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Michael Novogratz addresses his LUNA-inspired tattoo

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Crypto Bull Mike Novogratz Favors Gold over Bitcoin
Crypto Bull Mike Novogratz Favors Gold over Bitcoin

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The founder of Galaxy Digital, Michael Novogratz, was a firm believer in LUNA before its collapse. Novogratz said that his LUNA tattoo would remind him that investing requires humility.

The collapse of Terra LUNA caused extensive losses to investors in the ecosystem, and any recovery plan by the LUNA Foundation Guard is currently not working in favour of UST and LUNA. Do Kwon’s proposal to create a new chain and a new LUNA token is currently being supported by the majority of the community

Novogratz speaks about his LUNA tattoo

Novogratz first showed his wolf-like tattoo to his Twitter followers on January 5. The tattoo was in support of the Terra ecosystem, which has since collapsed following the depegging of the UST stablecoin. However, with Terra witnessing a collapse, Novogratz told his followers that the “tattoo will be a constant reminder that venture investing requires humility.”

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The Terra USD (UST) stablecoin was an algorithmic token that required LUNA to maintain its peg. The UST started depegging on May 8, which stressed the LUNA token dropped from around $60 to $0 in less than three days. The collapse of LUNA wiped around $40 billion from the Terra ecosystem.

Novogratz noted that the collapse of the Terra ecosystem had lowered confidence in crypto and decentralized finance (DeFi). “Whenever money is lost in such an abrupt fashion, people want answers,” Novogratz said. However, he added that the situation with LUNA had strengthened the cryptocurrency sector and showed that the market would withstand the test of time.

“This does not mean the crypto market will bottom and head straight back up. It will take the restructuring, a redemption cycle, consolidation and renewed confidence in crypto,” the billionaire added. Novogratz said that Galaxy Digital invested in LUNA during the fourth quarter of 2020 using its balance sheet capital but that its treasury did not use UST.

Galaxy Digital published an update on Monday saying that the company expected a $300 million loss in its net comprehensive income, bringing the partners’ total capital to $2.2 billion. This is a 12% drop from March 31.

Pantera Capital cashes out of LUNA investment

Pantera Capital said that it had cashed out around 80% of its LUNA investment before TerraUSD witnessed the collapse. Paul Veradittakit, a partner at Pantera, said that the firm had converted $1.7 million of its investment to around $170 million.

Novogratz is not the first crypto enthusiast to receive a tattoo of their favourite project. Such tattoos have increased in popularity, with Google search results noting a 222% increase in 2021. A Crypto Head report also says that over 900 people globally have Bitcoin tattoos with the “B” word, while Dogecoin and Ether tattoos have also become popular.

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