Mike Novogratz did not hold back, not even a bit when he spoke about Cardano this past weekend, saying he was shocked about its valuation. The Chief Executive Officer of Galaxy Digital even went as far as saying its community is a “weird cult.”
“And so things like Cardano, it shocks me, the valuation. And it shocks every smart developer I know. They have done something to create this weird cult,” the CEO said.
Cardano, a high-speed blockchain, registered one of the highest “commits” on GitHub last week, although some major players remain unimpressed. The fifth largest cryptocurrency by market capitalization having an overall value of just under $50 billion is within striking distance of Binance Coin.
Disagreeing with the Galaxy Digital big boss
In remarking about the project, Novogratz wondered how can a half-complete network with no operational smart contracts be valued so highly.
Although there are some valid points for his argument, the executive’s “weird cult” remarks earned the ire of Cardano supporters who immediately came into the defense of the fast-growing blockchain project.
“Let me translate the billionaire speak for you guys. He’s saying that he doesn’t see a backdoor to get in at a favorable price or manipulate the market like the rest of the VC coins,” said Input Output Global CEO Charles Hoskinson in getting involved in the controversy by accusing the Digital Galaxy leader of being bitter.
Novogratz drops bombshell
Speaking to Yahoo Finance anchor Zack Guzman, Novogratz, obviously referring to Cardano, said the value is no longer derived from code.
Instead, the CEO said it is now a social construct and is all about branding, implying that the cryptocurrency is all show and no go.
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