Well-known bitcoin enthusiast and Galaxy Digital CEO Mike Novogratz compared the DeFI industry to the ICO boom and spoke about investing in DeFi projects.
“Just as many fraudulent ICOS have given cryptocurrencies a bad reputation, there are many pyramids in DeFi. They give investments the spirit of gambling. Of course, lessons will Be learned from this, but the fact itself is not useful for the ecosystem,” novogratz believes.
The bitcoin enthusiast noted that the frenzy around DeFi has decreased slightly recently, which has led to a drop in the price of tokens. This is good for the industry, because in the coming years, decentralized applications may displace many intermediary companies. And the industry itself, although plagued by fraud, was not created for the purpose of deception.
Novogratz stressed that the DeFi industry will continue to develop, so Galaxy Digital bought a small part of the shares of ParaFi Capital. It invests in promising DeFi projects.
“I think about 5% of our capital is invested in DeFi, this is not too much. But we want to invest in the latest technologies. I think DeFi will become a really important part of the cryptocurrency ecosystem,” said the CEO of Galaxy Digital.
The investment company formed an internal team to work with the decentralized Finance sector about three months ago and has already invested in several projects, including 1inch.exchange.
In June, Novogratz predicted that the rate of the first cryptocurrency will soon reach $20,000. Bitcoin has actually risen since then, but failed to overcome the $12,500 resistance.