Billionaire Mike Novogratz says these 5 cryptocurrencies that aim to replace JPMorgan and the NYSE could blow up in the next five years | Currency News | Financial and Business NewsFebruary 2, 2021
- Mike Novogratz said cryptocurrencies like Aave, Chainlink, and Compound could be good investments.
- “It’s much riskier, but if it works, it’s going to be a much bigger payoff,” the billionaire said in a livestream.
- Novogratz believes Dogecoin could be a good short-term play, but it would be worth nothing in the future.
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Five cryptocurrencies other than bitcoin and ethereum could blow up in the next few years, billionaire investor Mike Novogratz said in a livestream chat with Grammy-nominated artist Lil Yachty.
Novogratz, the CEO and founder of crypto-focused merchant bank Galaxy Digital, said bitcoin is probably a safer option on a risk-adjusted basis, but it has seen large price swings this year. According to him, ethereum is a good investment, as it has “a long way to go.”
But another group of digital assets based on DeFi, or decentralized finance, could take over in the coming few years – tokens like Aave, Chainlink, Compound, YFI or yearn.finance, and Uniswap.
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“There’s a chance that those five blow up the world, not in the next week, or the next month, but in the next five years,” Novogratz said. “Those are the tokens that want to take the banks and tear the banks limb from limb, that want to replace JPMorgan and the New York Stock Exchange and so I put some money into those things. It’s much riskier, but if it works, it’s going to be a much bigger payoff.”
Dogecoin, the meme-based cryptocurrency that started as a joke, spiked in January after Reddit traders touted the asset in an attempt to replicate the astonishing gains for GameStop and other heavily shorted stocks.
While Novogratz believes it could be a good short-term play, he said it would be worth nothing in the future.
“If you’re going to do it, you do it with a small amount of your money and you buy it and you sell it, and you buy it before it goes up and you sell it when it goes up because there’s no long-term value in Dogecoin,” he said. “In the long run, it’s going to be a zero, but it can be exciting to play.”
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