Galaxy CEO Mike Novogratz Preaches ‘Humility’ Expresses Confidence In Crypto’s Future Despite LUNA/TerraUSD Crash


In his first public comments since the dramatic collapse of dollar-pegged stablecoin TerraUSD (UST) and its companion token LUNA, previous major backer Galaxy Digital CEO Mike Novogratz is using the loss as an expensive lesson and reminder of crypto’s riskiness and volatility.

“There is no good news in what happened in markets or to the Terra ecosystem. In Luna and UST alone, $40bn of market value was destroyed in a very short amount of time. Both large and small investors saw profits and wealth vanish. The collapse dented confidence in crypto and DeFi,” said Novogratz in a letter posted on the Galaxy Digital website.

To that end, he has resolved to keep the LUNA tattoo, which he famously had added to his left arm in TK as a reminder.

“My tattoo will be a constant reminder that venture investing requires humility”.

Investors have been licking their wounds since the price of UST fell to below $.10 last week and LUNA’s market capitalization dropped from over $40 billion to essentially nothing. The collapse also shaved approximately $350 billion from the total crypto market capitalization and saw the price of bitcoin and ether temporarily fall under the psychologically important $30,000 and $2,000 price levels respectively.

The timing of this collapse could have been better for Galaxy, which reported underwhelming numbers for Q12022 on May 9th, which included a net-loss of $111 million. By comparison the company produced a massive profit of $858 million in the same quarter a year ago. In response, its stock fell by 40% to a recent low below $7.00. It has since recovered somewhat to climb over $8.00.

Of course, Galaxy is not alone in getting punished by public markets. Industry leader Coinbase, which went public last year via an $86 billion direct listing on Nasdaq. The company just reported its first quarterly loss as a public company, and its stock is now down over 75% from its all time high.

Looking ahead, investors are now preparing to enter a new bear market. Novogratz noted that the era of cheap money is over and that it is important for investors to remain disciplined, take profits along the way, and keep a diversified portfolio.


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