Novogratz invests $15 million in crypto exchange startup
Mike Novogratz, the crypto enthusiast who launched Galaxy Digital Capital Management, is taking on a new enterprise. Through Galaxy, he has put $15 million into a company that has designed a system to assist other businesses in the creation of cryptocurrency exchanges and trading platforms. That company, AlphaPoint, has already been tapped by the CME Group and The Royal Mint in the UK to design a trading platform. The investment will allow Greg Wasserman, Galaxy's managing director, to maintain a seat on the company's board.
Novogratz said of the investment, "We are in the early stages of a fundamental transformation in financial markets due to the digitization of assets. […] We are excited to partner with AlphaPoint as we continue to help drive this revolutionary change in digital markets."
Despite the slide in cryptocurrency markets seen over the past several months, Novogratz is still optimistic about the future of digital currency. At the Bloomberg Invest conference held almost two weeks ago, he said, "Right now, the coins are kind of going sideways. But underneath, the people moving into the industry, it’s a straight line up. Job applications – straight line up. Private investing – straight line up."
Last month, cryptocurrencies lost over $110 billion in value. All of the top coins have suffered; however, many anticipate a rebound to happen soon. Evidence supporting that assumption comes through the examples given by Novogratz, as well as the slowly growing interest in institutional investments. Many have pointed out that there have been a number of fundamental building blocks put in place to provide for a stable cryptocurrency future.