Galaxy Digital CEO Mike Novogratz, one of the strongest proponents of the failing LUNA token, which left a wreckage behind it, finally made a statement regarding the collapse of the token in a recent shareholder letter.
Fiery LUNA defender mocked!
With the collapse of LUNA last week, it was a matter of curiosity what Mike Novogratz, who was a good defender, had to say. However, the famous billionaire must have entered the “fast of silence”, so he chose to remain silent on Twitter in an eerie way. Mike Novogratz claims he was busy thinking about the economy and the cryptocurrency industry.
As you have been following closely on cryptokoin.com news, the algorithmic UST stablecoin, which lost its stablecoin earlier this month, was a complete disappointment for the market. However, Mike Novogratz describes the UST as ‘a great idea that failed’.
Novogratz says Galaxy invested in Terra (LUNA) in the fourth quarter of 2020. In January, he proudly displayed his tattoo dedicated to the high-flying cryptocurrency. After the token’s explosion, Novogratz was widely ridiculed for its exaggerated promotion of the cryptocurrency project. “My tattoo will be a constant reminder that venture investing requires humility,” the billionaire said.
The price of the management token peaked at $118 before moving to an overall decline in the crypto market due to unfavorable macro conditions. The famous billionaire says that the downward pressure on Bitcoin, the reserve asset of the Luna Foundation Guard, and UST withdrawals triggered a black swan event. LFG did not have enough reserves to prevent disaster.
According to Novogratz, the collapse was due to unfavorable global market conditions!
While much has been written and spoken on the subject, many are confused by the rapid collapse of one of the biggest blockchain projects that was seemingly too big to fail. Novogratz attributes the token’s collapse to unfavorable global market conditions.
The famous billionaire advises investors to build a diversified portfolio of crypto assets, just like Galaxy does. Despite Terra’s shocking collapse, Novogratz believes that crypto will not go away, but he also warns investors that the market will not bounce back directly.
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