Mike Novogratzthe billionaire founder of crypto asset management firm Galaxy Digital, has told his followers that his Terra (LUNA) inspired tattoo will serve as a reminder to remain humble in the world of venture capital investing.
In the aftermath of the recent LUNA/TerraUSD collapse, Novogratz penned an open letter on Wednesday, telling his followers: “My tattoo will be a constant reminder that venture investing requires humility.”.
It was on January 5 that Novogratz first showed off his wolf-themed tattoo to his 461,000 Twitter followers.in an enthusiastic display of their support for Terra’s now-collapsed ecosystem.
— Mike Novogratz (@novogratz) January 5, 2022
Terra’s stablecoin TerraUSD (UST), which relied on an algorithm to maintain a peg to the US dollar, crashed last weeksending the price of its sister token LUNA from $60 per token to $0 in less than 72 hours. The crash wiped out roughly $40 billion from the cryptocurrency ecosystem..
“The collapse dented confidence in the cryptocurrency and DeFi industries,” Novogratz said in the letter.“Whenever money is lost in such an abrupt way, people want answers.”
Said Despite last week’s “heartbreaking” market pandemonium, the crypto industry looks stronger than ever and it’s not going away anytime soon.
“This does not mean that the cryptocurrency market will bottom out and go straight back up. It will take a restructuring, a redemption cycle, a consolidation and renewed confidence in the crypto space.”
He explained that Galaxy Digital invested in LUNA in the fourth quarter of 2020 using balance sheet capital and clarified that the firm’s treasury never used UST:
“The initial thesis of our team to invest in LUNA focused on the expansion of blockchain-native payment systems.”
According to an update from Galaxy Digital published on May 13, the firm expects to post a $300 million loss in comprehensive net income as of May 11, bringing partners’ equity to $2.2 billion, down 12% from March 31.
Pantera Capital, one of the original investors in Terraform Labs, revealed on Thursday that it had cashed out approximately 80% of its investment in LUNA well before the collapse of TerraUSD.. According to Paul Veradittakit, a partner at Pantera, the company managed to convert USD 1.7 million into approximately 170 million.
We managed that position down over time as it became increasingly profitable/large, in order to maintain a diversified portfolio. We initially invested in LUNA because of the progress we saw in developer adoption, the payments usage, and the broader ecosystem being built on Terra
— Joey Krug (@joeykrug) May 18, 2022
We managed that position lower over time, as it became increasingly profitable/larger, in order to maintain a diversified portfolio. We initially invested in LUNA because of the progress we saw in developer adoption, use of payments, and the broader ecosystem being built on Terra.
It’s not just Novogratz who’s gotten inked: Cryptocurrency-themed tattoos have grown substantially in popularity.and Google searches related to cryptocurrency tattoos increased 222% in 2021. According to data from Crypto Head, More than 900 people around the world have tattooed the “B” of Bitcoin (BTC), while Dogecoin (DOGE) and Ether (ETH) tattoos are on the rise.
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