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, former-LUNAtic Novogratz warned crypto investors about the sheer volatility of the crypto industry.
“I had friends that had bought lots of cryptos, 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 further warned, 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 deceptive when handing out criticism of the crypto industry. On Tuesday he expressed his frustrations about the incompetence and poor practices in the sector that has recently come to light to the representatives of the Bloomberg Crypto Summit.
His recent disapproval of certain practices within the cryptocurrency space comes less than two months after the Terra (LUNA) ecosystem suffered a 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 signed himself with a moon-themed tattoo penned an open letter in May, said that: “My tattoo will be a constant reminder that venture investing requires humility.”
Despite being pessimistic he eventually believes that blockchain-based technology will gradually become a foundational part of the future of the modern world.
He claimed, “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”.
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