Mike Novogratz, the billionaire founder of crypto asset management firm Galaxy Digital, has warned that making more than 200X returns on crypto investments is simply “not normal.”
Speaking at the Christie’s Art + Tech Summit in New York on Wednesday, Novogratz warned listeners about the steep volatility of the crypto industry.
“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 offered further caution, saying that “not everyone is made to be an investor” because greed too often gets in the way of rational thinking.
Novogratz also hasn’t been shy when it comes to handing out criticism of the crypto industry. On Tuesday, he vented his frustrations about the ineptitude and poor practices in the sector that have recently come to light to the attendees of the Bloomberg Crypto Summit.
“It’s frustrating as heck because at times the whole industry looks like a bunch of idiots,” he said.
His newfound disapproval of certain practices within the cryptocurrency space comes less than two months after the Terra ecosystem suffered a catastrophic meltdown, shaving off approximately $50 billion from the digital asset space in the process.
Following the fallout, Novogratz, a vocal advocate of the Terra project who famously inked himself with a moon-themed tattoo, penned an open letter in May, telling 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
While Novogratz may seem more pessimistic than usual, especially when combined with the recent market turmoil, he 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 blockchains will reshape industries, communities and the internet as we know it, blurring the lines between our physical and digital realities,” he said.
