Billionaire investor and Galaxy Digital CEO Mike Novogratz has finally broken his Twitter silence on the Terra LUNA/UST crypto collapse, also publishing an open letter.

Novogratz and his Galaxy firm were early, prominent and highly enthusiastic backers of the Terra blockchain and its ecosystem. So enthusiastic, in fact, that it prompted Novogratz to get a huge LUNA-themed tattoo etched on his left arm earlier this year and declare himself “officially a Lunatic”.

And on January 26, 2021, Novogratz told Bloomberg that the Terra blockchain is one of “the canaries in the coal mines of what else is going to happen”.

Amid the fallout from the recent LUNA/UST meltdown, though, the usually Twitter-active billionaire had been noticably absent from the social media platform. This invited speculation as to just how neck deep he and the crypto-centric Galaxy Digital are/were in the Terra assets.

But today, 10 days after his last post, Novogratz remerged on Twitter with the following…

“There is no good news in what happened in markets or to the Terra ecosystem,” wrote Novogratz in his blog post/letter.

“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,” he detailed. “The collapse dented confidence in crypto and [decentralized finance]. Whenever money is lost in such an abrupt fashion, people want answers. I am going to try to add some insights to the ongoing discussion.”

The billionaire investor then addressed Galaxy’s principal investments in LUNA, which began in Q4 2020 and said that he and his firm were “intrigued” by the Terra blockchain, and thought of it as “an example of crypto finding a real-world use case.”

Regarding how much he and Galaxy had invested in Terra, if he’s been following his own advice, then perhaps it was only a relatively small percentage of the firm’s assets…

“A core tenet in the crypto belief system is equal access to markets,” he wrote. “But it’s important that less experienced market participants only risk what they are comfortable losing. I’ve often said people should allocate 1%-5% of their assets to the space.”

Novogratz also said that despite last week’s “heart-wrenching” market pandemonium, he believes the crypto industry looks stronger than ever and wouldn’t be going away any time soon. And that’s despite the macro backdrop affecting all risk assets this year.

“This does not mean the crypto market will bottom and head straight back up,” added the tanked-crypto-tatt-sporting billionaire. “It will take restructuring, a redemption cycle, consolidation and renewed confidence in crypto.”

 

Novregretz? A constant reminder

So how’s the Galaxy Digital CEO feeling about the colourful LUNA-themed ink dominating the upper part of his left arm?

Judging by a specific comment he made regarding it in his open letter, we’re guessing pretty sheepish… despite it being a permanent pic of a howling wolf.

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

Meanwhile, crypto reply guys have been offering up a few ways for Novogratz to potentially “fix” his tatt…

 

 

 

 

 

 

 

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