Mike Novogratz, the billionaire founder of crypto asset management firm Galaxy Digital, has told his followers that his 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/UST collapse, Novogratz penned an open letter on Wednesday, telling his followers that: “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 show of his support for the now-collapsed Terra ecosystem.

Terra’s UST stablecoin, which relied on an algorithm to maintain a peg to the US dollar, crashed last week, causing the price of its sister token LUNA to go from $60 per token to $0 in less than 72 hours. The crash wiped out roughly $40 billion dollars from the cryptocurrency ecosystem.

“The crash has affected confidence in crypto and DeFi,” Novogratz said in the letter, “whenever money is lost so abruptly, people want answers.”

He said that despite the “heartbreaking” market pandemonium of the past week, the crypto industry looks stronger than ever and is not going away any time soon.

“This does not mean that the cryptocurrency market will bottom out and go back up. It will take a restructuring, a cycle of redemption, consolidation and renewed confidence in cryptocurrencies.”

He explained that Galaxy Digital invested in LUNA in the fourth quarter of 2020 using balance sheet capital and clarified that the company’s treasury never used UST.

“Our team’s initial thesis 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 company expects to post a $300 million loss in comprehensive net income as of May 11, bringing partners’ equity to $2.2 billion, a 12% decrease from on March 31.

Pantera Capital, one of the original investors in Terraform Labs, revealed today that it had cashed out approximately 80% of its investment in LUNA well before the collapse of TerraUSD. According to Pantera partner Paul Veradittakit, the company managed to turn $1.7 million into approximately $170 million.

It’s not just Novogratz getting inked: Crypto-themed tattoos have grown substantially in popularity, and Google searches related to crypto tattoos increased 222% in 2021. According to data from Crypto Head, more than 900 people worldwide world have been inked with Bitcoin (BTC). ) “B” while Dogecoin (DOGE) and Ethereum (ETH) tattoos are on the rise.





This post Novogratz says LUNA’s tattoo is a constant reminder that investing ‘requires humility’

was published first on https://cointelegraph.com/news/novogratz-says-luna-tattoo-is-a-constant-reminder-investing-requires-humility

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