The collapse of the Terra ecosystem has sent shockwaves across the crypto market. Some of the biggest investors in Terra such as Delphi Digital and Galaxy Digital’s Mike Novogratz have finally broken their silence on the matter.
Earlier in February 2022, Delphi Digital participated in the last fundraiser by the Luna Foundation Guard (LFG). The investor has lost a massive $10 million of its total investment entirely. Delphi Digital has published a complete transparency report as to what it did with its LUNA reserves during the crash. Acknowledging its mistake of holding up to its investments, it wrote:
The fact is we miscalculated the risk of a “death spiral” event coming to fruition. We’ve taken some heat for this over the last week, and we deserve it. The criticism is fair and we accept it.
Mike Novogratz on Terra LUNA – ‘Big Idea That Failed’
On Wednesday, May 18, crypto billionaire Mike Novogratz finally broke his silence on the entire LUNA episode. Novogratz said that he was silent during the event of the crash while spending time reflecting on the economy and his role in the crypto space.
The Terra episode will be a big dent in investors’ confidence in the crypto and DeFi markets. His firm Galaxy Digital had invested in Terraform Labs during Q4 2020. Since then, he was promoting the UST stablecoin all across social media.
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In fact, Novogratz also got a Terra LUNA tattoo on his hand earlier this year. “My tattoo will be a constant reminder that venture investing requires humility,” he wrote.
I’m officially a Lunatic!!! Thanks @stablekwon And thank you my friends at Smith Street Tattoos. pic.twitter.com/2wfc00loDs
— Mike Novogratz (@novogratz) January 5, 2022
Novogratz also said that individual investors putting their money in crypto should have proper risk management in mind. Novogratz added that investors’ crypto allocation should only be 1% to 5% of their entire asset. He said:
“Reading the stories of retail investors who lost their savings in one investment is heart wrenching. But it’s important that less experienced market participants only risk what they are comfortable losing.”
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