Galaxy CEO Mike Novogratz Preaches “Humility” and Expresses Confidence in Crypto’s Future Despite LUNA/TerraUSD Crash

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In his first public comments since the dramatic collapse of the dollar-pegged stablecoin TerraUSD (UST) and its companion token LUNA, former big backer, Galaxy Digital CEO Mike Novogratz uses the loss as a lesson costly and a reminder of the risk and volatility of crypto.

“There is no good news in what happened in the markets or in the Terra ecosystem. In Luna and UST alone, $40 billion in market value was destroyed in a very short time Investors big and small have seen profits and wealth vanish. The collapse has shaken confidence in crypto and DeFi,” Novogratz said in a statement. letter published on the Galaxy Digital website.

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

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

Investors have been licking their wounds since the price of UST fell below $0.10 last week and LUNA’s market cap fell from over $40 billion to virtually nothing. The collapse also reduced the total crypto market capitalization by around $350 billion and saw the price of bitcoin and ether temporarily fall below the psychologically important price levels of $30,000 and $2,000 respectively.

The timing of this collapse could have been better for Galaxy, which reported disappointing Q1 2022 numbers on May 9 that included a net loss of $111 million. By comparison, the company made a massive profit of $858 million in the same quarter a year ago. In response, its stock fell 40% to a recent low below $7.00. It has since rallied somewhat to climb above $8.00.

Of course, Galaxy isn’t the only one punished by public procurement. Industry leader Coinbase, which went public last year via an $86 billion direct listing on the Nasdaq. The company just reported its first quarterly loss as a public company, and its stock is now down more than 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 it’s important for investors to stay disciplined, take profits along the way, and maintain a diversified portfolio.