We’ve often heard the argument that if For the digital currency sector to achieve full legitimacy, it must draw institutional investors, and according to ex-hedge fund magnate Mike Novogratz, this is precisely on the horizon.
Having worked previously with Fortress Investment Group, Novogratz was recognized as a billionaire in both 2007 and 2008. billionaire by Forbes With his hedge fund career now behind him, Novogratz has thrown himself into the crypto space, amassing a fortune, notably earning over $250 million from ether in 2017, which he has consequently reinvested into bitcoin and various other altcoins. placed about ten percent of Novogratz has recently secured over $250 million to kickstart Galaxy, a merchant bank dedicated to trading digital assets and facilitating primary investments in blockchain enterprises.
Mike Novogratz, Image from ToshiTimes
The Institutions are Coming
During a session at Blockchain Week in Seoul, South Korea, Novogratz shared his perspectives on the future of crypto, suggesting that a 'herd of institutional investors' is making its way into the arena, sparking speculation about crypto's quest for legitimacy nearing fruition.
He confidently asserts, 'I believe institutional investors are gradually coming to understand that blockchain will evolve into the internet or web 3.0, compelling them to participate just as they did with the web.' Novogratz was interviewed Their inaugural step into the crypto world will likely be via venture capital funds, and many are already ahead of the curve by investing in names like Sequoia, Polychain, and Benchmark, amongst other VC funds dabbling in this sector.
The next phase for them involves direct acquisition of coins and/or initial coin offerings (ICOs), with numerous investors already engaging in ICOs via their venture fund investments.
Prominent figures such as Kyle Samani, co-founder and managing partner of Multicoin Capital, echo Novogratz’s insights, suggesting that the hurdles that previously hindered institutional investor interest have been largely addressed.
Samani highlights custody as the last major challenge facing retail and institutional investors, although he is optimistic this barrier will be resolved within a year.
He notes, 'Numerous investors have seen custodianship as the final hurdle. Over the coming year, the market will recognize that the issue of custodianship has been addressed, paving the way for a substantial flow of capital.' believe that many of the hurdles Some critics might argue that Novogratz made a cautious prediction surrounding bitcoin, suggesting a $10,000 price point by the close of 2018. This projection materialized as the leading cryptocurrency neared $20,000 just before Christmas 2017, only to plummet by approximately $13,000 from its peak price.
Currently, Novogratz’s earlier prediction seems more plausible, with Forbes indicating that bitcoin might settle around $10,000 barring unforeseen regulatory developments.
Price Predictions
Late last year, Novogratz offered Despite his clear position on bitcoin, Novogratz holds an even greater enthusiasm for a particular altcoin... Dubbed the 'Ethereum killer' owing to its proof-of-stake (PoS) consensus protocol, Novogratz envisions EOS’s blockchain architecture propelling it beyond the achievements of any major cryptocurrency.
In detailing the coin and its PoS model, Novogratz explains that rather than having countless staking participants, EOS chooses just 20, each boasting significant computational prowess, which allows its blockchain to vastly outpace others. It already handles 5,000 transactions per second with expectations to hit 50,000 per second soon. also predicted that bitcoin At this moment, EOS ranks as the fifth-largest cryptocurrency by market cap, a spot once occupied by Litecoin.
The Ethereum Killer …
Nick Marinoff has been delving into the world of cryptocurrency since 2014, contributing as a lead content writer and news editor for Money & Tech, serving as PR writer for Game Credits, and acting as a senior writer for both Bitcoinist and News BTC. EOS Crypto whales have moved over $500 million in Bitcoin (BTC) and Ethereum (ETH). Are they strategically positioning themselves for Binofi (BINO)’s potential explosive growth within the DeFi movement?
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