Hedge fund manager Mike Novogratz thinks that Elon Musk, the CEO of SpaceX, should release the company’s stock on a cryptocurrency network. In other words, he thinks the company’s shares should come only in crypto form. He also says he’d be the “first” to invest in the company if Musk ever made that decision.
Elon Musk and Crypto Don’t Always Go Together
Musk has had a very odd relationship with crypto, to say the least. For one thing, he “temporarily served” as the CEO of Dogecoin, a cryptocurrency that ultimately started as a joke and eventually rose to enjoy a market cap of more than $1 billion in USD. While this didn’t last long, it sure had traders and enthusiasts thinking the sky was the limit.
In addition, Musk was also the target of several Ethereum bot scams on Twitter, in which hackers ultimately created fake profiles using the CEO’s likeness to get people to voluntarily donate their ether funds to hacker-controlled accounts.
Musk’s SpaceX recently enjoyed the launch of 60 new satellites. The items are heavy – roughly 500 pounds each. This is so they can orbit Earth at a much lower altitude. This allows them to provide much cheaper internet service to the planet’s many residents, which was the company’s primary goal with the launch. In all, the company plans to launch more than 11,000 total satellites in the coming months. It’s an ambitious feat, to say the least, but one that has many potential benefits.
The company also garnered roughly $1 billion in additional monies through a new funding round. Whatever isn’t used towards the satellite project will go to the company’s next big venture known as Starship, which involves building a giant rocket designed to ship both humans and assorted cargo to the planet Mars.
Novogratz has been a proponent of tokenization for many years. The process involves an enterprise issuing stock stares on a blockchain network, meaning all shares would be digitized. He’s certain the process could ultimately “upend” Wall Street and put more financial control into the hands of average people rather than money-minded bankers.
Would This Really Work?
It’s unclear, however, if this process would work as well as he claims it would. For one thing, everyday persons do not have the education that Wall Street players have in managing funds, nor do they have the experience of company chief executives. It’s hard to say how the situation would go; companies would either thrive to the hilt, or all come crashing down in melodramatic fashion.
Either way, Novogratz believes Musk should start thinking about the tokenization of SpaceX. He’s confident it could give rise to an entirely new wave of investors, and with all the bullish activity surrounding crypto as of late, he could very well be right.