Galaxy Digital CEO Mike Novogratz is predicting that the decentralized finance (DeFi) sector of the crypto space will ultimately come out on top.
In a discussion at the SALT forum in New York, the billionaire says that DeFi is primed to win in the long term due to its robust fundamental features.
“I always say DeFi is going to win because it’s a better product. It’s composable. It’s transparent. It settles automatically. It’s just a better product, so [its] going to win in the long run. In the short term, there are a lot of people that don’t want it to win.”
The CEO also says that the sector still has the challenge of establishing proper regulatory standards that could prevent the type of sharp market downturn that happened this year.
“I remember standing in front of the Ethereum conference in 2016, talking to this group of young crypto builders and saying, ‘Guys, you’ve got to self-regulate or the regulators are going to come.’
And when you look at what happened over the last year, the industry did a horrific job self-regulating. Companies like Celsius ran monster leverage, taking consumer deposits, overnight deposits and lending them three, four, five years with an asset-liability mismatch that no rational guy would run.
And I don’t want to just pick on [Celsius]. There are 15 companies like that. If it wasn’t illegal, it was stupid…
The regulators were in the offices of many of these companies, and they either didn’t have the tools, didn’t have the drive, didn’t have the foresight and so I’m not giving the regulators a pass on this either.”
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