A former Goldman Sachs partner and CEO of Galaxy Digital Michael Novogratz in conversation with Financial Times reported that his company, founded as a cryptocurrency merchants Bank, faced a number of difficulties, which usually does not have similar organization in the field of traditional Finance. He also drew attention to the barriers to the development of the cryptocurrency business in the current environment, while continuing to believe in the prospects of the company and the cryptocurrency market in the long term.

Galaxy Digital was founded in 2017, with about $302 million investment from the Novogratz, and today manages $460 million in assets. The company recently opened a new trading division and expects to improve his situation with the listing in Frankfurt.

However, in the history of the Galaxy Digital has its downside. After the company raised $242 million in August through a listing on the Toronto Stock exchange, value of its shares fell by 37%. For the first quarter of Galaxy Digital reported a loss of $134 million, of which $85 million came from unrealized losses on cryptocurrency positions and $13.5 million for losses in the bidding process.

The second quarter for the company Novogratz was more successful – its net income was $35 million due to unrealized gains of $44.8 investment in the main areas. Also, she managed to reduce losses from trading, up $1.4 million

“2017 was funny, even bordering on stupidity. But this year has been challenging. The development of business in this bear market is a lousy idea. The level of anxiety of employees is only growing, and the prices continue to fall. In most areas of traditional business do not have to worry. For them, this threat does not exist,” said Novogratz.

Earlier this month, Galaxy Digital announced the personnel changes and the reorientation of its business with the ICO and the blockchain consulting for institutional clients.

Novogratz, in turn, continues to insist that qualitative changes in the cryptocurrency market will begin to occur with the advent of major financial institutions in the first quarter of next year. “Next year will boom, and then prices will start to move again,” he added.

Bullish predictions of the Novogratz find a variety of reactions among market participants. Some continue to doubt the ability of the Galaxy Digital to achieve success.

“When he says that the price will be some metamorphosis, he’s just trying to make predictions on what has no power,” said co-founder of FINTECH companies Post Oak Labs Tim Swanson.

Others admit that the predictions of the Novogratz can come true, and his company will play a great role in the development of cryptocurrency market

. “One of the biggest problems of the cryptocurrency market is the lack of reliable commercial Bank. The institution that is created by Novogratz, has a chance to benefit from first-mover advantage,” explained the founder of blockchain, the company wished to remain anonymous. Discuss current news and events on the Forum