CEO of Galaxy Digital about the crypto market: In fact, it is dangerous to constantly expect a “black swan”, even if such an event has already happened
Michael Novogratz, CEO of Galaxy Digital investment company, appealed to the community not to wait for a “black swan” when investing in crypto projects. This is a concept that describes an event that can negatively affect the shares of a particular company or the entire market at once.
For the crypto industry, such events were probably the collapse of Terra and the bankruptcy of the FTX platform. But that doesn’t mean that all or most of the companies are fraudulent, Novogratz argues.
“It’s really dangerous to think if you have one black swan, you’re going to see them everywhere like you’re going to have criminal organizations all over the place and these places run by sociopaths. It’s just not the case,” the entrepreneur said.
He also emphasized the need to remain cautious and inquire about projects before investing in them. There are still no universal regulations in the crypto sphere, and regulators are penalizing many companies for violating AML and KYC requirements.
The head of BaFin, Mark Branson, believes that officials from different countries need to unite in the work on creating laws to regulate digital assets. The head of the German Federal Financial Supervision Authority is confident that a list of uniform regulations would help guarantee additional protection for crypto investors and prevent the illegal use of digital currencies.
“Now is the time for serious regulation of cryptocurrencies. But European laws alone are not enough for this. A universal solution is needed here, so the joint work of regulators of all countries is required, ”Branson said.
He also believes that otherwise, the inaction of the authorities will be a serious mistake, and the crypto industry may turn into a “playground for adults.”
Do you agree with this?
