Galaxy Digital, the cryptocurrency merchant bank created and owned by cryptocurrency investor Mike Novogratz, has acquired the now-former Goldman Sachs Executive Director Richard Kim as its new chief operating officer.
The acquisition represents yet another high-profile movement of a Wall Street executive into the cryptosphere. CNBC reported that Kim is part of a “handful” of former Goldman Sachs executives specifically who made the lead into the world of blockchain.
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In 2016, former Goldman managing director James Radecki left the bank to work in strategic investing and as an advisor for cryptocurrency investments. He later became the global head of business development at Cumberland Mining.
More talent moving into the Crypto World 🌎
Mike Novogratz hired Richard Kim from Goldman Sachs as the new COO of his crypto merchant bank Galaxy Digital
— Jason A. Williams (@JWilliamsFstmed) April 9, 2018
Earlier this year, cryptocurrency investment firm BlockTower Capital hired Michael Bucella, former Vice President of Multi-Asset and Global Equity Sales at Goldman. Matthew Goetz, who served as Vice President at Goldman for 11 years, formed BlockTower Capital in 2017.
Novogratz’ Rise in the Cryptosphere
Novogratz himself worked at Goldman in the late 1990s, and formed Galaxy Digital earlier this year after a long career in Wall Street. In January, Novogratz described Galaxy as a “best-in-class, full service, institutional quality merchant banking business.”
Prior to the announcement of Galaxy Digital, Novogratz developed plans to create a $500 million crypto hedge fund last year–a plan that was abruptly halted in late December. At the time, Novogratz said that “we didn’t like market conditions and we wanted to re-evaluate what we’re doing.” The decision to table the fund came in the massive Bitcoin crash that followed its journey up to $20,000.
Novogratz has been making headlines for the past several months for his Bitcoin predictions, some of which have come true. In November of 2017, he predicted that Bitcoin would reach $10,000 by year’s end; before he decided to cancel the launch of the crypto hedge fund, Novogratz told CNBC that he believed Bitcoin could “easily” reach $40,000 by the end of 2018.
With the price of Bitcoin tanking and then stabilizing around $7000 for the past several weeks, many feel that a rise to $40,000 by the end of this year is a rather lofty goal. Then again, Bitcoin was at just $1180 a year ago today; if it continues to rise at the same rate (a 600% increase), Bitcoin will be worth $42,000 next April. Maybe the future isn’t as bleak as it seems to be.