Crypto billionaire Mike Novogratz warns against 200x returns from crypto

• Billionaire Mike Novogratz said 200x return on crypto is abnormal where greed trumps rational thinking.
• Novogratz admitted he was “absolutely wrong” about the state of crypto leverage and said the SEC should do more to protect retail investors.

Billionaire investor and founder of Galaxy Digital, Mike Novogratz, recently spoke about the state of the crypto market. Speaking at the Christie’s Art + Tech Summit in New York on Wednesday, June 20, Novogratz warned about the recent volatility in the crypto space.

He added that getting 200x returns on crypto investments is simply “not normal”. While adding further caution, Novogratz said: “not everyone is cut out to be an investor”. He added that greed can too often get in the way of rational thinking. Mike Novogratz told the crowd at the summit:

I had friends who had bought a lot of crypto and it had changed their lives – guys who weren’t making a lot of money but suddenly had a net worth of $5 million in crypto. I shook them and 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.

Novogratz has been quite vocal while dishing out criticisms of the crypto market. However, he vented his frustration while speaking at the Bloomberg Crypto Summit earlier this week on Tuesday. “It’s frustrating as hell because the whole industry looks like a bunch of idiots at times,” he said.

Related: Mike Novogratz sees a valid case for Ethereum to become the top crypto, overtaking Bitcoin

Mike Novogratz was a strong supporter of Terra, which collapsed earlier this year, wiping out $40 billion in investor wealth. However, he later admitted that he should have maintained more humility with the investment.

Mike Novogratz on Crypto Leverage and the SEC

Speaking at the Bloomberg Crypto Summit on Tuesday, July 19, Novogratz admitted that he was “absolutely wrong” about the extent of crypto influence in the market. During the summit, Novogratz said:

What I don’t think people expected was the scale of losses that would appear on the balance sheets of professional institutions and that caused the big chain of events. It became a full-fledged credit crisis with complete liquidation and major damage to confidence in the space.

Furthermore, Novogratz also accused the regulators of not doing enough to protect investors’ interests. Thus, he demanded more transparency in the crypto space. “I don’t know what the SEC should have done, or could have done, or could have done, but they didn’t do much to protect the retail investors,” he said.

Bullish on Bitcoin and Web 3

Although Novogratz remains wary of 200x gains on crypto, he remains bullish on Bitcoin. The Galaxy Digital founder believes that Bitcoin has every chance of reaching the $500,000 milestone within the next five years.

He added that institutional investors see this decline as an opportunity to buy. Novogratz also stated:

Although this is a bumpy road in use, it is certainly not a U-turn. We continue to see institutions in Europe, the Middle East and the US that have not been involved yet see this as an opportunity.

Moreover, Novogratz is also optimistic about the future growth of Web 3.0. He said: “Over the next decade, Web3 and blockchains will reshape industries, society and the internet as we know it, blurring the lines between our physical and digital realities.”