According to Galaxy Digital CEO Mike Novogratz, the major players are waiting for a specific signal from the crypto markets before devoting resources to the new asset class.
In a recent interview with Raoul Pal on Real Vision, a crypto veteran said that institutions have pretty much done all of the necessary research on the market, but they may be waiting for regular traders to get in first.
“Crypto needs the retail players to come back to these communities to buy in, to believe, and to drive pricing, because that’s what’s going to get the institutions interested again.” Intellectually, institutions comprehend this business. They comprehend the differences between blockchains like Bitcoin and Ethereum. They’ve done their research, but they’re gun-shy. It will need effort. “The cost of energy is pricing.”
The Department of Justice (DOJ) announced an enforcement action last week against the little-known cryptocurrency exchange Bitzlato but did not divulge the exchange’s identity until the press conference. Novogratz says he was hoping the enforcement action had nothing to do with Binance because the performance of the largest crypto exchange is critical for retail traders and the crypto ecosystem in general.
“The DOJ said today that it was going to [launch an enforcement action]… “Please don’t have it be Binance,” I said. Listen, we need to support Binance. We do. They account for 60% of the liquidity, or 40%, or some huge amount of the liquidity. Changpeng Zhao (CZ) has always prioritized customer service. So he has a huge retail fan base that believes in our environment.
We really need those men. It irritates me that so many people on Twitter and other social media want to slam others and would rejoice if CZ walked on a banana peel and slipped on his ass. It’s an incorrect way of thinking. “CZ’s success is critical to ours.”