Luna, a billionaire, has learned lessons from the UST

Luna, a billionaire, has learned lessons from the UST ...

Mike Novogratz slammed his first time.

The entire process took about ten days, and the actor immediately opened up and explained.

The crypto space was in a panic because beyond the people who lost their savings, the trust that the market had built in recent months with Main Street and regulators took a big hit in this flash crash of UST, also called TerraUSD, and Luna.

The impact of Novogratz is important and may take months to quantify. Luna, a billionaire, was a huge fan of Luna, which he so-called to tattoo the brand on his left arm.

In his words, Novogratz became a''Lunatic'' and became a ''Lunatic.''

Galaxy Digital invested in Luna in the fourth quarter 2020, according to Novogratz in a letter published on May 18. While many users on social media questioned whether Novogratz had done his due diligence before starting topromote Luna.

Luna and UST are native tokens of the Terra ecosystem. According to CoinGecko, almost 13,500 digital currencies have been created. And coins are minted, or created, almost every day.

"Our initial aim for investing in Luna was to expand blockchain native payment systems," Novogratz said.

"At the time, we discovered that the Chai app, which was built on Terra, had more than 1.8 million users and was considered to be one of the top five finance apps in South Korea.

"We were enthused by this technique of crypto discovering a real-world use case."

After Galaxy Digital''s investment, he explained that the project behind Luna had taken on the correct path: "The initial concept was gaining tremendous traction."

Novogratz explained that inflationary pressures and worries about the recession caused the debacle of UST, an algorithmic stablecoin, who tended to be Luna instead of traditional currencies like the dollar or gold.

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''''Crypto Is Not Going Away''''

"The rising pressure on reserve assets, coupled with UST withdrawals, triggered a stress scenario similar to a ''run on the bank,'' the former banker said. "The reserves were inadequate to protect USTs'' from falling. "

He said he''ll keep his tattoo so he''d never forget this tragic event. He said he learned from those who venture into the young and volatile crypto/web3/metaverse world.

"My tattoo will be a constant reminder that venture investing requires humility," Novogratz said.

Investors are advised by him:

1. maintain a diverse portfolio;

2. maximize profits along the way;

3. have a risk-management strategy, and,

4. understand that all investments are made in a complex way.

He urged future investors to risk only what they could afford if they want to avoid such financial train wrecks.

"It''s important that less experienced market participants only risk what they are comfortable losing. Ive often claimed that people should allocate 1% to 5% of their assets to the space," said the billionaire.

Luna''s collapse would result in a net loss of $300 million for Galaxy Digital in the second quarter.

Through it all, Novogratz remains a strong supporter of crypto. He explained that while the crypto industry would continue to experience storms like the actual one, he had no doubt about its future.

"Crypto is not going away," said Novogratz. "This does not mean the crypto market will bottom and head straight back up. It will take restructuring, a redemption cycle, and renewed confidence in crypto. Crypto moves in cycles, and we just witnessed a big one.

"The crypto community and Galaxys mission isn''t changing. I believe that the crypto revolution will continue. Together, we can brave this storm and come out stronger on the other side."

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