Mike Novogratz, an Advocate of Bitcoin, Thinks the FTX Collapse Presents an Opportunity for the Sector

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Last Updated on December 2, 2022 by Bitfinsider

Sam Bankman-Fried (SBF), the former CEO and creator of the unsuccessful cryptocurrency exchange FTX, has broken his silence and received criticism from well-known Bitcoin and crypto supporters. SBF has been sharing his perspective on the circumstances that led to the demise of his companies in interviews with major media organizations.

Many in the cryptocurrency business believe that the mainstream media, particularly well-known outlets like the New York Times and Forbes, have been trying to damage SBF’s reputation by producing “puff pieces.” The former CEO of FTX is allegedly “trying to twist the narrative” in his favor, according to these participants.

On the sidelines of the New York Times Dealbook Summit, SBF met with journalist Andrew Sorkin. The crypto community had a negative reaction to the interview. These consumers, many of whom were impacted by FTX’s demise, think the former CEO of FTX ought to be held accountable in court.

In line with this, the recent events have been explained away as a mistake made by someone who “got a little cocky,” which cost individuals billions of dollars. After his interview with SBF today, Mike Novogratz, a proponent of bitcoin and the head of the investment firm Fidelity, spoke with Sorkin.

Much of the sentiment in the crypto community was summed up by Novogratz. Novogratz thinks the emerging asset class has a chance to expand and become stronger as a result of the FTX collapse. The fund manager predicted that Bitcoin and other digital assets would have a significant impact on world financial markets in the long run.

In this regard, Novogratz divided the market into two sectors: the financial sector, which is backed by trading and investment companies. By being more open about their assets and obligations, these businesses will need to change in order to avoid another crash similar to the one that happened with the FTX.

The “on-chain” side of cryptocurrency, on the other hand, is supported by technology and subject to rules. According to Novogratz, more and more individuals will move to these developments. When FTX flopped, Fidelity suffered millions of dollars in losses, but the long trend held. “Crypto would be much much higher (in price terms) if it weren’t for Sam. I don’t think Bitcoin is going away. There are already 180 million people that already decided that it’s an important asset. You are not going to change their minds (…). You don’t see the institutions backing away, Fidelity is not saying “we made a mistake” they are doubling down at this point,” he added.

The “Delusional” Conduct Of SBF

Additionally, Novogratz referred to SBF’s claims as “delusional” and said the previous CEO of FTX was “delusional” regarding his role in the failure of the business. The bull on bitcoin thinks SBF let go of his ego and arrogance.

A letter from a cryptocurrency investor was read aloud by the journalist during Sorkin’s DealBook interview. The user enquired as to SBF’s whereabouts and the motivations behind “stealing his life savings.” SBF responded as per usual, saying he is “sorry about what happened”.

Novogratz contends that FTX and his associates should be “prosecuted” and “spend time in jail” as a result of their involvement in the FTX scandal. Many now ponder whether SBF will ever enter a courtroom for criminal proceedings, weeks after the company filed for bankruptcy.

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