Mike Novogratz has shown a great deal of optimism about the latest wave of advancements in the fintech world. Having made billions through cryptocurrency, Novogratz continues to be a big believer in crypto, blockchain, and non-fungible tokens (NFTs), telling the crowd at the Token2049 crypto conference that “the adoption of using blockchain to transfer and store [intellectual property] is only going to go in one direction.”
Despite all that, something about the recent upswing in the NFT market has him urging investors to take money off the table.
Novogratz characterized the fever pitch for NFTs that has built over the last few weeks as “not normal in any way, shape, or form.” He continued, “Markets don’t go up forever.” The numbers bear out this assessment: after a summer slump earlier this year, the NFT market has climbed ever higher since the end of September, and events such as the sale of a Cryptopunk NFT avatar for $6.6 million have driven technophile investors into a frenzy.
Novogratz is hardly the only voice recommending caution when it comes to the new technology. Critics have long asserted that the unique digital signature of NFTs does little to secure possession of a claimed asset. For his part, Novogratz remains generally bullish on the technology, but maintains that the current NFT boom will not last forever.