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Galaxy Digital to Invest “Hundreds of Millions” of Dollars into Crypto Startups

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Galaxy Digital to Invest Hundreds of Millions of Dollars into Crypto Startups

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Galaxy Digital, which was founded by billionaire crypto enthusiast Mike Novogratz in early 2018, has hundreds of millions of US dollars available for investment in crypto startups, according to Business Insider.

Galaxy Digital has already made numerous cryptocurrency investments that haven’t been disclosed to the public yet. This is not surprising since Mike Novogratz has said the cryptocurrency market cap will hit USD 20 trillion, so any money invested into cryptocurrency now will increase on the order of 10,000% and cryptocurrency-based companies will reap massive profits if he is accurate.

So far, the only investment that Galaxy Digital has announced to the public was a USD 15 million funding round it led for AlphaPoint, which is a platform that helps companies launch new cryptocurrencies. Other investments are being kept secret for now, and include investments in high-volume initial coin offerings (ICOs) and blockchain-based platforms.

USD 325 million has been set aside specifically for investment in platforms that will operate off the EOS blockchain. Galaxy Digital has millions for investments in other projects, with a focus on companies that will be easing the way for institutional investment in the cryptocurrency market like custodians and properly regulated trading platforms.

Hedge fund manager Kyle Samani said the last barrier holding back institutional investment into cryptocurrency is proper custodianship, and if this is right, Galaxy Digital’s strategy of investing in cryptocurrency custodians is an excellent approach for two reasons. Investing into custodian infrastructure will expedite the flow of institutional money into the cryptocurrency world increasing the value of Galaxy Digital’s cryptocurrency investments, and the company will be in an optimal position to benefit from the large flow of institutional money. According to Ethereum co-founder Charles Hoskinson tens of trillions of dollars will be injected into the crypto market by institutional investors.

Galaxy Digital itself represents one of the first institutional investors in the cryptocurrency world, and if it is profitable in its ventures, it has the potential to attract even more money.

 

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