The collapse of the Terra ecosystem has sent shockwaves across the crypto market. Some of the biggest investors in Terra, such as Delphi Digital and Mike Novogratz of Galaxy Digital, have finally broken their silence on the matter.

Earlier in February 2022, Delphi Digital participated in the latest Luna Foundation Guard (LFG) fundraiser. The investor has completely lost a massive $10 million of his total investment. Delphi Digital has released a full transparency report on what it did to its LUNA reserves during the crash. Recognizing its mistake to maintain its investments, it wrote:

It is a fact that we have misjudged the risk of a “death spiral” event. We’ve taken some heat for this this past week, and we deserve it. The criticism is justified and we accept it.

Mike Novogratz on Terra LUNA – ‘Big Idea That Failed’

On Wednesday, May 18, crypto billionaire Mike Novogratz finally broke his silence on the entire LUNA episode. Novogratz said he kept quiet during the crash as he spent time reflecting on the economy and its role in the crypto space.

The Terra episode will be a major dent in investor confidence in the crypto and DeFi markets. His company Galaxy Digital had invested in Terraform Labs in the fourth quarter of 2020. Since then, he has been promoting the UST stablecoin on social media.

Novogratz even got a Terra LUNA tattoo on his hand earlier this year. “My tattoo will be a constant reminder that risk investing requires humility,” he wrote.

Novogratz also said that individual investors investing their money in crypto should have good risk management in mind. Novogratz added that investors’ crypto allocation should only be 1% to 5% of their total assets. He said:

“It is heartbreaking to read the stories of private investors who lost their savings in one investment. But it is important that less experienced market participants only risk what they can easily lose.”

Bhushan is a fintech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.





This post Major Investors in Terra LUNA Finally Break Silence, Here’s What They Have to Say

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