As a reminder, today US regulators are indeed actively fighting cryptocurrency companies, putting sticks in their wheels in the most unexpected ways. The big news of the week in this context was the Commodity Futures Trading Commission’s (CFTC) lawsuit against the largest cryptocurrency exchange, Binance.

First of all, the trading platform is accused of providing access to cryptocurrency-based derivatives for US citizens, which can only be done after proper registration with the regulator.

At the same time, Binance representatives claim that their platform is blocking Americans based on several factors. Most notably, in August 2021, the exchange introduced mandatory identity verification for users, which requires them to show a passport. Accordingly, the platform’s staff disagrees with the regulator’s accusations.

What are the dangers of artificial intelligence?

Here is one of Mike’s quotes published by news outlet Cointelegraph.

It shocks me that we talk so much about regulating cryptocurrencies and say nothing about controlling artificial intelligence. I think the government has it all upside down.


Note that artificial intelligence capabilities have already been used in the cryptocurrency world. In particular, mid-month, the ChatGPT bot was asked to select digital assets to invest hundreds of dollars in. To do so, it was "fed" news over a long period of time, which was the source for making decisions. Read more about the selected coins in a separate article.

The Coinbase cryptocurrency exchange also decided to try out the smart contract analysis capabilities of the same bot. It turned out that it is not yet able to replace a human due to the complexity of this task, but in general the intelligence is suitable for some basic tasks like searching for malicious features.


One of the main dangers is the identity crisis due to dipfakes. Neural networks have become so advanced that they can already generate reasonably plausible photos, videos and audio recordings of anyone’s voice, from Hollywood celebrities to superpower presidents.

That said, cryptocurrencies and blockchain will have a special place in combating the negative manifestations of the adoption of artificial intelligence technologies. Novogratz continues.

In many ways, one of the best uses of crypto will be identity identification, because very soon you’ll get a fake Mike Novogratz – hopefully with hair. How would you prove identity in such a situation?

In this context, unique tokens deserve increased attention. NFTs have a myriad of uses, because they are not just “expensive pictures” based on blockchain. Unique tokens can become personal identifiers, something like a universal digital passport. And they could be used to authenticate content on the Internet.


Recall that NFTs were previously used to provide access to a new show called Stoner Cats. That is, users bought unique tokens and then used them to identify themselves on the streaming platform. Read more about this case study in a separate article.


As for the current state of the crypto market, the main drivers of its growth have been “seller attrition” and the easing of quarantine from the COVID-19 pandemic in China, says Michael. Here’s his quote.

Everyone who wanted to sell has already sold, right? There was so much bad news that if you had to sell, it was panic selling and just nervousness.

Note that in the context of 2023, the situation with cryptocurrencies does look positive. Still, last November, amid the bankruptcy of crypto exchange FTX, Bitcoin managed to drop to its local low in the $15,000 zone. Now, BTC jumped 22 percent in March and nearly 40 percent in January. Consequently, the crypto's fortunes have indeed improved.

In the context of China, the billionaire sees a notable positive change.

China has taken the regulators’ boot off the neck of its tech companies, and that includes cryptocurrency companies, so you’re seeing a lot of activity from Asia.

As a reminder, in Hong Kong, it will become legal for locals to interact with cryptocurrencies as early as the first of June 2023. We're talking about both buying digital assets and actively trading the coins.

Novogratz also predicts a new bull run for Bitcoin on a long-term scale. With the major cryptocurrency still setting a new local high by the end of 2023. Here’s Michael’s relevant rejoinder to that.

The market seems strong, and when I look at it from a technical perspective on the charts, you can see some serious weekly closes. And I find it strange to hear myself say that, given what my view of things was at the end of December. However, it wouldn’t surprise me if we end up significantly higher in three months, six months and nine months from now.


We think Michael Novogratz's position is indeed adequate. After all, cryptocurrencies, thanks to their decentralised environment, give their owners freedom in the first place. Of course, coin rates know how to rise as well as fall, but the same can now be said about stocks and even banks. In this context, the active phase of officials and regulators' fight against digital assets looks silly and unnecessary. One would like to believe that in the future this approach will become part of history and be successfully forgotten.