Mike Novogratz: What's Dogecoin for?

Ilustration photo @getty
Mike Novogratz Founder of Galaxy Digital, doubts the usefulness of Dogecoin (DOGE). He said, DOGE was just a speculative asset that was pushed up by Mark Cuban and Elon Musk.

This was conveyed by Novogratz on BloombergTV , last April 17, also related to the not ending case between the US Securities and Exchange Commission (SEC) and Ripple Labs.

"Dogecoin doesn't really have a purpose."

Michael Novogratz, Galaxy Digital Holdings CEO, comments on the digital token, which rallied more than 110% Friday, reaching a market value of more than $ 45 billion https://t.co/JpL24kQqdP pic.twitter.com/vigF2b156v

• Bloomberg TV (@BloombergTV) April 16, 2021

The volatility of Bitcoin (BTC) and Ether (ETH) is still very high at the moment. But, thanks to the big appreciation from big investors, the volatility will be even lower in the future, explained Novogratz.

The volatility is 4 times that of the market and 8 times that of the foreign exchange market.

“The most important problem right now is that very small crypto assets like Dogecoin (DOGE) have a market value of US $ 50 billion. It looked more like the GameStop stock hype . "Doge is basically useless, because it was driven by the support of Mark Cuban and Elon Musk," he said.

Novogratz does not deny that there is a strong community behind Dogecoin , but he is very worried if some of his friends are investing in crypto assets with the Japanese dog symbol, Shiba Inu.

“ Retail traders and investors have bought it too, similar to XRP, where Ripple Labs, the publishing company, is still on file with the SEC. The massive increase for me makes no sense, "he said.

Novogratz, who is a well-known defender of Bitcoin, said more and more traders were selling their BTC and ETH to buy Doge and XRP.

"They buy it to add bigger profits," he said.

Novogratz himself commented on the objection to the interview excerpt on Twitter. He said he was the first shareholder when Ripple Labs was founded.

Guys. I am not the SEC. I did not bring a lawsuit against Ripple. In fact I am a large shareholder of Ripple since day 1. the SEC has already said ETH is not a security. I understand why $ eth is on the move. I don't get the surge in $ XRP . What's so hard to understand?

• Mike Novogratz (novogratz) April 17, 2021

He also emphasized that the SEC has long said that ETH is not a security, unlike XRP at this time.

“I didn't mind XRP as a security and reported that to the SEC. The fact is, I was a shareholder in Ripple Labs since the first day it was founded, ”added Novogratz, whose company he leads has submitted a request for issuance of Bitcoin ETF products to the SEC some time ago.

Meanwhile, attorney John E. Deaton, who initiated the XRP community effort to interfere in Ripple's legal battle with the SEC, warned Novogratz that Ether (ETH) could be the SEC's next target, so it could equally be considered securities or investment contracts by companies. to the public.

The hot ball is actually in the hands of the SEC, after Gary Gensler is confirmed to lead the important commission in the US.

In 2018, for example, the former chairman of the CFCT argued that XRP and ETH could be classified as securities, so they had to be registered and supervised by the SEC. [ vins ]