Mike Novogratz Believes FTX Collapse Is An Opportunity For The Industry?

Why Bitcoin Bull Mike Novogratz Believes FTX Collapse Is An Opportunity For The Industry

The former CEO and founder of failed crypto exchange FTX, Sam Bankman-Fried (SBF), ended his silent period and has been hit by prominent Bitcoin and crypto proponents. SBF has been talking with mainstream media outlets giving his take on the events that led to the collapse of his companies.

The mainstream media, including major names such as the New York Times and Forbes, have been accused of trying to wash SBF’s image by publishing “puff pieces,” according to many in the crypto industry. These players claim that the former FTX CEO is “trying to shift the narrative” in his favor.

if it emerges that he’s not just doing these interviews out of the goodness of his heart, but instead using journalists as dupes to promote a specific message – that they’re mostly unable to actually tackle in real time – they will share in the responsibility
— punished nic (@nic__carter) December 1, 2022

Bitcoin Bull On The Industry’s Growing Pains

As Bitcoinist reported, SBF spoke with journalist Andrew Sorkin at the New York Times Dealbook Summit. The interview saw a negative acceptance from the crypto community. These users, many affected by FTX’s collapse, believe the former FTX CEO should face legal consequences.

In step, the events of recent weeks have been portrayed as a mistake made by someone that “got a little cocky,” resulting in people losing billions. Bitcoin bull and CEO at investment firm Fidelity Mike Novogratz spoke with Sorkin today after his interview with SBF.

Novogratz summarized a lot of the sentiment in the crypto community. About the FTX collapse, Novogratz believes the nascent asset class has an opportunity to become stronger and grow. In the long run, Bitcoin and other digital assets will play a big role in the global financial markets, the fund manager claimed.

In that sense, Novogratz classified the industry into two sectors: the money side of the business, supported by trading and investment firms. These companies will need to adapt to prevent another FTX-like crash by becoming more transparent about their assets and liabilities.

On the other hand, there is the “on-chain” side of crypto driven by technology that requires regulations. More and more people will migrate to these projects, Novogratz believes. Fidelity lost millions when FTX failed, but the long trend remains intact. He added:

Crypto would be much much higher (in price terms) if it weren’t for Sam. I don’t think Bitcoin is going away. There are already 180 million people that already decided that it’s an important asset. You are not going to change their minds (…). You don’t see the institutions backing away, Fidelity is not saying “we made a mistake,” they are doubling down at this point.

BTC’s price moving sideways on the daily chart. Source: BTCUSDT Tradingview

SBF’s “Delusional” Behavior And His “Bad Month

Moreover, Novogratz called SBF’s statements “delusional” and believes the former FTX CEO is “delusional” about his responsibility in the company’s collapse. The Bitcoin bull believes SBF left his “ego” and “grandiosity.”

During the DealBook interview with Sorkin, the journalist read a letter from a crypto investor. The user asked SBF about the whereabouts of his money and the reasons for “stealing his life savings.” SBF gave the usual reply, as the clip below shows.

AUDIENCE LETTER: “Can you please ask SBF why he decided to steal my life savings?”
SBF: “Yeah— Um, I mean— I’m deeply sorry about what happened.”
pic.twitter.com/tTKCFNEw8n
— Benny Johnson (@bennyjohnson) November 30, 2022

Due to his involvement in the FTX debacle, Novogratz claims FTX should be “prosecuted” and “spend time in jail” along with his accomplices. At this point, and after weeks since the company filed for bankruptcy, many wonder if SBF will ever set foot in a criminal court.