Crypto billionaire Mike Novogratz says sky-high NFT prices are not normal and investors should be taking money off the table

Mike Novogratz
  • Mike Novogratz has said NFT prices are not normal “in any way shape or form.”
  • He said investors should be thinking about taking some money off the table.
  • Novogratz said he believes in NFT technology but said “markets don’t go straight up forever.”
  • See more stories on Insider’s business page.

Crypto billionaire Mike Novogratz has said the soaring prices of non-fungible tokens (NFTs) are “not normal” and that it’s a good time to be taking some money off the table.

Novogratz said he was bullish about the prospects for NFTs – collectible items secured using crypto technology – but startled about the recent run-up in prices. “Markets don’t go straight up forever,” he said.

The NFT market has boomed in recent months after a lull in the summer. Data from shows sales in the secondary market hit an all-time high at the end of September and have stayed elevated.

Cryptopunks, a type of collectible NFT avatar, have changed hands daily in recent weeks for around $US400,000 ($AU550,066) but one sold for $US6.6 ($AU9) million in September.

Novogratz, speaking virtually at London’s Token2049 crypto conference, said: “That’s not normal, in any way, shape of form.”

He added that it “seems to me like a pretty good time to at least book some profits, and fold it back into bitcoin or ethereum or another token.”

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But he said the buyers in the market are heavily committed. “I was actually with a friend who bought a punk the other day, trying to convince him to take a few chips off the table. He told me I was crazy,” he said.

Novogratz is one of the most influential people in the crypto world, having left the hedge fund industry to found one of the biggest digital-asset investment firms, Galaxy Digital.

An NFT is a unique digital asset that represents ownership of real-world items like art, video clips, music, and more. Some argue that they’re worthless, seeing as anyone could simply download the image or video.

But Novogratz said he believed NFTs and the technology they use would be a big part of the future of tech. “The adoption of using blockchain to transfer and store [intellectual property] is only going to go in one direction,” he said.