Mike Novogratz Is Regretting His Terra USD Tattoo

Mike Novogratz Is Wishing He Could Turn Back Time

Mike Novogratz Is Regretting His Terra USD Tattoo

Mike Novogratz – CEO of Galaxy Digital and a billionaire bitcoin investor – was so confident in Terra USD, the stable currency that lost its peg and crashed a couple of weeks ago, that he got the symbol for the asset tattooed on his arm. This is an action he claims to be regretting at the time of writing.
Mike Novogratz Is Wishing He Could Turn Back Time
Terra USD was an algorithmic stable coin. This means that it wasn’t backed up by any sort of physical collateral. Rather, the currency was only backed by a smart contract and the respective belief in the code. This belief ultimately wasn’t strong enough to keep the currency active and stable, as during the crypto bloodbath traders witnessed in mid-May, the asset lost its stable peg and fell practically to zero in just a few days. The currency is now considered virtually worthless and is one of the biggest digital currency fiascos to ever strike the industry.
Mike Novogratz was one of the currency’s biggest fans. In the past, he had stated that within five years, he envisioned the currency striking a $500,000 price, though this would have been somewhat strange given that the currency was a stable coin. With such a status, the asset should only have stayed at $1 throughout its tenure.
Nevertheless, Novogratz had high hopes for the coin, and even added the currency to his company’s balance sheet roughly two years ago. He was confident in the asset and invested in it given the high promise it was reportedly showing thanks to the Chai app, which was built on Terra in South Korea. In addition, the coin’s executives unveiled plans to make the currency’s ecosystem a full payment network.
In an interview, Novogratz stated:
Among other things, we analyze developer engagement, investor support, and network activity. Terra, the underlying blockchain, had hundreds of projects being built on it and a world class list of investors. The initial idea was gaining serious traction.
The currency was tattooed onto his arm as a reminder that he was one of the first to promote the currency when it was still in its early stages. However, he continued in his interview that the tattoo is now just a reminder of his newfound humility and the subsequent crash that followed Terra’s de-pegging.
A Full Crash for the Space
He says:
The downward pressure on reserve assets coupled with UST withdrawals triggered a stress scenario akin to a ‘run on the bank.’ The reserves weren’t enough to prevent UST’s collapse.
The dip behind Terra has caused several coins to fall in recent weeks, the most notable being bitcoin, easily the space’s largest and most popular asset by market cap. The currency – which was trading for about $68,000 per unit just seven months ago – has since dropped by about $40K.

Tags: bitcoin, Mike Novogratz, Terra USD

Leave a Reply

Your email address will not be published.

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
AdonFinance
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance