Mike Novogratz, CEO of digital asset investment firm Galaxy Digital told investors he was surprised by the amount of regulatory attention to crypto instead of artificial intelligence (AI), a technology he believes will lead to a “deep fake” identity crisis.
The CEO explained in the fourth quarter conference call on March 28 that the US government has “completely turned upside down” when it chose to focus too much on crypto regulation and has not closed its eyes to AI:
“When I think about AI, I’m surprised that we’re talking about crypto regulation and there’s nothing about AI regulation. I mean, I think the government has turned it around.
This concern appears to stem from Novogratz’s fear that AI will lead to a “deep false” identity crisis.
“In many ways, one of the best use cases for crypto is identity around AI, because soon you’re going to get a fake Mike Novogratz, hopefully with hair. […] how do you prove your identity in a world like that?” said.
AI portrait of Van Novo pic.twitter.com/ESnenSDmdb
— Mike Novogratz (@novogratz) July 16, 2022
However, he believes blockchain-based applications will play a “big role” in solving some of the problems presented by AI:
“Crypto and blockchain will play a big role. It’s stupid to think that we have to save this industry because Sam Bankman-Fried is wearing Bermuda shorts.
That said, the US Commodity Futures Trading Commission recently talked about AI and its impact with its Technology Advisory committee last week.
Sellers are tired, China is easing
As for the current market situation, Novogratz said that “seller fatigue” and the reopening of China have helped the crypto industry recover strongly so far in 2023.
“All the sales that need to be done are done, right? There’s bad news, if you have to sell, sell panic and just be nervous “Oh God! This can be zero, “and people panic, you’ve exhausted the seller,” he said.
Following the Chinese government’s tough zero-COVID approach, Novogratz said he has noticed more crypto activity coming out of China.
“China is taking the regulatory boot off the neck of tech companies, and that includes crypto, [so] you see more activity from Asia.
related: Could Hong Kong be China’s proxy in crypto?
From a more technical lens, Novogratz believes that the crypto market will continue on an upward trajectory for the remainder of 2023:
“The market is feeling strong, and when I look technically on the chart, we’ve closed a big week. I’m surprised to hear that I’m saying this, because of my mindset at the end of December, but I wouldn’t be surprised if we were three months, six months, nine months higher from now on.
The strong rebound in the crypto market is also reflected in Galaxy’s balance sheet with the company now announcing quarterly results that finally turn a profit after a difficult loss of $1 billion in 2022.
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