As the crypto world recovers from the hot wallet hack of Binance, where 7,000 BTCs were stolen, a famous proponent of Bitcoin [BTC] has come forward and said that such thefts are bad for the entire crypto ecosystem. Michael Novogratz, Co-founder and CEO of Galaxy Investment Partners LLC and Bitcoin influencer, spoke to Bloomberg about the cryptospace and Bitcoin [BTC] at the SALT Conference in Las Vegas.
While talking about thefts, Novogratz said that the involvement of professionals and putting regulations in place have to lead the way to better projects. With world-class solutions like Fidelity, New York Digital Investment Group [NYDIG] and Anchor handling crypto-custody, Novogratz hoped that the same would instill confidence among institutions.
He said that in the case of Bitfinex, which was registering a 97% margin, he had informed its CEO to “decrease your margin and spend more of infrastructure.” He compared the safety features of Coinbase and their method of interaction with regulators and claimed,
“The future is going to be more regulated, safer and more Institutional places (sic).”
Novogratz appreciated Binance’s pro-active response to the hack, applauding the fact that no one lost any money as Binance had funds to pay off their investors. The influencer explained that since money can be lost from platforms, exchanges make sure to keep a small part of crypto in their hot wallet that would be accessible to hack, which can be backed by insurance. He noted that these acts of thefts are,
“It is not good for space. We need more transparency and more professionalism and it is coming. “
According to the influencer, all herders are entering the crypto market, while talking about Facebook. He also claimed that it would have a great impact on crypto if a large business like Facebook decided to enter crypto.