Mike Novogratz, founder of Galaxy Digital, said the Terra (LUNA) tattoo he got will serve as a reminder to remain humble in the venture capital field.
Wednesday was the day Novogratz published an open letter stating, “My tattoo will be a continual reminder that venture investing requires humility.”
On January 5, Novogratz initially shared a photo of his wolf-themed tattoo with the 461,000 people who follow him on Twitter.
— Mike Novogratz (@novogratz) January 5, 2022
Last week, Terra’s attempt to launch a stablecoin known as TerraUSD (UST) was unsuccessful, causing the price of its associated cryptocurrency, LUNA, to drop from $60 to $0.0 in just three days. The drop caused the loss of about $40 billion in cryptocurrencies.
Novogratz stated in his brief that when money is lost so suddenly, people look for answers.
According to Dutch regulators, cryptocurrencies are not yet ready to be used for payments or investments.
Despite last week’s “heartbreaking” market upheaval, the Bitcoin industry is stronger than ever and is not going away any time soon.
“This does not mean that the value of cryptocurrencies will suddenly increase. There is a need for consolidation, reorganization, redemption cycles and restoration of faith in cryptocurrencies.”
Galaxy Digital made an investment in LUNA during the fourth quarter of 2020 using money from its balance sheet; the company’s treasury never made use of UST.
Our group’s first idea for an investment in LUNA was to expand the application of blockchain payment systems.
As of May 11, Galaxy Digital anticipates a $300 million loss in comprehensive net income, which would bring the partners’ total equity to $2.2 billion, a 12 percent decline from March 31.
Prior to the TerraUSD failure, one of Terraform Labs‘ initial investors, Pantera Capital, liquidated eighty percent of its stake in LUNA. Pantera turned $1.7 million into $170 million, according to partner Paul Veradittakit.
We managed that position down over time as it became increasingly profitable/large, in order to maintain a diversified portfolio. We initially invested in LUNA because of the progress we saw in developer adoption, the payments usage, and the broader ecosystem being built on Terra
— Joey Krug (@joeykrug) May 18, 2022
To preserve the diversity of our portfolio, we reduced our initial investment as the business grew and became more successful. The acceptance of LUNA by developers, payments, and the Terra ecosystem contributed to our decision to invest in the cryptocurrency.
In 2021, the number of people searching on Google for bitcoin-themed tattoos increased by 222%. More than 900 people have tattooed the letter “B” for Bitcoin (BTC), and the number of people getting tattoos for Dogecoin (DOGE) and Ether (ETH) is growing.
