Wall Street Exec Mike Novogratz: A ‘Herd of Institutional Investors’ Is Moving Into Crypto
One-time hedge fund billionaire Mike Novogratz said that a “herd of institutional investors” is moving towards cryptocurrencies. He shared this in a keynote speech at Blockchain Week Korea.
When he was asked the reason behind why institutional investors will take part in ICOs and the current thinking among institutional investors. He explained that the institutional investors are gradually realizing that blockchain will be Internet or Web 3.0 and they’ll want to participate just like they want to participate in the Web.
“Their first way of participating is going to be through venture-capital funds. Many of them are already participating because they’ve invested in Sequoia or Polychain or Benchmark or many of the other VC funds that invest in this area. The second step for them will be buying the coins and/or the ICOs themselves, but many of them are participating in the ICOs already through their venture investments.”
He further added,
“EOS is the first blockchain where commercial applications can be built and experimented with. Lots of people find that very appealing. EOS’s critics say it’s not decentralized enough and that’s a very fair debate, back and forth, that you can participate in. I believe that there will be markets for many different blockchains. We’ll see over the next three, perhaps four to five, years which blockchains that other projects want to build on and which one’s consumers value and place their trust in.”
Earlier, Novogratz led a famous macro investment fund at Fortress Investment Group, where he oversaw close to $9 billion in fund assets. And was estimated to have a personal fortune of $2.3 billion. But due to the unfortunate bet on Brazilian assets in 2015 after taking a losing position in a Swiss Franc versus Euro currency trade caused Novogratz’s temporary retirement and the closure of his fund. Later he rose again after gaining $250 million gain on cryptocurrency, Ether, in 2017.
He has invested 10% of the total wealth into Bitcoin, Ether, and other cryptocurrencies. He raised $250 million to launch a merchant bank, Galaxy so as to enable cryptocurrency trading. He even made bets on EOS and its smart-contracts platform, EOS.IO.
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