Mike Novogratz, the billionaire Founder of the\u00a0crypto merchant bank Galaxy Digital, made some critical remarks on two of the moment\u2019s most popular cryptocurrencies: XRP and Dogecoin (DOGE).<\/p>\n
Novogratz told Bloomberg TV<\/em> on Friday that in spite of recent upward price movements in DOGE markets, he will not be jumping onto the Dogecoin bandwagon. Why? \u201c[Dogecoin] is a memecoin\u2026it doesn\u2019t really have a purpose,\u201d he said.<\/p>\n Looking Forward to Meeting You at iFX EXPO Dubai May 2021 – Making It Happen!<\/strong><\/p>\n \u201cIt\u2019s reminiscent of GameStop,\u201d Novogratz said, referring to the WallStreetBets (WSB) saga that upended capital markets earlier this year. At the time, WSB investors pumped millions into GameStop stock (NYSE:GME) and several other ‘meme stocks’ for the sole purpose of ‘squeezing’ hedge funds on Wall Street. \u201cI would be very, very worried if one of my friends was investing in Dogecoin at these prices,\u201d he said.<\/p>\n The price of Dogecoin has risen considerably throughout 2021. Part of its rise is directly associated with WSB traders: in February, a spinoff group of WSB investors targeted DOGE as their next asset to \u2018pump\u2019. The rise continued when Tesla Founder, Elon Musk began to promote the currency on Twitter.<\/p>\n As a result, DOGE\u2019s price is up more than 7300% since the beginning of the year ($0.004834 on January 1st to ~$0.36 at press time).<\/p>\n Additionally, Novogratz commented on XRP, which has seen a significant increase in its price since the beginning of the year: $0.23 on January 1st to $1.46 at press time, a rise of roughly 540%.<\/p>\n \u201cThere are some pockets retail froth and speculation [in altcoin markets],\u201d he said. \u201cXRP, which has a parent company that is under investigation by the SEC…went from $0.40 to $1.60 in a month. It doesn\u2019t make a lot of sense to me, either,\u201d he said.<\/p>\n \u201cThere is a retail frenzy \u2013 it\u2019s not really being seen in Bitcoin and Ethereum. Quite the opposite: money is coming out of Bitcoin and Ethereum and moving into these other coins for more juice, for more excitement.\u201d<\/p>\n However, several Twitter users clapped back at Novogratz in the comments under Bloomberg\u2019s post about the interview.<\/p>\n @Nietzbux, an anonymous cryptocurrency enthusiast, wrote, \u201cso @novogratz, the man who bailed out Ethereum Foundation and bought ETH to fund them, treating it exactly like a security offering, says XRP is under investigation and therefore is as overvalued as Doge? You sir, are not an objective party (sic).\u201d<\/p>\n Santiago Velez, Co-Founder & R&D Division Lead at Block Digital, had a different take on the conversation. \u201c*sigh*. Zoom out folks, there is product to be sold, at the correct valuations & in due course. Sell the inventory that’s going to expire (technologically) first then upsell the next great thing. 10 year play, patience (sic),\u201d he wrote.<\/p>\n — Santiago Velez (@Santiag78758327) April 17, 2021<\/p>\n<\/blockquote>\n In any case, each of these statements seems to point to a single basic truth, altcoin markets are growing at an unprecedented rate. The reasons for this, and the sustainability of the current cycle are yet unknown.<\/p>\n Speaking to Bloomberg Wealth, Scott Knapp, Chief Market Strategist at CUNA Mutual Group, compared the current altcoin frenzy to \u201cthe dot com days.\u201d<\/p>\n \u201cWe knew something big was going on, a lot of investors were chasing it hard. That led to a bubble,\u201d he said. \u201cFor every Amazon.com there were 10 pets.com that went bankrupt. Is Dogecoin the pets.com of the cryptocurrency era?\u201d<\/p>\n Michale O\u2019Rourke, Chief Market Strategist at JonesTrading, said that part of the altcoin mania could be due to the stimulus money that the US government pumped into the economy throughout 2020 and 2021. \u201cThe government has pumped so much monetary and fiscal stimulus into the economy now, even worthless assets are being bid up,\u201d he said.<\/p>\n\u201cThere Is a Retail Frenzy \u2013 It\u2019s Not Really Being Seen in Bitcoin and Ethereum.\u201d<\/h2>\n
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\u201dIs Dogecoin the pets.com of the Cryptocurrency Era?\u201d<\/h2>\n