Novogratz believes LUNA tattoo acts as a steady reminder investing “requires humility”
Mike Novogratz says the crypto sector will remain growing despite being severely humiliated by the latest Terra crash.
Mike Novogratz, the billionaire founder of crypto asset management firm Galaxy Digital, has informed his followers that his LUNA tattoo will act as a reminder to be modest in the venture capital sector.
After the LUNA/UST collapse, Novogratz wrote an open letter to his followers on Wednesday, saying, “My tattoo will be a constant reminder that venture investing requires humility.”
In a passionate gesture of his support for the now-crashed Terra ecosystem, Novogratz initially showed off his wolf-themed tattoo to his 461,000 Twitter followers on January 5, in a wolf-themed tattoo.
Last week, Terra’s UST stablecoin crashed, driving the price of its sister-token LUNA from $60 to $0 in less than 72 hours. The crash cost the crypto ecosystem almost $40 billion.
“The collapse dented confidence in crypto and DeFi,” said Novogratz in the letter, “whenever money is lost in such an abrupt fashion, people want answers.”
Despite last week’s “heart-wrenching” market chaos, he thinks the crypto sector is more powerful than ever and will not vanish anytime soon.
“This does not mean the crypto market will bottom and head straight back up. It will take restructuring, a redemption cycle, consolidation and renewed confidence in crypto.”
He emphasized that Galaxy Digital invested in LUNA with balance sheet capital in Q4 2020 and that the firm’s treasury had never used UST.
“Our team’s initial thesis for investing in LUNA was centered around the expansion of blockchain-native payments systems.”
According to a May 13 statement from Galaxy Digital, the firm expects to lose $300 million in net comprehensive income as of May 11, reducing the partners’ capital to $2.2 billion, down 12% from March 31.
Pantera Capital, one of Terraform Labs’ early investors, announced today that it had sold out around 80% of its LUNA investment before the TerraUSD crash. Pantera partner Paul Veradittakit asserts that the firm was able to convert $1.7 million into $170 million.
Crypto-themed tattoos have recently become popular significantly over the years, with crypto tattoo-related Google searches increasing by 222% in 2021. According to Crypto Head, more than 900 people have tattooed the Bitcoin (BTC) “B,” while Dogecoin (DOGE) and Ethereum (ETH) tattoos are also becoming more trendy.