Former hedge fund manager Mike Novogratz declined the promise to create "Goldman Sachs for crypto" and now focuses on the infamous Drexel Burnham Lambert bank. This investment bank in the 80s was a monopoly of the junk bond market and is also known for one of the biggest Wall Street scandals related to insider trading. This is reported by Bloomberg
Novogratz founded a commercial crypto bank, Galaxy Digital, which raised $ 250 million of private capital, and in April hired Richard Kim, vice president of Goldman Sachs. Galaxy Digital was planned to be launched in December 2017, but in the end, Novograz decided to postpone, considering the state of the market is not suitable for taking investor's money.
I was originally saying we were going to build the Goldman Sachs of this space. Now, and I know this is going to get me in trouble, but it’s actually more like Drexel. If you think about what Mike Milken and his guys did, they helped credentialize junk bonds, high yield as an asset class. They were the proselytizers, the traders, the bankers.
Founder, Galaxy Digital
Bank Drexel Burnham Lambert in 1990 became bankrupt because of the scandal associated with insider trading. Managing director of the bank Dennis Levine was involved, whose life the Fortune described as "the abyss of deception and betrayals." At its peak, Drexel was the fifth largest bank in the US, but as a result it was bankrupt after its employee Michael Milken was accused of insider trading. Back in 1989, the bank was in an unenviable financial situation, after the "bubble" in the rubbish bond market burst.
Perhaps Novogradets mentioned trash bons, because I wanted to compare them with the growth of ICO, with which more than $ 9 billion was raised this year. Although many of these projects are legitimate, the amount of money injected into them forces people to ask questions about the value of these projects, as well as whether their developers really do what they promise. Ethereum founder Vitalik Buterin called this situation the "bubble" of ICO last year.