Mike Novogratz invested in ParaFi Capital to develop DeFi space
Galaxy Digital founder Mike Novogratz claims get-rich-quick scams and schemes in the decentralized finance space are tarnishing cryptocurrency branch.
“Similar way many ICOs have brought the crypto into disrepute. There were many pyramid-like coins, – stated he is in a conversation with Bloomberg. – It his kind of gamification of money. Will lessons learned, but not very good for ecosystems “.
Novogratz noted that at the peak of popularity, the excitement around the ICO resembled fever, due to what many investors made stupid decisions. DeFi mania begins to subside along with declining rates the respective tokens, added is he.
At that the same time, Novogratz confident that full-fledged DeFi applications will lead to the fall of the intermediary business in the financial industries. By this reason Galaxy Digital decided become a minority investor company ParaFi Capital investing in DeFi space. ParaFi investors also include Bain Capital Venture and co-founder of multibillion-dollar private equity fund KKR & Co Henry Kravis.
ParaFi started investing in DeFi space in 2018 year. Her portfolio includes projects such as Compound, Aave and Uniswap. Andreessen Horowitz has delegated management rights to Compound.