Mike Novogratz, CEO of Galaxy Digital, expressed doubts about the future of Dogecoin. The billionaire investor said: “Because there is no institution to buy it, it may not have long-term development opportunities, and at some point, the retail industry will lose interest.”
Novogratz says Dogecoin “has no long legs”
Michael Novogratz, CEO of Galaxy Digital Holdings Ltd., recently discussed with Goldman Sachs the potential of cryptocurrencies, including Dogecoin, and their ability to transform the financial system. His comments were published in a Goldman Sachs report entitled “Encryption: A New Asset Class?” This version was released on May 21.
Someone asked Novogratz: “What do you think of the rise of Dogecoin and other meme coins?” The CEO replied:
Dogecoin is a very speculative asset, more important than Bitcoin. It may not have long-term influence because there is no institution to buy it, and at some point, the retail industry will lose interest.
An executive from Galaxy Digital explained: “Dogecoin was a joke at first, but it has grown for two reasons.” He said, “The most important thing is tribalism in the investment world. With the rise of Gametop, we have also seen it. The same thing, this is driven by a group of young investors who have gained power as financial participants through trading apps and social media platforms.
The billionaire investor continued: “Secondly, the value is showing up in new places because the government is printing a lot of money. When considering crypto assets and stocks such as Gametop that have short-term potential but do not have long-term viability, please It’s important to remember this.”
Another senior executive interviewed by Goldman Sachs about Dogecoin was Michael Sonnenshein, CEO of Grayscale Investments. Someone asked him whether the meme cryptocurrency is “a blessing or a curse of cryptocurrency?” Sonnenshein replied: “Dogecoin proves how easy it is to create digital assets… This shows that investors have carefully studied the use cases and whether the assets are feasible and whether It’s important to be able to attract the attraction of the real world. Solving real-world problems rather than finding solutions to problems that may not exist.”
For a long time, Novogratz has been a Bitcoin bull market. In contrast, he said: “In such a short period of time, there has never been a brand more successful than Bitcoin,” and added: “Today, it has been recognized and believed by very credible people. Therefore, , The whole world voted for their belief that Bitcoin is a store of value.”
Despite this, he pointed out, “People still hold stubborn arguments about this, but every bank we know is building wealth channels for cryptocurrencies. There are 14 entities that own Bitcoin ETFs in the SEC, and most technology companies are also Bitcoin is included in its securities trading. Wallet and interface.” Novogratz concluded:
It is illogical to think that we will make fewer people believe in Bitcoin.
At the same time, there are currently many people who are Dogecoin believers, including Tesla CEO Elon Musk and Shark Tank star Mark Cuban. In the past few months, the price of Mimu has risen sharply, and some people have stated that they have invested in Dogecoin.
Do you agree with Mike Novogratz’s views on Dogecoin? Let us know in the comments section below.
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