Crypto

Galaxy Digital’s Novogratz says crypto users will seek out ‘safe and trusted’ players – BNN Bloomberg

(Bloomberg) – Crypto billionaire Mike Novogratz says the “crisis of confidence” in the world of digital assets will cause more cryptocurrency users to seek out institutional players like Fidelity Investments.

The founder of Galaxy Digital Holdings Ltd., a crypto financial services company, told CNBC that more people will put their money in “safe and trusted custodians.”

“The big winners will be people like Fidelity who just released their crypto product,” Novogratz said. He previously touted Fidelity’s involvement in the industry in September when Bitcoin lost about half its value. The biggest digital currency is now down 65% so far this year.

He added that he sees a buying opportunity for crypto in the long term, but it will take time for the industry to restore confidence.

Galaxy Digital previously disclosed exposure of $76.8 million to FTX.com. Other crypto-related firms have made similar disclosures amid the exchange’s collapse.

Sam Bankman-Fried’s FTX empire filed for bankruptcy on November 11. Court documents showed that FTX-related entities owed more than $3 billion to their 50 largest unsecured creditors.

“We definitely have a crisis of confidence in this market,” Novogratz told CNBC. “We’re not off the hook yet.”

FTX’s collapse adds to a growing number of scandals that have rocked the crypto industry in recent months. Earlier this year, the collapse of TerraUSD put the spotlight on Novogratz, which had backed Terraform Labs, the company behind Terra and Luna. In the aftermath, Novogratz called it a “great idea that failed.”

©2022 Bloomberg LP



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