• Billionaire Mike Novogratz said that 200x returns on crypto are abnormal wherein greed overtakes rational thinking.
• Novogratz admitted that he was “darn 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 on the state of the crypto market. Speaking at the Christie’s Art + Tech Summit in New York on Wednesday, June 20, Novogratz warned of the recent volatility in the crypto space.

He added that making 200x returns on crypto investments is simply ‘not normal’. While adding further caution, Novogratz said: “not everyone is made to be an investor”. He added that greed can get too often in the way of rational thinking. Addressing the audience at the Summit, Mike Novogratz said:

I had friends that had bought lots of crypto, and it had changed their lives — guys who didn’t make a whole lot of money but all of a sudden had a $5 million net worth in crypto. I shook them and I 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 enough while handing out criticism of the crypto market. However, he vented out his frustration while speaking at the Bloomberg Crypto Summit earlier this week on Tuesday. “It’s frustrating as heck because at times the whole industry looks like a bunch of idiots,” 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 investors’ wealth. However, later he admitted that he should have maintained more humility with his investment.

Mike Novogratz on Crypto Leverage and SEC

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

What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events. It turned into a full fledged credit crisis with complete liquidation and huge damage on confidence in the space.

Furthermore, Novogratz also blamed the regulators for 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 might have done, but they didn’t do a lot to protect the retail investors,” he said.

Bullish on Bitcoin and Web 3

Although Novogratz remains wary of 200x gains on crypto, he continues to remain bullish on Bitcoin. The Galaxy Digital founder believes that Bitcoin holds all possibilities of hitting the $500,000 milestone in the next five years.

He added that institutional investors are seeing this downturn as an opportunity to buy. Novogratz also stated:

While this is a bump in the road in adoption it’s certainly not a U-turn. We continue to see institutions in Europe, the Middle East and the US who haven’t gotten involved yet looking at this as an opportunity.

Besides, Novogratz also remains bullish on the future growth in Web 3.0. He said: “Over the next decade, Web3 and blockchains will reshape industries, communities, and the internet as we know it, blurring the lines between our physical and digital realities”.