Billionaire investor Mike Novogratz has blown GameStop’s valuation, warned against buying Dogecoin and accused the Fed of fueling speculation in a trio of interviews. Here are the 10 best quotes. | Currency News | Financial and business news
Reuters / Rick Wilking
- Mike Novogratz cited GameStop and Dogecoin as examples of investor exuberance.
- Galaxy Digital CEO argued that Bitcoin and Ethereum prices are much less frothy.
- Novogratz also criticized the Federal Reserve, suggesting that the price of NFTs has peaked.
- Check out Insider’s business page for more stories.
Billionaire investor Mike Novogratz questioned GameStop’s valuation, warned against buying Dogecoin, and accused the Federal Reserve of fueling market speculation in a recent trio of interviews.
Galaxy Digital’s CEO also said that Bitcoin and Ethereum look cheaper than other cryptocurrencies, predicted that Dogecoin will fall in price but won’t go away entirely, and suggested that the hype about non-fungible tokens (NFTs) is peaking has reached. He made the comments last week to CNBC, Yahoo Finance and Bloomberg.
Here are the 10 best quotes from Novogratz from the interviews, which have been slightly edited and condensed for clarity:
1. “There is crazy excitement about memecoins and meme ideas among very young investors. It’s shocking to me that GameStop continues to have value, let alone a market cap of $ 10 billion or $ 12 billion.
2. “The real frothy is not in Ethereum, not in Bitcoin, not in Coinbase, but in smaller altcoins. Dogecoin is a meme coin that has no real purpose, but has grown to $ 50 billion in market capitalization. There are many young people in the Reddit chat rooms who love Doge – both Elon Musk and Mark Cuban pump it up. I would be very concerned if a friend of mine invested in Dogecoin at these prices. “
3. “You have to be very careful with Dogecoin, it’s a dog.”
4. “All of this happens because the interest rates are zero.” Claiming that the speculative asset boom is a product of the Federal Reserve’s rate cuts, which have made borrowing cheap and saving less attractive.
5. “Retail is ahead in many ways. They are not giving up on GameStop, they are not giving up on Dogecoin right now. It’s dangerous to be short, but I wouldn’t be long either. “
6. “I don’t think Dogecoin will have any legs. It’s all retail and no one is behind it, no institutions coming in, no strategic buyers, no one working to make Dogecoin part of your portfolio. This is a retail phenomenon That is fueled by the fact that Fed Chairman Powell gives everyone money. There is too much money in the system and it drives up asset prices. You see these crazy little episodes from time to time. ”
7. “I think the price of Dogecoin is going to be a lot lower than it is because the energy is being lost. But I’m not sure it will drop to zero. There will be a die-hard Doge community supporting it somewhere . “
8. “These coins are owned by communities. They are almost like European football teams: they have their own songs, their own myth, their own vocabulary. If you are part of XRP, you are the XRP Army, or if you own Luna, you are a maniac. You’re dying more slowly than people predict. “
9. “There are some niches full of retail foam and speculation. There is a retail lawn, but you don’t really see that with Bitcoin and Ethereum. Money comes out of them and flows into other coins for more juice, more excitement.”
10. “We had some crazy prices in the NFT space. I don’t think anyone else is going to pay $ 69 million for a Beeple.”