One of the most important investment fund managers, billionaire businessman Michael Novogratz , said the inquiry conducted by the US Department of Justice (DOJ) was “a good thing” for the crypto money market. The US Justice Department decided to open an investigation to find out whether some crypto money investors manipulate Bitcoin prices in pump groups .
Bad news for those in Pump groups
It’s bad news for some, but it’s really important why the US Department of Justice needs to conduct such an investigation. Mr. Novogratz, the founder of Galaxy Digital , made the following statements in an interview with Bloomberg :
Identifying malicious investors in the crypto money market is a very good thing for crypto money exchanges . In order to attract investment in many stock markets, the prices of crypto money are being played.
Over the past year, prices have been manipulated by pump and dump in various crypto currencies . A large number of pump and dump groups have been set up on social media platforms to do these kinds of ups and downs. The events in the Pump groups are very disturbing in the crypto money market. If regulations for such abuse are not implemented, then these will start to affect other stock markets in the future. The founders of the Gemini crypto money exchange and the first Bitcoin billionaires, Winklevoss brothers, are in Novogratz comment.
The crypto money exchanges also largely support Mike Novogratz’s comments on the US Department of Justice ‘s decision to investigate cryptographic currencies. Cameron Winklevoss said the regulations would be welcomed by the crypto money market if it would deter legitimate crypto money traders. Most of the crypto money companies want regulations that will give the market a legitimacy. Because in an area where there is chaos and fraud, big companies take risks and do not invest.
Crypto was welcomed in editing money world
In a similar vein, Tom Lee , founder of Fundstrat Global Advisors , sent an e-mail to Bloomberg stating that this regulation meant adult supervision and was welcomed. Previously, Tom Lee estimated that Bitcoin would reach $ 25,000 by the end of the year, even when the biggest crypto money had lost 25 percent . Tom Lee also explained that after the Consensus conference, Bitcoin’s price would increase. However, in the price of Bitcoin, no increase was observed until now.
At the time of writing, Bitcoin is trading above $7,500. According to CoinMarketCap, Bitcoin registered a 0.51% increase in the last 24 hours. Other cryptographic currencies like Ethereum, Ripple and Litecoin are also gaining value. The crypto money market needs regulations that will contribute to its growth. It is very important that the market has a framework that will renew itself with the development of Innovation , protect the investors from fraud and illegal activities. Institutional investors are slowly entering the crypto money market. If more friendly and investor-friendly regulations are made, good results will be obtained as soon as possible.