Mike Novogratz, the billionaire founder of crypto asset management firm Galaxy Digital, told his followers that his LUNA-inspired tattoo would remind them to stay humble in the world of venture capital investing.
Following the fallout from the recent LUNA/UST crisis, Novogratz penned an open letter on Wednesday, telling her followers that, “My tattoo will be a constant reminder that investing in venture capital requires humility.”
It was on Jan. 5 that Novogratz first showed off his wolf-themed tattoo to his 461,000 Twitter followers in an enthusiastic show of support for the now-collapsed Terra ecosystem.
—Mike Novogratz (@novogratz) January 5, 2022
Terra’s stablecoin UST, which relied on an algorithm to maintain a peg to the US dollar, collapsed last week, sending the price of its sister token LUNA from $60 per token to $0 in less than 72 time. The collapse wiped around $40 billion from the cryptocurrency ecosystem.
“The collapse has shaken confidence in crypto and DeFi,” Novogratz said in the letter, “whenever money is lost in such an abrupt fashion, people want answers.”
He said that despite last week’s “heartbreaking” market pandemonium, the crypto industry looks stronger than ever and isn’t going away anytime soon.
“It does not mean that the crypto market will melt and go straight up. It will take restructuring, a buyout cycle, consolidation, and renewed confidence in crypto.
He explained that Galaxy Digital invested in LUNA in the fourth quarter of 2020 using balance sheet capital and clarified that the company’s cash had never used UST.
“Our team’s initial thesis for investing in LUNA centered on expanding native blockchain payment systems.”
According to an update from Galaxy Digital released on May 13, the company expects to post a loss of $300 million in comprehensive net income as of May 11, bringing partner capital down to $2.2 billion. 12% compared to March 31.
Pantera Capital, an early investor in Terraform Labs, revealed today that it cashed in around 80% of its investment in LUNA long before the collapse of TerraUSD. According to Pantera partner Paul Veradittakit, the company managed to turn $1.7 million into around $170 million.
We managed this position lower over time as it became more profitable/important, in order to maintain a diversified portfolio. We originally invested in LUNA because of the progress we’ve seen in developer adoption, payment usage, and the broader ecosystem being built on Terra.
—Joey Krug (@joeykrug) May 18, 2022
It’s not just Novogratz getting inked — crypto-themed tattoos have grown dramatically in popularity with crypto tattoo-related Google searches increasing 222% in 2021. According to data from Crypto Head, Over 900 People Worldwide Got Inked With Bitcoin (BTC) “B” While Dogecoin (DOGE) and Ethereum (ETH) Tattoos Are Rising.