Novogratz comments Crypto State
Novogratz comments Crypto State
crypto supporter and CEO of Galaxy Digital, Mike Novogratz, commented on the fiasco between two industry participants-Digital Currency Group (DCG) and Gemini-and how it will influence the entire market.
The American investor noted that the problem was "not good news" for the industry, but it would not contain any massive sales that would affect crypto prices in the next quarter.
The DCG-Gemini-Fiasko
remember that the DCG debacle began after FTX's bankruptcy in November 2022. Shortly after FTX had registered bankruptcy, Genesis stopped with the withdrawal of the users and led "Extreme market defaults and the loss of confidence in the industry through the FTX Implosion".
The liquidity crisis also led to the business partner Gemini von Genesis set the payouts from his credit platform. According to the users of Gemini Earn, genesis reports over $ 900 million. Since then, the problems for Genesis and his parent company Dcg.
early this week, Gemini co-founder Cameron Winklevoss written an open letter to the board of DCG and called for the immediate dismissal of CEO Barry Silbert for misleading statements about the financial situation of Genesis.
crypto is in a transition phase: Novogratz
Like many other crypto supporters, the CEO from Galaxy Digital believes that the bear market in the industry offers an opportunity to recover and rebuild.
According to him, crypto and growth stocks experienced a "big washing out" last year, and several companies were hindered, which led to a loss of sales.
Novogratz explained that the cryptom market is neither in a good nor in a bad position, since it is confronted with several experiences that have never existed before. As a result, companies and individuals have to reduce their costs to survive the period.
Mike Novogratz. CNBC
Companies that dismantle jobs do the right
Since the crypto crash in April, crypto companies have released thousands of employees to keep themselves over water. The trend towards the job cuts continued until the new year, with companies like Coinbase go into a second round of layoffs.
With reference to the decision of Coinbase to shorten his workforce Again said Novogratz that the CEOs took such a step.
"2022 was a big washing out for growth stocks and for crypto, and everything that had to do with it was hindered, as many of the crypto shares did. I think CEOS Brian von Coinbase and all rational COs do the right thing," said Novogratz.
Novograms found that 2023 would be a year of survival and the upswing if the market heals.
"The prospects for crypto are not terrible, but they are not great. We have regulatory headwind that we did not have before we have time to heal and rebuild the narrative, and so people will reduce the costs and survive this transition period," he said.
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