In an interview with Raoul Pal on Real Vision, Mike Novogratz the CEO of digital asset-focused financial services firm Galaxy Digital, said: “When you criticize litecoin (LTC), you get hammered by people. It was a variation of bitcoin. A lot of people bought litecoin and say, well, I cannot afford a bitcoin, but I can afford a litecoin, which makes no economic sense but that was their argument. I think in pure store of value coins, I do not think a lot of the smaller ones will have long-lasting gigs. Now, then there are utility coins like, protocols, you think about ethereum (ETH), definitely, EOS, hashgraph, all of these coins that want to be the base layer of trust, where lots of things get processed.”
However, Novogratz reports that “90-95 percent of the real talent entering space as programmers are programming around the world of the Ethereum.” And he added, on the topic of Ethereum, “That is really where you are going to rebuild the future of finance and the future of lots of things.”
As stated, Ethereum has more developers than Bitcoin.
Novogratz, who had already warned banks about DeFi, thought that while “bitcoin on a risk-adjusted basis is a simpler story,” he was “liking Ethereum more and more as I see this thing going.”
According to cryptonews.com, Novogratz also stated that his emphasis on main investing parameters, such as market capitalization and fully diluted market capitalization, had been enhanced by recent crypto-bubbles.
He urged investors to concentrate on the second marker, which applies to what a token’s market cap would be if all available coins in total production were released, adding that this was the best investing lesson he learnt in 2020.
The CEO added that, as a rule of thumb, investors have “got to sell” when market cap prices get to “stupid levels” and “when the community values this new protocol at stupid levels, even in this wild bubble with all equities already,”
The Galaxy Interactive CEO said, “You’ve got to take some profits off the table.” Novogratz also warned crypto investors that paying attention to these indicators would turn some people into “momentum traders,” but would also let people “know the good projects,” so that they would “not buy on the big dips fundamentally.”“There are going to be big dips on new projects,” he concluded.