Mike Novogratz, the CEO of digital asset investment firm Galaxy Digital, expressed his shock and surprise at the amount of regulatory attention given to cryptocurrency compared to artificial intelligence (AI). At a fourth-quarter conference call on March 28, he said that he believes AI is what will trigger a ‘deep fake’ identity crisis in the future, and he believes the U.S. government has got it “completely upside-down” in focusing on crypto instead of AI regulation.
Novogratz voiced his fear that a deep fake identity crisis is looming because of AI and raised the question: “how do you prove identity in a world like that?” He suggested cryptocurrency could be one of the best use cases to handle identity issues in an AI-driven world.
Last week, the U.S. Commodity Futures Trading Commission held a discussion with its Technology Advisory Committee to explore the implications of Artificial Intelligence (AI). Despite this move by authorities, Andrew Yang believes that blockchain-based applications can play an integral role in tackling some issues posed by AI. “Crypto and blockchain will play a huge role in this,” Yang asserted. “It would be foolish to disregard this industry simply because of Sam Bankman-Fried and his Bermuda shorts.”
Crypto markets rebound on seller exhaustion, China’s regulatory aid
Novogratz commented on the state of the market, noting that “seller exhaustion” and the reopening of China have led to a remarkable recovery in the crypto industry since 2023. He attributed this improvement to panic selling stopping as investors no longer believed that cryptocurrencies could reach zero. “All the selling that needed to get done got done,” he said. “The news was bad and people were in sheer panic, but that seller exhaustion has helped the industry recover.”
Following the Chinese government’s strict enforcement of zero-COVID measures, Novogratz reported an increase in cryptocurrency activity from Asia. He also expressed confidence that the crypto market would continue its upward trend throughout the remainder of 2023: “The market looks strong and technical charts are showing big weekly closes. I’m pleasantly surprised by this; three, six, and nine months from now, I wouldn’t be shocked if the market was even higher.”
Galaxy’s quarterly results showed that the firm has returned to profitability with a net gain of $1 billion after suffering losses in 2022.
