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HomeCrypto NewsMarketMike Novogratz: Not Every Crypto Exchange is Run Like FTX

Mike Novogratz: Not Every Crypto Exchange is Run Like FTX

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The Galaxy Digital Chief’s recent comments are at variance with emerging concerns of centralized exchanges having the same fate as FTX in the future.


Michael Edward Novogratz, early crypto investor and chief of investment firm Galaxy Investment Partners, has weighed in on emerging concerns of other centralized exchanges collapsing like FTX in the long run, noting that he does not believe all other crypto entities are being run as inefficiently as FTX was. According to him, not every exchange is out to steal investors’ money.

While speaking in a CNBC Squawk Box interview today, Novogratz made these remarks as he addressed the FTX implosion, bitcoin’s recovery, and the effects of the debacle in the broader crypto space. When asked if crypto investors should trust that all other centralized exchanges are playing by the rules and not employing the same dishonest measures witnessed with FTX, Novogratz noted that it’s not good to believe that every exchange has a criminal mindset because one was recently exposed.

He further mentioned that his conviction does not mean that all other exchanges follow every regulatory rule within all their jurisdictions. Notwithstanding, he doesn’t believe the teams running all the other exchanges are out to steal investors’ funds.

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“It’s really dangerous to think that when you have one black swan, you’re going to see them everywhere – like, you’re going to have criminal organizations all over the place, these places run by sociopaths. It’s just not the case,” Novogratz responded.

 

 

Following the FTX collapse, investors’ confidence in centralized exchanges declined drastically, as CEXs witnessed mass outflows due to the FUD that spread shortly after. Binance, in particular, was recently put in the spotlight. Still, the exchange has proven more capable of handling mass withdrawals after experiencing almost $2B in outflows on Tuesday.

Last month, Novogratz’s Galaxy Digital revealed that it had up to $76.8M exposure to FTX. Novogratz has granted several interviews on the FTX collapse, partly due to his involvement in the crypto scene and investment in the recently-imploded FTX empire. Earlier this month, he called for Sam Bankman-Fried’s prosecution and expressed his hope for a bitcoin recovery. The comments came shortly after he called SBF’s actions regarding FTX “fraud.”

Novogratz Believes Bitcoin will Recover. 

In addition to his remarks on centralized exchanges, Novogratz also expressed his confidence in a bitcoin recovery amid the market-wide selloffs recently witnessed within the space. When asked if the firstborn crypto has staged recovery following a selloff of this magnitude, Novogratz replied in the affirmative.

“I started in 2013, so; we went from $200 to $1,000 and right back to $200 – up and down. […] trees don’t grow in the sky in a straight line,” he said. Recall that Novogratz, on December 1, made similar remarks regarding bitcoin on a CNBC Squawk Box episode, as he affirmed that he believes the asset will recover nonetheless.

Bitcoin (BTC) is trading below the $18K mark after recapturing it yesterday for the first time since the FTX collapse. Despite a 2.16% dip in the past 24 hours, the asset has gained by 4% in the past week, as it currently changes hands at $17,539 as of press time.

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Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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