Mike Novogratz to Create 'Drexel' Bank of Crypto

Drexel Burnham Lambert bank was a monopoly of the junk bond market in 80s
07 June 2018   733

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.

Mike Novogratz

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.

PwC to Represent Crypto Analysis Tool

Halo aims to provide warranty services to cryptocurrency transactions, in particular, the solution helps to create independent evidence for private-public key pairs
20 June 2019   78

One of the world's largest consulting firms, PricewaterhouseCoopers (PwC), announced the launch of an updated audit solution that supports cryptocurrency assets. This is stated in the press release of the company.

A tool called Halo aims to provide warranty services to cryptocurrency transactions. In particular, the solution helps to create independent evidence for private-public key pairs, which is one of the elements necessary for establishing cryptocurrency ownership rights.

In addition, Halo can collect information about transactions and balances on the blockchain.

As noted in the statement, the decision can be used by companies for which PwC is not an auditor. The initiative should help them try new opportunities and solve problems related to the blockchain and cryptocurrencies.

Currently, PwC can use the updated tool to provide warranty services to customers operating Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, LiteCoin, Ethereum, Ripple (XRP), as well as the ERC-20 OAX token.

PwC has been showing quite a strong interest in the cryptocurrency industry for several years now. So, in 2017, the company began accepting payments in Bitcoins, and last year began to develop new standards for the ecosystem of digital assets and stablecoats.