Novogratz's Crypto Trading Desk Lost $136M in Nine Months
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Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#2FYI - article is from November. He's still bullish...
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#3I mean, given how hard cryptocurrencies crashed this year is it really a surprise? The only way for him to make money would probably have been to short everything continuously but seeing how irrational and easily manipulated the cryptocurrency market has been in the past that seems rather foolish.
Given his pedigree you'd think he'd know better than to bet on something that's 99% pure unbridled speculation and 1% actual technology. It's like knowingly investing in a Ponzi scheme, what did you expect?
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#4More proof from HN that cryto is bad.
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#5It amazes me that funds hold long positions in a market without safeguards and regulations and that really has yet to formalize. I'm bullish on digital currencies but there's going to be a ton of turmoil while the world figures out how to deal with this new asset class and major shake ups as regulations start to formalize or continue to formalize in some cases.
Long plays in this market are massively risky bets. They seem completely unnecessary as well. With the volatility that exists and the decent level of volume, there's tons of easy money to be made.
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#6More proof from HN that cryto is bad.
It has its uses. It's just not free real estate.
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#7FYI - article is from November. He's still bullish...
His stock, however, has only fallen an additional 10% or so since then
(It’s hard to see exactly on the charts, because the stock price has fallen so fast +/- 10% is now a matter of just two or three pixels)
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#8More proof from HN that cryto is bad.
It has its uses. It's just not free real estate.
> https://morningchores.com/free-land/
Even free real-estate has its drawbacks.
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#9I mean, given how hard cryptocurrencies crashed this year is it really a surprise? The only way for him to make money would probably have been to short everything continuously but seeing how irrational and easily manipulated the cryptocurrency market has been in the past that seems rather foolish. Given his pedigree you'd think he'd know better than to bet on something that's 99% pure unbridled speculation and 1% act…
One of the best kept secrets in the hedge fund/financial industry is that most people really dont have a clue what they are doing. Sure they make bold predictions, appear on CNBC and use industry jargon. But at the end of the day, they arent much better than you or me at managing large amounts of money.
Re: Novogratz's Crypto Trading Desk Lost $136M in Nine Months
#10From what I read when the firm launched, I thought this operation would behave like a traditional market making desk, profiting from spreads and hedging aggressively. If anything volatility would help P&L, but I guess there just isn’t enough volume or liquid crypto derivatives to hedge effectively.