Indeed, Novogratz believes that one crypto platform’s collapse doesn’t mean that the entire sector is filled with ‘black swans’ and criminals, as he told CNBC’s Squawk Box host Joe Kernen in an interview published on December 15. Specifically, he commented on the recent sell-off, stating that Bitcoin (BTC) remains a volatile asset but also that, despite the FTX crashing:
‘Black swan’ events
With ‘black swan,’ Novogratz was referring to the common financial vernacular used to describe an anomalous and unexpected event with disproportionate consequences on future developments, often rationalized as predictable in hindsight after the event had already transpired. The term was further popularized thanks to the investment book authored by a known crypto critic Nassim Nicolas Taleb, called “The Black Swan: The Impact of the Highly Improbable,” in which Taleb discusses epistemology, probability, risk, and psychological biases involved in investing. That said, Novogratz further clarified that this also doesn’t mean that “every other exchange is playing by every single rule. A lot of exchanges are under some assault by the regulators for KYC/AML violations.” However, as he concluded: Meanwhile, the CEO of stablecoin issuer Circle, Jeremy Allaire, has asserted that, when looking for a safe place to hold their cryptocurrencies, “people want to see regulated firms that have major global accounting firms providing public company levels of audit,” in an interview with CNBC’s Andrew Ross Sorkin published on December 14. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
