Michael Novogratz first appeared on air after LUNA’s fall

A statement on behalf of Novogratz appeared on the company’s official website. He addresses all clients, shareholders, and the crypto community in it. The message was quite naturally dedicated to what had happened with TERRA/LUNA/UST.

Novogratz is taking these events hard. He lost considerable funds and received significant reputational damage: his one-year-old forecasts of $100,000 per bitcoin have not been fulfilled, and now he’s massively trolled for his public trading recommendations on LUNA because of the catastrophe which affected many users.

The main reasons for the destruction of the project, Michael Novogratz calls macroeconomic conditions that were unfavorable for all risky assets in the current year, as well as an insufficient reserve fund to ensure the stability of LUNA and UST tokens. He is also confident that the market will be doomed to go through a phase of declining confidence in the sector of decentralized finance and cryptocurrencies in general.

Novogratz keeps calling LUNA a “big idea” that “failed” and warns of “difficult times” for the industry. It must be said that Tether CTO Paolo Ardoino also spoke out that the UST project was not a scam but a victim of wrong calculations.

Michael partially denies his responsibility for the loss of those people who invested all their money in LUNA. He wrote that he always called for diversifying risks and partially fixing profits. And Galaxy has always followed this strategy. Reading about someone holding their money in one asset and losing it all is “heartbreaking”.

Novogratz also mentioned the tattoo he got in honor of LUNA at the beginning of the year. At the time, he publicly promised to get such a tattoo and declare himself a “LUNA-tic” if the token would manage to rise above $100. Now this tattoo will “always remind him that venture investing requires modesty and humility.”

Bitcoin maximalists may exult: the world’s top cryptocurrency has shown stability and even received a compliment from economist Peter Schiff, who has previously criticized BTC at every opportunity. However, like Novogratz, Schiff believes that what is happening today can only be a preparation for an even more significant fall.