Galaxy Digital CEO Mike Novogratz doubts Dougcoin’s future. The billionaire investor stated that “it does not have long-term legs because no institution is buying it and at some point, will lose retail interest.”
Novogratz says Dogcoin ‘doesn’t have long legs’
Michael Novogratz, CEO of Galaxy Digital Holdings Ltd., recently discussed with Goldman Sachs the potential of cryptocurrencies including Dogcoin and their ability to transform the financial system and beyond. His comment “Crypto: A New Asset Class?” The name is published in the Goldman Sachs report. Which was published on 21 May.
Novograts was asked: “What do you think about the rise of Dogcoin and other meme coins?” The CEO replied:
Dogcoin is a very speculative asset, much more so than bitcoin. It is unlikely to last long because no entity is buying it and at some point, the retail will lose interest.
The Galaxy Digital executive explained that “Dogcoin started as a joke and grew for two reasons.” He added that “Investor is first and foremost tribalism in the community. This is the same thing that we saw with the rise in GameStop, driven by a young community of investors who were supported by financial players through trading apps and social media platforms As has been empowered. “
The billionaire investor continued: “Secondly, the value is appearing in new places because the government is printing a lot of money. This is important to keep in mind when thinking about some crypto assets and equities such as GameStop, which have short-term potential but not long-term viability. “
Another executive who was interviewed by Goldman Sachs about Dogcoin was Michael Sonenshine, CEO of Grayscale Investments. He was asked if mem cryptocurrency is “a blessing or a curse for crypto?” Sonenshine replied: “Dogcoin is a demonstration of how easy it is to create a digital asset … It is home to how important it is for investors to examine use cases and whether the property is viable and has traction in the real world Has the ability to achieve. Solving a real-world problem versus looking for a problem that may not exist. “
Novogratz has long been a bitcoin bull market. In comparison, he said that “there has never been a more successful brand built in such a short time” than Bitcoin, adding that “today, it is recognized and trusted by exceptionally reliable people. So the world has Voted that they believe bitcoin is a storehouse of value. “
Nevertheless, he pointed out that “people still make stubborn arguments against it, but we know that every single bank is creating a money channel for crypto, 14 entities have SEC-compliant bitcoin ETFs, and most tech companies” The wallet and the interface Bitcoin is building. ”Novogratz concluded:
To think that we will have fewer people believing in bitcoin is not logical.
Meanwhile, many people currently believe in Dogcoin, including Tesla CEO Elon Musk and Shark Tank star Mark Cuban. The price of mem coins has gone up considerably in the past months and many people have said that they have made a fortune Investment in DogCoin.
Do you agree with Mike Novograts about Dogcoin? Let us know in the comments section below.
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