Novogratz: These 5 Ethereum DeFi tokens could replace JPMorgan and the NYSE

11 July 2018; Michael Novogratz, CEO, Galaxy Digital, on the MoneyConf Stage during day two of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Seb Daly / RISE via Sportsfile
  • Mike Novogratz has revealed 5 Ethereum DeFi tokens that could replace JPMorgan and the New York Stock Exchange (NYSE).
  • According to Galaxy Digital, investors should invest 25% of their total net worth in Bitcoin.

Mike Novogratz, CEO of crypto investment firm Galaxy Digital, spoke in a recent live-stream interview with Grammy-nominated rapper Lil Yachty about the best investments younger people can make in current circumstances. As Novogratz explained, the “baby boomers have screwed up the world a bit” by starting the endless money printing.

This will not be able to go on forever, according to Novogratz, so governments around the world will eventually “run out of money.” Younger people, like Lil Yachty, should therefore consider “hard assets,” such as Bitcoin and gold, to protect their capital. In addition, the well-known Bitcoin bull recommended diversifying one’s portfolio, not only within the crypto market, but across the entire financial market.

Specifically, when asked what a young person with $1,000 or $10,000 should invest in, Novogratz said:

I would put 20-25% just in Bitcoin, buy Bitcoin and forget about it. I would put 5 or 10% in […] Ethereum, and then I put the rest in the stock market. And I know the stock market has gone up a lot, but I think it’s gonna continue to go up a lot. […]

So Bitcoin, it’s probably on a risk-adjusted basis the safer, but it’s moved a lot. Ethereum has moved a lot this year but I think Ether has a long way to go so that’s a good investment.

When it comes to finding undervalued cryptocurrencies with greater risk but also potentially multiple profit potential, Novogratz pointed to Ethereum’s DeFi sector. Projects within this space have the potential to revolutionize the financial industry, replacing JPMorgan and the New York Stock Exchange if successful. Accordingly, Novogratz has personally put a small portion of his fortune into 5 DeFi tokens:

And then there is this whole group called DeFi, or decentralized finance. So tokens like Aave (AAVE), or Chainlink (LINK), or Compound (COMP), (YFI), Uniswap (UNI) – those five – there’s a chance that those five blow up the world, not in the next week or the next month but in the next five years.

Those are the tokens that want to take the banks and tear the banks limb from limb, that want to replace JP Morgan and the New York Stock Exchange and so I put some money into those things. It’s much riskier, but if it works, it’s going to be a much bigger payoff.

As for the hype around Dogecoin (DOGE), Novogratz said it can be a good “short-term play.” However, he is betting that DOGE will be worth nothing in the future.

It’s kind of a joke, and it was a meme coin. And listen, memes work. You saw the meme about Bernie Sanders going everywhere, and DOGE was a meme coin that took off and people bought it as a joke, and now people trade it.

If you’re going to do it, you do it with a small amount of your money and you buy it and you sell it, and you buy it before it goes up and you sell it when it goes up because there’s no long-term value in Dogecoin. In the long run it’s going to be a zero but it can be exciting to play.

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