Galaxy Digital CEO continued to explain that:
“The SEC got tough on a few fraudulent ICOs. And not just were they tough on them – they mentioned personal investor can go for reparations in most cases. And people got very nervous.”
The loses and the bear market notwithstanding, Novogratz sees a renewed growth in the cryptocurrency market. This will be driven by the Securities and Exchange Commission’s friendlier view of virtual currencies. With a friendlier regulatory control, Mike anticipates that institutions and high net-worth investors will have a clear path to the crypto market.
Apart from the SEC, the CEO of Galaxy Digital acknowledges that the interfacing of e-gaming with the distributed ledger technology has great future use cases.
To prepare for this future, Galaxy Digital, according to its CEO, is “making investments” in the area of e-gaming since people are likely to be attracted to the blockchain technology through ‘low-value items.’
Do you think crypto returns in 2019 can exceed those gained by the end of 2017?
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