Mike Novogratz sees no point in the rise of XRP and sees Dogecoin (DOGE) serving no purpose. That’s how the billionaire founder of crypto investment firm Galaxy Digital put it to Bloomberg recently. And Novogratz is not alone in warning of a bubble in altcoins.
Mike Novogratz, the billionaire founder of the crypto investment firm Galaxy Digital, did not exactly endear himself to XRP and/or Dogecoin (DOGE) supporters in a recent conversation with Bloomberg TV. Novogratz sees the recent price increases of both assets critically and as a warning signal.
According to him, the rise in XRP “makes no sense” and “DOGE serves no purpose.” The billionaire, therefore, warns of FOMO (fear of missing out) in both assets and dangerous development in the altcoin markets as a whole.
XRP and Dogecoin (DOGE) have been the talk of the town recently. No wonder, since the prices of both assets are showing strong growth and accounts with a wide reach on Twitter are worth more than fundamental data anyway. In short, the hype around both assets is real, and only very few are looking for sustainability behind explosive price increases.
XRP, the cryptocurrency of the company Ripple, for example, has been rising ever since a court case with the US Securities and Exchange Commission (SEC) seems to be going well. The mere assumption is enough, even though nothing has fundamentally changed.
It is comparable to GameStop.
Mike Novogratz of Galaxy Digital sees no sense behind XRP’s rise. No substance, no sustainability. At least not currently. He compares the price development with that of GameStop, whose security was boosted in a coordinated way by a group called “WallStreetBets” (WSB). The result was a sharp sell-off.
Novogratz sees even less substance in Dogecoin (DOGE). Tesla CEO Elon Musk substantially influences the price development of the Memecoin. But DOGE does not serve a real purpose.
The DOGE price increased significantly in the current year 2021, even though even the developers say that DOGE serves no purpose whatsoever. Mike Novogratz comes to the same conclusion here when he says:
I would be very, very concerned if any of my friends were invested in Dogecoin.
However, we personally want to feel about Mike Novogratz’s statements. Both statements point in a certain direction. Both statements suggest that the Altcoin markets are moving too high too fast, and therefore a bubble is imminent, if not already happening.
Other experts also share this assumption by Novogratz. For example, Scott Knapp, chief strategist at CUNA Mutual Group, compares the hype in the altcoin markets to the dot-com bubble.
We all knew [then as now] that something big would happen, and all the investors are chasing the “big one.” That leads to a bubble. For every Amazon.com, there were 10 Pets.com that went bust back then. Is Dogecoin the Pets.com of the crypto era?
Michael O’Rourke, the chief strategist at JonesTrading, sees the simulus packages in the US and elsewhere on earth as not innocent in these developments around XRP, DOGE, and other altcoins. “Governments are pumping so much money into the economy that even worthless assets are being bought up.”
Bubble or not, the altcoin markets grew and are growing strongly in price terms in the current 2021. Maybe too fast, maybe too much. But what we should learn much more from this because we should look even more closely and research even more carefully before we risk our hard-earned money.
Otherwise, we risk ending up with possibly useless assets that are of no use and hardly any value at all. However, by then, the initiators or market promoters of these projects may have long since sold out and made their pockets full.
I share more intimate thoughts in a monthly newsletter that you can check out here. Please let me know in a comment, and let’s build your crypto universe via Patreon. Join me on various social media platforms: