- Dogecoin is just a hype coin, and once the initial enthusiasm fades out, there are neither developers nor institutions interested in it.
- Dogecoin investment is risky, but it’s a middle finger to traditional financial institutions by investors, he added.
Dogecoin has risen by over 24,000 percent in the last 365 days to trade at a current price of $0.60 according to CoinMarketCap. After hitting an all-time high of $0.65, the asset has recorded a market cap of $78 billion to become the fourth-largest cryptocurrency.
In a recent interview, Michael Novogratz, the CEO of Galaxy Digital has stated that it is dangerous to buy Dogecoin at the current price point, and dangerous to bet against it at this point of the rally. Though many investors are trooping into the market, Novogratz pointed out that they could lose a lot of money as Doge is trading at an extremely volatile price range.
A middle finger to traditional financial institutions
The sustainability of Dogecoin’s price surge is low as it does not have the same “sophistication” like Bitcoin, making it risky to go short.
“I think it’s dangerous because once that enthusiasm dies, if it dies, you could have a long way down. But I don’t want to discredit.
Novogratz further explained that Dogecoin is thriving on the enthusiasm of investors. For the young millennials and Gen Z, the asset is just a store of value. This follows a recent research report published by his financial service referring to Dogecoin as the most honest shitcoin.
“In a research report out yesterday and we called it the most honest sh*itcoin,” says @novogratz on #dogecoin. “It is literally just a stored value for this group of millennials and Gen Z–it’s a little bit of a middle finger to the system.” pic.twitter.com/oba8PuE047
— Squawk Box (@SquawkCNBC) May 5, 2021
Dogecoin is just the people’s coin, and once the enthusiasm fades out, there are neither developers nor institutional interest to save it, he believes. He also mentioned that Dogecoin has done something pure when the whole movement of the crypto evolution is put in perspective. Its recent rally and popularity exposes the existing financial system. “It’s a little bit of a middle finger to the system. People are unhappy with the current financial system. They just are, ” he added.
Galaxy Digital acquires BitGo
Novogratz’s firm Galaxy Digital in another report has agreed to purchase BitGo Inc, a crypto custodian in a cash and stock transaction worth $1.2 billion. To finance the acquisition, Galaxy Digital has issued 33.8 million shares in addition to $265 million in cash. Also, the BitGo shareholders will have a 10 percent stake in the company.
The deal will act as a catalyst to the long-standing objective of ensuring that the digital asset ecosystem and blockchain technology are institutionalized. BitGo has about $40 billion assets under custody, more than 400 institutional clients, and provides services to over 150 exchanges.
“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology, ” said Novogratz.